China Business News

S.J.Grand offers quality research, case studies and essential updates on the latest China tax and business issues through our news feed, periodic newsletters and our online resource library.

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Chinese internet companies jump on WSJ report of Facebook IPO

The Wall Street Journal has reported that Facebook may file for an initial public offering next week, led to a surge in Chinese internet companies. Renren Inc, a social media company in China, saw its shares jump 26% to $5.25 at Friday’s close in NY after the WSJ report was released.This surge is the highest in more than eight months. Renren’s stock increased an additional 20% in Monday’s trading. Similarly, Sina Corp, which operates a service similar to Twitter, rose 12% to $69.96 last Friday. 

China weighing plan to relax capital rules for banks

--Banking regulators eyeing change to boost loans to cash-strapped SMEs--

China's holdings in US treasury securities fell in November

China’s treasury securities fell by 0.1%, or $1.5 billion, in November to $1.13 trillion, according to Treasury data and the bill holdings fell 12% to $2.3 billion as yields on the debt approached lows of the year, and total foreign demand accelerated.

VAT treatment for sale of self-used fixed assets

--Simplified method to be used to calculate VAT payment when selling self-used fixed assets under certain circumstances--

Foreign Direct Investment in China slows

--Lagging western economies lead to decelerating FDI--

China’s Ministry of Commerce said on Dec. 30 that the outlook for foreign investment this year is “not optimistic.” Foreign direct investment in China fell for the second straight month in December 2011 as the ongoing crisis in developed western economies has decreased companies’ appetite for further investments.

SJ Grand Shanghai relocates within same complex


S.J. Grand Shanghai has moved to new, larger premises on the same floor as our former office in Haitong Securities Towers. The new office can be found at:

Suite 1807, Haitong Securities Tower, 689 Guangdong Road, Shanghai 200001

All existing phone and emails remain current.

China to encourage HK listings

 --Small and medium size firms to be allowed to list--

 The China Securities Regulatory Commission plans to relax controls on Hong Kong and overseas listing for Chinese companies by revising rules this year, simplifying the approval procedures and lowering thresholds for small to medium sized and privately owned Chinese companies to list. This move will open the door wider for small and medium enterprises and encourage more mainland companies to seek yuan-denominated listings in Hong Kong.

London to become offshore RMB trading center

--Plans set to increase RMB convertibility--

London is planning to team up with Hong Kong to become a major offshore trading center for RMB. The HK Monetary Authority (HKMA) and the UK Treasury have agreed to launch a private-sector forum to strengthen links between HK and London in such areas as clearing and settlement, market liquidity and  development of new RMB-denominated products, the HKMA announced in a news release. 

Beijing kicks off VAT reform implementation under Pilot Project

 Beginning in January 2012, Shanghai kicked off a pilot project in transport and certain modern service sectors. Following in Shanghai's  footsteps, Beijing has recently taken a step to initiate VAT reform by submitting its application to the MOF and SAT to start a similar pilot project in the transportation industry and certain modern service industries.

RMB cross-border circulation to accelerate

The People’s Bank of China has announced an increase in cross-border circulation channels for the RMB, extending the use of the local currency to settle cross-border trade with the entire country. Previously, only 20 provincial regions in China could conduct such settlements. China will also allowed foreign investors to make direct investments with RMB legally obtained overseas.

In addition, the PBOC has signed currency-swap agreements with 14 governments worth RMB 1.3 trillion yuan, including South Korea, Malaysia, Hong Kong SAR, Belarus and Argentina. 

China's GDP growth to slow to 8.3% in 2012

China’s economic growth is expected to slow to 8.3% in 2012, according to a report by Deutsche bank. The economy will continue to decelerate in the first quarter of 2012 mainly due to property investment slowdown and slowdown in export due to weak demand from Europe, with year-on-year GDP growth dropping to somewhere between 6 and 7%, said Ma Jun, an economist with the bank.

However, improvement in Eurozone economies, loosening domestic monetary policies and fiscal measurements could result in GDP growth rate surging in the second quarter and third quarter, Ma said.

Mergers and Acquisitions rising in China

Amid a global economic downturn, cross-border mergers and acquisitions in the Chinese market soared by almost 100 percent yoy in 2011 in terms of the disclosed value, according to a report released by Zero2IPO Research Center.

China weighing benefits of Carbon Taxation

China is considering tightening its tax regulations on polluting industries by levying a carbon tax on China’s biggest energy consumers before the end of the current Five-Year Plan (2011-2015), according to the China Daily.

November FDI in China drops 9.76%

--Annual growth still positive--

Foreign direct investment  in China in the month of November was down almost ten percent (9.76%) when compared with November of last year, the Ministry of Commerce (MOC) reported last Thursday. The establishment of foreign companies was also down 12.9% in November when compared with last year.

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