China :: Business & Economy

The China Investment Corp (CIC), the country's sovereign wealth fund, on Monday signed an agreement to pay GDF Suez 2.3 billion euros ($3.2 billion) in exchange for a 30-percent stake in the French company's exploration and production division. CIC chairman Lou Jiwei signed the agreement Monday in Beijing with Gerard Mestrallet, chairman and chief executive officer of GDF Suez. CIC also agreed to pay 600 million euros for a 10-percent stake in GDF Suez's Atlantic LNG liquefaction facility located in Trinidad and Tobago. The deal is expected to be finalized at the end of the year. Gerard said that the partnership with CIC will provide opportunities for GDF Suez to boost its businesses. On Monday, GDF Suez also signed an agreement to supply China's largest off-shore oil producer, the China National Offshore Oil Corporation (CNOOC), with a ship that can store and regasify liquid natural gas. GDF Suez is the largest buyer of natural gas and importer of liquefied natural gas...

The latest quarterly report from the China Consumers' Association shows that the public is becoming more concerned about food quality. And at a time when watchdogs are becoming more vigilant in cities, experts are warning that residents of rural areas are at the worst risk of being victims of faulty food products. In the third quarter, the association received more than 10,000 complaints about the food industry, 22 percent more than it had in the same period a year ago. A chief contributor to that increase was sales of expired food. On Sept 19, a grocery store owner in Linhai city of East China's Zhejiang province, who would only state his surname, Wu, reported to the local industrial and commercial bureau that a salesman had sold expired and substandard food to his store. "It was the second time I had encountered that type of situation in a month," Wu said. "The salespeople claimed they purchased the products from wholesalers." Experts said they have also n...

China is likely to say farewell to double-digit economic growth during the 2011-13 period, with next year's projection down to 8.6 percent, according to a report by the Paris-based Organization for Economic Cooperation and Development (OECD). Amid worsening US and eurozone crises, the OECD said on Monday that this year China's economy will achieve 9.3 percent growth, down from last year's 10.4 percent. In 2013, China's economy will bounce back to 9.5 percent growth. The OECD didn't elaborate on the reasons for China's economic slowdown. But it is very clear that the contracted global growth resulting from the eurozone debt crisis and US fiscal problems have been hindering China's economy, which still heavily depends on trade and investment. Presenting a special briefing note ahead of the G20 Cannes Summit and urging G20 leaders to take bold action to get the global economy back on track, OECD Secretary-General Angel Gurria said on Monday in Paris that withou...

THE average price of new homes in Shanghai fell to the lowest in six months last week as a few real estate developers began to slash prices to trigger sales. New homes, excluding affordable housing, were sold for an average 19,348 yuan (US$3,056) per square meter during the seven-day period ended Sunday, the lowest in 27 weeks, according to research from Shanghai Deovolente Realty Co. Transactions, meanwhile, jumped 46.3 percent from a week earlier to 138,700 square meters, Deovolente data showed. "Significant price cuts offered by several developers across the city, though arousing anger among its current homeowners, immediately boosted sales and dragged the average price down below the 20,000-yuan-per-square-meter barrier, the first time in more than 10 weeks," said Lu Qilin, a researcher with Deovolente. "For the whole of October, new home sales will probably hover around only 450,000 square meters, a decrease of around 20 percent from September." Last week, a re...

The Qinghai-Tibet Power Grid Interconnection Project has been completed and went into trial operation early Monday morning, according to local authorities. A converter station in Lhasa, the capital of Tibet Autonomous Region, went into operation at about 3 a.m. Monday, according to Peng Kai, chief engineer with the Hubei Electric Power Transmission Distribution Engineering Company, which runs the project. The opening of the Lhasa station, located at the end of the power grid, symbolizes the completion of the entire project. The trial operation period will end on Nov. 15, according to Yu Le, chief engineer of the DC Construction Branch of the State Grid Corporation. The entire project, with a total investment of 16.2 billion yuan (2.54 billion U.S. dollars), consists of three parts: a transmission line from Xining, the capital of Qinghai Province, to the city of Golmud in the center of the Qinghai-Tibet Plateau; a transmission line from Golmud to Lhasa and power grid facilities in Tibet...

China's foreign exchange regulator said Monday that the total surplus of Chinese banks' foreign exchange from bank-to-client transactions reached 26 billion U.S. dollars in September. In September, institutional and individual clients sold 142.6 billion U.S. dollars in foreign currencies to banks while purchasing 116.6 billion U.S. dollars, the State Administration of Foreign Exchange (SAFE) said in an online statement. From January to September, more foreign currencies were sold than purchased through Chinese banks, resulting in 380.7 billion U.S. dollars of foreign exchange surplus during the period, the statement said. Foreign exchange surpluses, which make up part of China's foreign exchange reserves along with current account surpluses and foreign direct investment inflow, do not include banks' own foreign exchange transactions or interbank transactions, according to the SAFE. Last year, foreign exchange surpluses made through Chinese banks' transactions with d...

The capital's free Wi-Fi service, to be launched in a number of areas, is safe, officials said, amid fears that personal information and privacy may be compromised. China Mobile, China Unicom and China Telecom subscribers will be able to enjoy, by the end of November, a 2Mbps public wideband service through the hotspot named "My Beijing" at Xidan, Wangfujing, the Olympic Center, three major train stations, Financial Street, Yansha and Zhongguancun. All Wi-Fi services will be free for three years under a pilot project. However, to obtain the access password they need to enter cell phone numbers "for identity authentication" according to the Beijing Municipal Commission of Economy and Information Technology. "I do not feel comfortable releasing my cell phone number," said Zhou Yan, an English teacher at the New Oriental School in Beijing. The reason for his uneasiness is that during a recent bank transaction, he released his phone number and he has been ...

Dell Inc's personal computer market share is declining worldwide but its top management doesn't seem worried. China's Lenovo Group Ltd was named the world's No 2 personal computer maker by two research firms in mid-October, behind Hewlett-Packard Co and surpassing Dell in terms of third-quarter shipments. Speaking at a recent media briefing, Dell Chief Executive Officer Michael Dell said his company may ship fewer units than Lenovo but will enjoy greater PC revenues and profits because it sells higher-end machines. In addition, Dell said his company has grown well beyond its historical role as a maker of personal computers and a direct sales organization. Dell is becoming a one-stop shop with servers, storage and networking, as well as a services business, said the founder, clarifying Dell's transformation and new strategy at a Dell World symposium. "If I look at our relationship with companies that make airlines, most of our business with them is not products ...

SHANGHAI'S stocks may continue a rebound with volatility next week after achieving the biggest weekly gain in a year last week, analysts said. The Shanghai Composite Index climbed 6.7 percent last week to close at 2,473.4 points after European Union leaders reached a last-minute deal to battle the euro debt crisis and China's top economic planning body said inflation is likely to slow to less than five percent within the next two months. The strong sentiment was also reflected by the turnover, which expanded to the highest level in two months last Friday. Yi Xiaobin, an analyst from Galaxy Securities Co, said the market recovery is expected to continue this week on anticipation that China might ease its tightening monetary policies. China will "fine-tune" its economic policies in an appropriate degree and appropriate time and secure "reasonable" money supply growth in the coming months, Premier Wen Jiabao said this week. "But the market growth needs to ...

Shanghai strives to grow its market mechanism with global influence through innovations and will open to the world's business as an efficient and transparent city, Mayor Han Zheng said today. "The Shanghai government will step on to improve the market system and endeavor to offer a first-class environment to serve the market," Han told the 23rd International Business Leaders' Advisory Council for the Mayor of Shanghai meeting in the Expo Center this morning. Shanghai will push forward the international board at the Shanghai Stock Exchange, bank on the internationalization of the local currency, and actively seek new factor markets to be established in the city, he said in a keynote speech. Shanghai is already home to the country's major stocks market, China's sole exchange for bonds, currency, gold and financial derivatives. The city aims to build up the Shanghai Stock Exchange as one of the world's top three bourses measured by market value and turnover b...

China will make law on philanthropy, according to the national legislature on Saturday. The legislation of philanthropy has been listed on the legislative agenda of the 11th National People's Congress (NPC) Standing Committee and the legislative plan of 2011, according to a report adpoted by the NPC Standing Committee at their just-ended bimonthly session. The Legislative Affairs Office of the State Council is reviewing a draft submitted by the Ministry of Civil Affairs, with focuses on fostering philanthropic organizations, soliciting contributions, supervision and tax preferences. Some deputies to the NPC proposed the legislation of philanthropy during the annual legislative session in March. Some deputies proposed legislation on soliciting contributions. The NPC's Committee for Internal and Judicial Affairs agreed with the Ministry of Civil Affairs on that it was unneccessary to make a law on soliciting contributions, since it had been included in the draft law on philanthro...

CHINA'S first Airbus A380 superjumbo, owned by China Southern Airlines, had mechanical problems yesterday morning before takeoff on a flight from Beijing to Shanghai after being in operation for only 12 days. The malfunction was detected on the flap driving system on the wings and the airline had to get equipment from abroad to fix it, China Southern announced shortly after the malfunction. The company apologized to passengers. The Guangzhou-based airline dispatched an Airbus A330 passenger plane to take 188 of the more than 380 passengers on the flight to Shanghai's Pudong International Airport. They arrived about an hour after they were originally scheduled to land. The remaining passengers, who chose not to take the A330 aircraft to Shanghai, were allowed to take the A380, the world's largest passenger plane, after repairs had been completed. It was unclear how long they had to wait. Each economy class passenger was given 400 yuan (US$62.8) in compensation, an official w...

China'sefforts to tap bank loans to ease a tight liquidity situation for its troubled railway construction could cut the danger of a hard landing, but add risks on lenders' balance sheets, analysts have said. Over the past months, construction of more than 10,000 kilometers of rail track has been halted as funds have dried up, leaving workers without pay, according to Chinese media reports, citing Wang Mengshu, vice chief engineer of the China Railway Tunnel Group. The sudden halt came in a tight liquidity environment and after the deadly July train crash in Wenzhou, Zhejiang Province, which rattled investor confidence and limited the Ministry of Railways' ability to borrow money or sell debts. The ministry has relied heavily on bond sales to finance rail construction. Its outstanding debt was 2.09 trillion yuan (US$329 billion) at the end of June. Now, according to the 21st Century Business Herald, the debt-laden ministry may have secured bank loans worth 150 billion yuan ...

The European Union envoy to the South Caucasus country of Georgia on Friday welcomed an agreement between Georgia and Russia on the latter's WTO accession. "We are very pleased that Russia and Georgia appear to be close to an agreement which, in our view, will strongly benefit both sides," Philip Dimitrov, the EU ambassador to Georgia, said in a statement. "We give full support to the Swiss-mediated efforts that recently made finding the solution likely. The European Union would very much like to see a decision on Russia's accession to WTO ministerial this year. We encourage the parties to finalize the deal in the coming days." The EU envoy made the statement after Georgian Deputy Foreign Minister Tornike Gordadze said at a briefing on Friday that Georgia had agreed to a proposal by Switzerland regarding Russia's accession to WTO. But no details concerning the proposal were made public. In another development, Stefan Johannesson, chairman of the WTO work...

The Dispute Settlement Body of the World Trade Organization issued a panel report on Friday, rejecting certain key anti-dumping measures of the European Union (EU) imposed on footwear imports from China. In particular, the report found Article 9(5) of the EU's Basic Anti-Dumping Regulation inconsistent with its WTO obligations. The rejected claim states that, in cases involving imports from Non-Market Economy countries, the anti-dumping duty shall be specified for the supplying country concerned and not for each individual supplier. In this case, the Dispute Settlement Body supported China's claim that applicable WTO rules require that an individual margin and duty be determined and specified for each known exporter and producer and not for the supplying country as a whole. In addition, the Dispute Settlement also ruled that the EU had acted inconsistently with the Anti-Dumping Agreement in some aspects of the original investigation and expiry review. China welcomes the WTO pan...

CHINESE Vice Finance Minister Zhu Guangyao said yesterday that the G20 summit will not discuss whether its members will capitalize the eurozone bailout package known as the European Financial Stability Facility. He said the leaders will not discuss buying European bonds at the summit either. "This is not on the agenda of the summit," Zhu told a press briefing about Chinese President Hu Jintao's attendance of the G20 summit in Cannes, France, next week. The Cannes summit will instead focus on the core subjects of promoting global growth and maintaining stability in the global market, Zhu said. It will discuss such topics as reforms of the global currency system, financial supervision, controlling price fluctuation of bulk commodities and development issues.

SHANGHAI Stock Exchange rose for a fifth day today with the benchmark index clocking the largest weekly gain in a year while turnover expanded to the highest in two months after the eurozone struck a last-minute deal to limit the damage from the currency bloc's debt crisis. The Shanghai Composite Index climbed 1.55 percent to 2,473.41. It jumped 6.74 percent this week. Turnover today also expanded to over 104.2 billion yuan (US$16.41 billion), the first time it exceeded 100 billion yuan in two months. The across-the-board rally was sparked by speculation that China may start to ease tightening measures, including removing property curbs as officials with the country's top economic planning body said inflation was expected to slow to less than 5 percent within two months. China Vanke, the country's largest developer, advanced 3.13 percent to 7.91 yuan. Poly Real Estate Group Co, China's second-largest developer by market value, added 4.41 percent to 10.17 yuan. Chinese p...

China's economic slowdown will result in more acquisition opportunities for foreign investors, Blackstone Group executives said. But the world's largest private equity (PE) company will shun China's real estate market for the time being because property prices have risen too high. "Blackstone will be much more enthusiastic in a softer economic environment," Stephen Schwarzman, chairman and chief executive officer of the Blackstone Group, said in Beijing on Thursday. The Chinese economy grew at a slower pace of 9.1 percent in the third quarter, a slowdown Schwarzman said "may give rise to some economic dislocations". That dislocation means that some companies may have financial difficulties, a scenario he said will provide good opportunities for investors such as Blackstone. Schwarzman said Blackstone likes to invest when other people become pessimistic. "When most people are scared and leaving, we try to see what will change positively." Blacks...

China may face a peak power shortage of up to 40 gigawatts in winter and spring as rising demand outpaces expansion in generation capacity, an industry group said yesterday. Other factors contributing to the shortfall include low coal quality which could lead to unplanned power plant maintenance, and a lack of coordination between power generators and distributors, according to the China Electricity Council. China's estimated total generation capacity may total about 1,050GW at the end of this year, a rise of about 8.8 percent year on year, but the country may still face a total peak deficit of 30-40GW. Industry officials said rising coal prices, which will erode the profit margins of power generators, could also worsen the shortfall in coming months. The shortfall may affect the main manufacturing hubs of Guangdong and Zhejiang provinces as well as Henan and Hunan provinces in central China, according to local grid operators. China's power demand is forecast to grow 13 percent...

OIL jumped more than 4 percent yesterday as the US economy grew and Europe appeared to turn the corner on its debt crisis. Benchmark crude rose US$3.76, or 4.2 percent, to end the day at US$93.96 per barrel in New York. That's the highest it's been since the first week of August. Brent crude, which is used to price oil that's imported into the US, rose US$3.17, or 2.9 percent, to finish at US$112.08 in London. Prices soared after European leaders announced an agreement to reduce Greece's debt and head off a default. After hours of intense negotiations, the Europeans unveiled a plan to cut Greek debt, bolster the continent's banks to handle losses on Greek bonds and reinforce a European bailout fund. In the US, the government said the economy grew at an annual rate of 2.5 percent in the July-September quarter. That's the strongest growth this year and quieted concerns that the country is headed for another recession. Stock markets also soared on the news. The Dow...

EUROZONE leaders struck a last-minute deal to limit the damage from the currency bloc's debt crisis early yesterday but are still far from finalizing plans to slash Greece's debt burden and strengthen their rescue fund. After a summit in Brussels, governments announced an agreement under which private banks and insurers would accept 50 percent losses on their Greek debt holdings in the latest bid to reduce Athens' massive debt load to sustainable levels. Reached after more than eight hours of hard-nosed negotiations among bankers, heads of state and the IMF, the deal also foresees a recapitalization of hard-hit European banks and a leveraging of the bloc's rescue fund, the European Financial Stability Facility, to give it firepower of 1.0 trillion euros (US$1.4 trillion). European stocks surged to a 12-week high and the euro shot above US$1.40 to reach its top level against the dollar in seven weeks following the deal. But key aspects of the arrangement, including the m...

Related Reading: BEIJING, Oct. 25 (Xinhua) -- Chinese lawmakers Tuesday heard government reports on the construction of housing units for low-income earners, environmental protection and the work of county-level courts and procuratorates. In a report submitted to the ongoing bimonthly session of the Standing Committee of the National People's Congress (NPC), Minister of Housing and Urban-Rural Development Jiang Weixin said that nearly 22 million low-income households have been sheltered with housing units thanks to government-sponsored affordable housing projects from 1998 to the end of last year. The number of new low-income housing units to be constructed and housing units in run-down areas to be renovated during the coming five years will total 36 million, Jiang said. ...

SHARES in Shanghai rose for a fourth straight day today on speculation that China may start monetary easing while EU leaders also reached a deal on battling the euro debt crisis. The Shanghai Composite Index added 0.34 percent to 2,435.61. Turnover fell to 75.1 billion yuan (US$11.83 billion) from yesterday's 98.6 billion yuan. Shanghai-based transportation and service firms were among the strongest performers today after China announced late yesterday it would start lowering corporate taxes in selected service industries next year. The trial scheme will focus on Shanghai as the government acts to support companies saddled by rising costs and slowing growth. Dazhong Transportation Group Co jumped by the daily limit of 10 percent to 6.44 yuan. Shanghai Jiabao Industry & Commerce Co also posted a nearly 10 percent rise to 5.97 yuan. Transportation and some service companies in Shanghai will have their businesses taxes replaced by a value-added tax, the majority of which will be d...

EUROPEAN leaders agreed early today that private creditors have to accept a 50 percent cut in the value of the Greek government debt they hold, and the bailout fund would be increased to 1 trillion euros (US$1.37 trillion). "We have reached a sustainable solution for Greece," said Herman Van Rompuy, the European Council president, at a press conference held after a prolonged eurozone summit which dragged from yesterday evening to this morning. To reduce Greece's public debt to 120 percent of its GDP in 2020, a voluntary contribution by private holders of Greek debt is needed, and they have agreed to take a nominal discount of 50 percent on notional Greek debt, Van Rompuy told reporters. The EU leader also hailed a "sufficient firewall against contagion, thanks to an agreement to multiply by fourfold the firepower of the European Financial Stability Facility (EFSF) rescue fund" to increase it to 1 trillion euros. To bolster the firepower of the EFSF, the eurozone...

Most Chinese enterprises remain bullish about the outlook of the domestic economy and are optimistic about the employment prospects over the next year despite increased global economic volatility, a survey showed on Wednesday. An overwhelming 86 percent of Chinese companies said that they believe the domestic economy remains stable or is modestly improving, a survey by accounting firm Ernst & Young Inc showed. The survey was conducted in July and August, when the declining growth in the United States coupled with that country's credit downgrade and the escalating sovereign debt crisis in Europe sparked dramatic stock market activity. More than 1,000 senior executives from 51 countries and regions participated in the survey. Sixty-three respondents were from China - senior executives of companies in a wide range of industries including automotive, consumer products, financial services, manufacturing, energy and resources. Despite concerns over weakening global growth, 65 percent...

Guo Zhuliang took a deep breath and shook his head as he talked about his company. "We have 33 injection molding machines. But less than half of them are operating due to reduced orders. I am really worried about the future," said Guo, a production manager at Huijun Plastic in Foshan, a manufacturing city on the Pearl River Delta. Guo's concern followed the closure of another plastic company, also located in Foshan, whose boss ran away on Aug 19 without paying wages to more than 1,000 workers. "Declining orders, the increased cost of labor and a shortage of funds have forced us to lower production capacity," he said. The company earned at least 10 yuan ($1.57) per product in 2000, when it was established. "But now we earn less than 2 yuan. We don't have a bright future if the situation continues," he said. The bleak outlook is not confined to one sector. A number of private businesses, ranging from shoemaking, knitting and electronics to other trad...

SHANGHAI stock exchange rose for a fourth day in the morning session today on speculation that China may start to ease its monetary tightening while EU leaders also reached a deal on battling the euro debt crisis. The Shanghai Composite Index edged up 0.39 percent to 2,436.84. Turnover climbed to 43.9 billion yuan (US$6.9 billion). Shanghai-based transportation and service firms were among the strongest performers this morning after China announced late yesterday it would start lowering corporate taxes in selected service industries next year. The trial scheme will focus on Shanghai as the government acts to support companies saddled by rising costs and slowing growth. Dazhong Transportation Group Co jumped by the daily limit of 10 percent to 6.44 yuan. Shanghai Jiabao Industry & Commerce Co also posted a nearly 10 percent rise to 5.97 yuan. Transportation and some service companies in Shanghai will have their businesses taxes replaced by a value-added tax, the majority of which wi...

China's industrial growth will continue to slow in the coming months and in 2012. That's because of weakening economic forces, both domestically and overseas, according to an official from the Ministry of Industry and Information Technology on Wednesday. China is likely to see industrial output grow by around 11 percent next year, in line with a slowing trend from the fourth quarter onwards, Xiao Chunquan, an official at the ministry, told a news briefing. So far, growth has been decreasing on a year-on-year basis, from 14.4 percent in the first quarter, to 13.8 percent in the third. The figure rebounded slightly to 13.8 percent in September from 13.5 percent in August. "With the continuing uncertainties over global economic turmoil and domestic inflation, and increasing efforts in the reduction of emissions and the optimization of the economic structure, growth will keep falling in the coming months," Xiao said. Chinese factories are struggling to cope with rising op...

A Pacific Department Store Co Ltd outlet near the Sanlitun area of Beijing serves its last customers on Tuesday. The subsidiary of Taiwan's Far East Group has closed its department stores in the Chinese capital. [ China Daily ] Pacific Department Store Co Ltd, a subsidiary of Taiwan's Far East Group, has closed its two department stores in Beijing and withdrawn from the Chinese capital. The store at Pacific Century Place (PCP) near the Sanlitun area served its last customers on Tuesday after a 10-year run. The other outlet, which opened in the Wukesong area in 2009, closed on Oct 20. Though the department store said it closed the outlets because of disagreements over lease renewal terms, experts said the stores weren't doing well. "Due to its unclear brand position, Pacific Department Store failed in Beijing," said Lai Yang, director of the Beijing Vocational College of Finance and Commerce's business research institute. Lai said there are various types of ...

OIL prices dropped more than 3 percent yesterday after the government said US supplies grew much more than expected. The price of benchmark crude fell US$2.97, or 3.2 percent, to end the day at US$90.20 per barrel on the New York Mercantile Exchange. Brent crude fell US$2.01 to finish at US$108.91 in London. The Department of Energy reported an increase of 4.7 million barrels in the nation's storage tanks last week. Analysts expected supplies to grow by only 200,000 barrels, according to Platts, the energy-information arm of McGraw-Hill Cos. For most of the year oil supplies fell in the US, as drivers and businesses burned less fuel and refineries cut their inventories to save money. Imports increased last week and boosted supplies, as many refineries finished their seasonal maintenance and kicked into higher gear. Refineries operated at nearly 85 percent capacity last week, up almost 2 percentage points in a week. The increased activity doesn't mean the US is consuming more fu...

China will start to lower corporate taxes in selected service industries next year under a trial scheme in Shanghai as the government acts to support companies saddled by rising costs and slowing growth. Transportation and some service companies in Shanghai will have their business tax replaced a by value-added tax, a majority of which is deductible, starting January 1, the State Council, or Cabinet, said yesterday in a statement. The idea is to eventually expand the program to the whole nation, the statement said. The country will also introduce two lower-rate VAT categories as part of the tax reform, it said. The two new VAT rates will be 11 percent and 6 percent in addition to the existing VAT brackets of 17 percent and 13 percent, according to the statement. Currently, the VAT applies only to enterprises or individuals who sell merchandise, provide processing, repair or assembly service, or import goods within China. Unlike the business tax, which is charged on a company's reve...

China and the Republic of Korea (ROK) have extended their currency swap agreement for another three years, the People's Bank of China (PBOC), the country's central bank, said in a statement Wednesday. The PBOC signed the agreement with its ROK counterpart Bank of Korea in Seoul on Wednesday, doubling the value of the deal to 360 billion yuan (56.7 billion U.S. dollars) from the previous 180 billion yuan, the bank said. The swap agreement, which was first signed on April 20, 2009, will be effective for another three years and can be extended upon the agreement of both sides, it said. The renewal of the swap agreement will strengthen bilateral financial cooperation, boost trade and investment between the two countries, and maintain regional financial stability, the PBOC said. The two sides have agreed to look into the possibility of converting part of the swapped currencies into major reserve currencies and will consider to what extent the currencies should be converted, it added...

Aluminum Corporation of China (Chinalco), the country's largest metal producer, swung back into the black in the third quarter on rising sales and higher margins, the Beijing-based company said on Wednesday. Chinalco's net profit reached 555 million yuan ($87.46 million) in the third quarter, compared with a net loss of 117.8 million yuan a year earlier, according to Chinalco's statement filed with the Shanghai Stock Exchange. Chinalco's net profit for the first nine months stood at 967.57 million yuan, the company said. The share price of Chinalco rose more than 2 percent in morning trading in Shanghai and jumped more than 5 percent in Hong Kong.

Now that the U.S. sovereign credit rating has been downgraded for the first time, and the Greek debt crisis has reared its head again, the global economy has dropped quickly to a freezing point as well. Once again, the U.S. and European media have started to discuss whether China will save the world. The problem is China has its own difficulties. Three engines of Chinas economy slowing Because of the emerging effects of China's domestic macroeconomic readjustment and control and the turbulence of the global economy, the three engines driving China's economy investment, consumption and import-export have all slowed. It has become a common view in the academic circle that China's economic growth is being restrained. Since the beginning of 2011, China's monetary policies have been tight and will not be loosened in the short term. The credit environment for investment is becoming severer and local governments' financing abilities have been limited. China will not inve...

The China Banking Regulatory Commission (CBRC), the country's top banking regulator, on Tuesday revealed detailed plans to encourage financial support for the country's small and micro-sized enterprises. In a supplementary notice issued to its previous support plan for financing small enterprises, the CBRC said banks should ensure that the growth of loans to small firms will not be slower than that of the average lending, and the growth should be higher than the level of the previous year. Also, commercial banks should give more support to enterprises that borrow less than 5 million yuan (787,401 U.S. dollars), and increase tolerance for non-performing loans to small and micro-sized firms, it said. The regulator has set detailed rules for the establishment of financial institutions serving small businesses, and encouraged banks to create financial instruments to support the development of small high-tech enterprises. The CBRC has also allowed banks to issue special financial bo...

China's industrial value-added output will grow by 11 percent this year and next, despite uncertainties including global economic turmoil, weak outbound demand and high inflation, a senior official said Wednesday. "The country will continue its efforts to promote economic restructuring and energy-saving and emission reduction plans, which may potentially slow industrial output growth over the rest of the year," Xiao Chunquan, deputy director of the Performance Inspection and Coordination Bureau of the Ministry of Industry and Information Technology, said at a press conference. "But the country will meet its full-year target of 11-percent output growth set at the beginning of 2011," Xiao said. During the first three quarters of this year, the country's industrial value-added output increased 14.2 percent year-on-year, down 0.1 percentage point from the growth in the first half of this year, according to data from the National Bureau of Statistics. Industrial ...

China's 3G mobile phone users reached 102 million by the end of September, 43.16 million of which used the country's self-developed TD-SCDMA standard, according to the Ministry of Industry and Information Technology (MIIT). Due to the fast increase of mobile phone users, China's telephone users hit a new record high of 1.24 billion by the end of September, said Xiao Chunquan, director general of the Bureau of Operation Monitoring and Coordination of MIIT, at a press conference held by the State Council's Information Office on Wednesday. According to Xiao, the 3G network covered all cities, counties and some villages in China. During the first three quarters, the country's telecom sector posted a 10 percent year-on-year growth in revenues from its main business, with comprehensive charges down 5.1 percent, said Xiao.

Gaopeng, which is partly owned by Groupon, reported a net loss of US$46.5 million since it was launched in March in China, forcing it to lay off staff and close its offices. In August, more than 350 employees at Gaopeng lost their jobs nationwide as its expansion into second- and third-tier cities outstripped its ability to generate enough revenue. This also caused Gaopeng to close offices. The firm reported US$2.14 million revenue by the end of September on the Chinese mainland, according to Groupon, the world's biggest daily deal site, and the parent of Gaopeng. After more than six months of operations, Gaopeng is still considered a small player in the industry, having only one-tenth the monthly visitors of market leaders like Juhuasuan and Lashou in August, according to Internet consultancy iResearch Inc. Hundreds of small group-buying sites were shut down last month, said a latest report by eTao.com, the online shopping search site of Taobao.

Gucci China and its former employees who said they had been abused by the Italian fashion label have reached a settlement agreement, the local labor union said on Tuesday. Five former employees of a Gucci flagship store in the southern boomtown of Shenzhen posted an open letter online earlier this month, accusing Gucci of making them work extra hours without pay and pay for any items stolen from the shop. They also claimed they were required to ask permission to use the toilet or drink water. Shenzhen's labor union said in a press statement on Tuesday that both sides have reached an agreement to settle the issue after several rounds of negotiations. However, the labor union did not disclose details about the settlement. The company has removed several managers from their posts and promised a review of its practices. The city's labor union also said Gucci had proposed setting up a labor union of its own in order to improve relations with its employees.

INTERNATIONAL oil prices fell yesterday on disappointing corporate earnings in the US and doubts that European leaders can agree on a plan to resolve that region's debt crisis. The price of Brent, which is used to price oil imported into the US, fell 53 cents to end the day at US$110.92 per barrel in London. Another key variety of crude saw higher prices on yesterday. Benchmark US crude - known as West Texas Intermediate - is now at its highest level since early August. The price is up partly because of a complicated trading strategy under which energy traders sell Brent and buy WTI to make money on the price difference. WTI on yesterday rose US$1.90, or 2.1 percent, to finish at US$93.17 a barrel in on the New York Mercantile Exchange. A sustained rise in WTI could eventually push gasoline prices higher, but analysts say that's not likely. US refineries rely more on Brent than WTI, and Brent prices are falling. Also, compared with last year, motorists are buying much less gaso...

Thirteen Wal-Mart stores in southwest China reopened on Tuesday after being closed down by local authorities for 15 days for selling incorrectly labelled pork. The company set up supervisory teams at stores in the city of Chongqing to improve management and overhaul product labeling during the temporary closure. Chongqing Mayor Huang Qifan said the measures that Wal-Mart took are rational and practical, adding that they demonstrate the company's sincerity and willingness to assume responsibility. "Although the stores were ordered to be closed after being accused of cheating customers, I hope they will correct their mistakes in wake of the incident," said a Wal-Mart customer surnamed Chen. The Chongqing Administration of Industry and Commerce conducted inspections of the stores twice a day during the closure period and gave administrative guidance to address management loopholes. Earlier this month, Wal-Mart was ordered to shut the stores down, as well as pay a fine of 2.6...

China Development Bank (CDB) and the country's top economic planner signed an agreement on Tuesday to jointly support the development of China's logistics industry, the CDB said in a statement posted on its website. The National Development and Reform Commission (NDRC) will create favorable policies to facilitate the industry's advancement, while the CDB will provide financial support, according to the agreement. The two parties will jointly support mergers and reorganizations inside the industry and nurture large logistics enterprises, according to the statement. They will also work together to promote the industry's development in China's western regions and provinces, including Xinjiang Uygur and Tibet autonomous regions and the provinces of Qinghai and Sichuan, the statement said. The CDB has provided 111.6 billion yuan (17.6 billion U.S. dollars) in loans to logistics companies since 2005, according to the statement. The CDB is one of three Chinese "policy...

SHANGHAI shares extended their gains for a second day today thanks to an across-the-board rally that drove the benchmark index to its biggest two-day gain since December. The Shanghai Composite Index added 1.66 percent to 2,409.67, the highest in a week. Turnover climbed to 83.64 billion yuan (US$13.17 billion) compared to yesterday's 63 billion yuan. All the 74 sectors in the Shanghai market jumped while commodity shares led the gains after base metals extended their biggest rally in three years ahead of Europe debt talks tomorrow. Jiangxi Copper advanced 5.93 percent to 27.52 yuan. Qinghai Jinrui Mineral Development Co jumped the daily cap of 10 percent to 18.6 yuan. Copper for delivery in three months on the London Metal Exchange yesterday gained as much as 2.4 percent to US$7,820 a metric ton, the highest level since September 22, and after surging 13 percent in the past two days. "The rally is really a rebound following the hefty losses among the commodity plays in previo...

Inventories of iron ore at 25 of China's major sea ports fell to 93.02 million tonnes in the week ending Oct. 24, according to the Xinhua-China Iron Ore Price Index released on Tuesday. The stock of imported iron ore last week was 50,000 tonnes lower than one week earlier, down 0.05 percent week-on-week, according to the index compiled by Xinhua News Agency to track iron ore inventories and imports on Chinese spot markets. Prices of imported iron ore dropped last week. The price index for 63.5-percent-purity iron ore imports fell by 19 points to hit 148 points, while that for 58-percent-purity iron ore imports slid by 29 points to reach 109 points. Xinhua analysts said import prices of iron ore have been on the downswing and market expectations of lower prices have strengthened. Chinese steel companies tend to increase purchases of iron ore ahead of September and October, the traditional peak months for iron ore use. China imported 42.54 million tonnes of iron ore during the first ...

Related reading Car rentals hit top gear as road to growth beckons Other transport options lose luster as people go for the wheel deal, report Hu Yinan in Shanghai and Wang Yan in Beijing. Air tickets are too expensive, trains aren't always safe, cabbies are on strike and car purchases are still limited. For bank clerk Lian Ping, it seemed as if all travel options had run out for her birthday trip from Beijing to Shandong province. "It wasn't until a few days ago that I realized with my driver's license I could just rent a car and drive there," Lian said on Friday, four days before her 29th birthday. "The thought never crossed my mind before. I didn't even know people offered auto rental services here." She decided to rent a Dongfeng Citroe...