IN BRIEF (Page 24)

China Literature to raise funds in HK

The mainland's China Literature Ltd launched an initial public offering in Hong Kong on Oct 23 worth as much as $1.1 billion (935 million euros; ￡834.8 million), seeking funds for acquisitions and to expand its digital publishing business, IFR reported, citing a term sheet of the transaction. The Tencent Holdings unit is China's largest online publishing and e-book company. Tencent and China Literature did not immediately reply to a Reuters request for comment on the IPO terms.

Huawei says phone shipments grow by 19%

Huawei says its mobile phone shipments have exceeded 100 million units, up by 19 percent year-on-year, in the first three quarters of the year. The growth raised the company's operating revenue by more than 30 percent from January to September, says Yu Chengdong, CEO of Huawei's consumer business group. The number of Huawei retail outlets has increased by 19 percent year-on-year to 42,300 worldwide. Yu says Huawei plans to expand its global market and upgrade its brand image with medium to high-end products. "With over 10,000 employees around the world working on research and development, we expect to win more high-end customers, as there is more profit in the high-end sector," he says.

Sovereign bonds to bolster opening-up

The Ministry of Finance was to kick-start its plans to issue US dollar-denominated sovereign bonds worth $2 billion (1.7 billion euros; ￡1.5 billion) by holding investment and financing discussions with potential investors in Hong Kong on Oct 25. Half of the $2 billion in debt will consist of five-year bonds; the other half will be 10-year bonds. It will mean a reopening of the financing channel connecting the international capital markets by adding an important investment and risk-hedge instrument, according to a statement released on the ministry's website on Oct 24. The bond offering will support a much more balanced structure of China's sovereign bonds, the statement said.

JD.com marches into real estate market

JD.com Inc, China's second-biggest internet retailer, is launching a new site on its online platform targeting property buyers in association with leading developers, even as the red-hot housing market in the country appears to be cooling on the back of curbs. The company says it will take steps to integrate online and offline real estate businesses by creating a one-stop service platform that will integrate its capacities in marketing, services and the supply chain. JD.com will also establish a specialized team to work with other property companies in fields such as commercial real estate, tourism real estate, real estate for senior citizens and overseas real estate, as well as to develop in-depth, tailor-made properties for consumers. The company also signed a strategic partnership with Country Garden Group, a property development company based in Guangdong province, to launch high-quality houses and offer discounts to boost property sales during the upcoming Singles Day shopping spree.

Alipay starts payment services in Denmark

Alipay, the mobile payment service of e-commerce giant Alibaba Group, launched its services in Denmark on Oct 23. Operated by Ant Financial Services Group, an Alibaba affiliate, Alipay users can hail a taxi, book a hotel, buy movie tickets, pay utility bills, make appointments with doctors or purchase wealth management products directly within the app.

Sugar imports decline by 67.5% in September

China's sugar imports fell by 67.5 percent in September from a year earlier to 160,000 metric tons, as hefty tariffs on foreign arrivals continued to dent buying appetite, customs data showed on Oct 23, while corn imports rose sharply to meet a temporary tightness in supply. Sugar imports in the first nine months of the year fell to 1.83 million tons, down by 29.8 percent year-on-year, the General Administration of Customs says. Beijing has slashed permits for out-of-quota sugar imports to around 1 million tons, almost half of last year's allowance. It also imposed extra tariffs on sugar imports after lobbying by domestic mills, all part of its efforts to curb imports that it says have damaged the domestic industry. That led to imports in July of just 60,000 tons, the lowest in three years. September imports were also down by 20 percent from last month's 200,000 tons.

Central bank injects cash via reverse repos

China's central bank made a net cash injection via open market operations for the fifth consecutive day on Oct 23 in an effort to ease a temporary cash strain. The People's Bank of China pumped 200 billion yuan ($30 billion; 25.6 billion euros; ￡22.8 billion) into the market through reverse repos, a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future. The operations included 110 billion yuan of seven-day reverse repos priced to yield 2.45 percent, and 90 billion yuan of 14-day reverse repos with a yield of 2.6 percent. The injection saw a net 140 billion yuan pumped into the market on Oct 23, offset by 60 billion yuan in maturing reverse repos. The move is to "keep liquidity basically stable" in response to spiking liquidity demand due to seasonal factors such as tax payments, the PBOC said in a statement on its website.

Investors confident on securities market

Investor confidence in China's securities market remains strong, data from the China Securities Investor Protection Fund Corp showed. The investor confidence index compiled by the SIPF came in at 58.1 in September, retreating 0.9 percent from August's high. On a yearly basis, the index still marked a 15.5-percent rise. Readings above 50 signal investor optimism. Chinese stocks have steadily moved upward since June. Investors have strong confidence in China's economy, both in economic policy and overseas operations, the SIPF said in a statement.

BYD's new Midibus wins Netherlands order

Connexxion, a large public transportation company in the Netherlands, has announced an order of 21 Midibus units from China's BYD. The new model of Midibus debuted at the six-day Busworld Europe (Kortrijk) in Belgium. The Dutch company said the new model of BYD's Midibus, a classification of single-decker minibuses that are larger than a traditional minibus but smaller than a full-size single decker, will be put into service in the northern part of North Holland, a province in the northwest of the Netherlands. The new fleet will deliver a service in largely rural areas during the daytime, Connexxion said before the opening of the show, which ended on Oct. 25. BYD Co Ltd is a leading high-tech multinational company based in Shenzhen, Guangdong province.

Egypt hosts trade fair for Chinese investors

Egypt launched the largest trade fair for Chinese investors on Oct 24, as Chinese companies in Egypt showcased their products and services to local consumers. The inauguration ceremony of the China Trade and Investment Exhibition held at the Cairo International Fair Ground was attended by a number of Egyptian and Chinese businessmen as well as officials from both countries. Chinese companies and manufacturers displayed various products such as textiles and garments, furniture, home electronics, building materials and cars. "China ranks 21st among foreign countries investing in Egypt, and we are targeting to have China among the top 10 investors," Mona Zobaa, chairwoman of the Egyptian General Authority for Investment, told Xinhua. China is Egypt's largest trading partner, with trade volume of about $11 billion (9.3 billion euros; ￡8.3 billion) in 2016 and about $5.2 billion in the first half of this year.

(China Daily European Weekly 10/27/2017 page24)