Study predicts CPI could hit 3.11 percent in 2013

China's inflation may increase to 3.11 percent in 2013, up from last year's 2.6 percent, a report on the country's macroeconomic outlook said over the weekend. The global monetary easing will to some extent impose inflationary pressure on China, but the economy is not likely to see serious price hikes this year, said the report, compiled by Xiamen University and the Economic Information Daily, a subsidiary of Xinhua News Agency. The first half of the year will see a relatively loose stance to deal with the uncertainty of the global economy, with the growth rate of M2, a measure of money supply, to reach 15 percent.

Tencent's 51buy.com targets sales of 15 to 20 billion yuan

51buy.com, an online shopping website largely owned by Internet conglomerate Tencent Holdings Ltd, aims to register transactions totaling 15 billion yuan ($2.4 billion) to 20 billion yuan this year, more than double last year, according to a company official. Bu Guangqi, 51buy's CEO, said the website aims to "strengthen its position as one of the top three players" in China's business-to-customer market this year. Last year, the website's 3.5 million members bought goods worth 6.8 billion yuan on the website, almost tripling the total transaction volume of 2011.

Wenzhou property market curbs keep prices in check

Transaction prices for residential property in Wenzhou, Zhejiang province, are reported to have dropped in 2012, a signal that speculative investments have been curbed, according to sources at Wenzhou price bureau. Both the city's newly built property prices and trade volume dropped in 2012, with the selling prices of newly built properties declining 14.3 percent year-on-year. Average residential property traded at 25,886 yuan per square meter in 2012, a drop of 24 percent year-on-year.

Commercial housing oversupply to continue

The oversupply of commercial housing will not change in the short run in Guangzhou, the city's land resources and housing administrative bureau said. Commercial housing developments with sale permits in the Guangdong provincial capital totaled 7.167 million square meters, and those under construction reached 49.176 million square meters at the end of last year, the Information Times quoted the bureau as saying. Commercial housing prices have been rising rapidly in the city since the second half of last year.

Management change at Ctrip International

Changes in top management at Ctrip International Ltd, one of China's main online travel agencies, will take effect on March 1, the company confirmed over the weekend. Liang Jianzhang, one of the founders of Ctrip, will be appointed CEO and chairman of the company. "Liang will focus on the company's overall strategy and operation of main business segments," a Ctrip spokesperson told China Daily in an e-mail.

Domestic luxury products' consumption declines

Domestic consumption of luxury products hit a five-year low during the previous one-month period, which covers the Spring Festival holiday, according to the Beijing-based World Luxury Association. A report released by the association said that from Jan 20 to Feb 20, Chinese people spent $830 million on luxury goods at home, down 53 percent year-on-year, and less than one-10th of the consumption overseas. Overseas luxury products' consumption by Chinese people during the same period reached $8.5 billion, an 18 percent year-on-year rise.

Boeing-COMAC center to work on air traffic projects

Two new research projects on China's air traffic management will be conducted by the technology center co-established by Boeing Co and Commercial Aircraft Corp of China, the two companies announced on Monday. The Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center, which was launched in August, will work with Civil Aviation University of China to forecast the 30-year capacity of China's national airspace system.

Gome denies rumors of plans to sell shares

Gome Electrical Appliances Holding Ltd, China's second-largest electronic appliance vendor by revenue, has denied rumors that its largest shareholder plans to sell his holdings to any investor, including Best Buy Co. The Hong Kong-listed retailer said in an announcement that it is not aware of any plan by Wong Kwong-Yu, the company's controlling shareholder, to sell his interest in the company or have any discussions or negotiations with a potential purchaser.

SMEs given procurement contract priority

Beijing's municipal government has announced that small and medium-sized enterprises will be given priority in government procurement contracts, to encourage SME growth. Draft regulation from its legal affairs office said that it will now be required to purchase products and services from small and micro-businesses if the budget is less than 3 million yuan ($481,000). For those above 3 million yuan, small and micro-businesses will be considered first.

Chow film's revenue hit 990 million yuan

Shares in Huayi Brothers Media Group, the distributor of Stephen Chow's comedy Journey to the West: Conquering the Demons, rallied on Monday after it announced that the film had generated 990 million yuan ($158.7 million) in box office revenue since its premiere on the Chinese mainland on Feb 10. Huayi Brothers said it expected to earn pre-tax profits of 196 million yuan from the blockbuster.

China Daily - Agencies

(China Daily 02/26/2013 page14)