China to cut import tariffs on Swiss watches

China agreed to cut import tariffs on Swiss watches by 60 percent in 10 years as the two nations seek to expand trade, a move that may boost sales by retailers such as Hong Kong-based Hengdeli Holdings Ltd. The reductions will take effect after the countries sign a free-trade agreement, which may take place in July, Assistant Commerce Minister Yu Jianhua said in a briefing in Beijing on Monday. The duties will be cut by 18 percent in the first year and around 5 percent in each of the following nine years, according to a transcript posted on the ministry's website.

CBRC report highlights jump in assets

Domestic assets owned by banking-related organizations in April exceeded 138 trillion yuan ($22.54 trillion), representing an annual increase of 17 percent, according to a report released by the China Banking Regulatory Commission on Monday. Debts were more than 129 trillion yuan, 16.8 percent higher than the previous year. Assets from large-sized commercial banks were valued at 59.36 trillion yuan, representing an annual increase of 8.7 percent. Commercial banks owned assets worth 25.61 trillion yuan, 30.1 percent higher over the year.

Yuan to become 'key currency' in 30 years

The yuan will become a key global currency in 30 years, said Chen Yulu, a monetary policy committee member at People's Bank of China. And the liberalization of the country's capital account, covering portfolio investment and borrowing, will be achieved between 2015 and 2020. "China needs to take steps to float the yuan worldwide," said Chen, who is also president of Beijing-based Renmin University of China, in a report about China's financial development path.

Jet fuel price expected to continue declining in June

The price of jet fuel in China is expected to continue to fall in June after two months of declines, China Business News reported on Tuesday. It is estimated that China Petrochemical Corp will reduce the price of No 3 jet fuel in June, from 6,970 yuan ($1,137.91) to 6,773 yuan per metric ton. However, as the cut in June will not exceed 250 yuan per ton, fuel surcharges will remain unchanged, the report said.

Li Xiaopeng takes helm at CIC supervisory body

China Investment Corp announced on Monday that Li Xiaopeng has replaced Jin Liqun as the chairman of the board of supervisors. The decision was made by the State Council on May 17, the CIC announcement said. The supervisory board of CIC is responsible for monitoring the behavior of the fund's directors and executives. Li was vice-president of Industrial & Commercial Bank of China since 2005 and holds a degree in economics from Wuhan University. CIC congratulated Jin for his five-year tenure as chairman of the board of supervisors.

Yongda predicts huge increase in Audi sales

China Yongda Automobiles Services Holdings Ltd, a distributor of luxury vehicles, said it aims to boost its sales of Audi-branded cars by about 1,300 percent in five to six years. Yongda this month signed an agreement with a unit of Volkswagen AG's China joint venture, giving Yongda priority for selling new models of Audi vehicles and taking control of certain dealerships. The Shanghai-based company aims to sell 50,000 units of the brand annually by 2018 or 2019, up from 3,500 last year, Yongda Vice-Chairman Wang Zhigao said.

Pernod expects sales growth to slow

Pernod Ricard SA, France's biggest distiller, forecast weaker growth in China as slower economic growth hurts demand and the government's austerity campaign weighs on entertainment spending. The maker of Martell Cognac and GH Mumm & Cie champagne expects "high single digit" growth in China in the year ending June 2013 and "high single-digit, low double-digit" growth in the midterm, Pierre Coppere, head of Pernod's Asian unit, told investors in Beijing on Tuesday. The company reported a 24 percent sales increase in China last year.

Money-market rate plunges; yuan hits new high

China's benchmark money-market rate fell the most in a month on speculation that accelerated yuan gains will attract more capital inflows, boosting cash supply. The People's Bank of China issued 7 billion yuan ($1.14 billion) of three-month bills at a yield of 2.9089 percent, unchanged for a sixth sale, according to a trader required to bid at the auctions. The Chinese currency, which has risen 1.6 percent in the past three months, touched a 19-year high of 6.1210 per dollar on Monday. "There are probably huge capital inflows, which are helping ease cash shortages," said Wang Huane, a senior bond trader at Qilu Bank Co in Jinan.

InterContinental Hotels Group eyes expansion

InterContinental Hotels Group PLC, the world's largest provider of hotel accommodations, plans to nearly double the number of hotels it manages in China even as the country's economy slows. The owner of the Holiday Inn and Crowne Plaza brands on Tuesday opened its 200th hotel in China. "We've seen the growth flatten out now, but you have to take a long-term view, which is what we do," Richard Solomons, the company's CEO, said. The company plans to expand to 100 Chinese cities from 70 cities now in the next three to five years, he said.

China Daily -Agencies

(China Daily USA 05/29/2013 page14)