Updated: 2013-06-20 07:23
Taikang Life makes move into retirement residences
Taikang Life Insurance Co Ltd plans to invest 70 billion yuan ($11.35 billion) in a retirement community chain, according to the 21st Century Business Herald. The investment will account for about 15 percent of the company's total assets. "Since insurers can only allocate a certain percentage of total assets for real estate development, we will invest it all in retirement homes and hospitals," CEO Chen Dongsheng told the newspaper. He added that Taikang is now applying for a hospital certificate.
Outbound M&A transactions reach $454b since 2008
There have been 1,145 outbound merger and acquisition deals by Chinese companies since 2008 with a cumulative value of $454.5 billion, according to a report by ChinaVenture Group. The report said that the total value of outbound M&A deals in 2012 was $141.3 billion, which was the highest in the past five years. State-owned enterprises have been involved in the most M&A deals in the energy sector, the report said.
Apparel sales increase 6.6 percent in May
The China National Garment Association said on Wednesday that apparel sales in May rose 6.6 percent year-on-year, 5.5 percentage points faster than a month earlier. Inventories are so large that if all the garment factories closed, there would be enough for three years, it said. The China National Textile and Apparel Council cited two reasons for the high inventories. First, Chinese clothing brands have developed too fast in recent years and the purchasing power of potential customers has not increased. Second, some clothing companies raised production massively to reduce costs, leading to a "sameness" in products, which would-be buyers do not like.
PetroChina starts building first shale gas pipeline
PetroChina Co, the nation's largest oil producer, began construction of the country's first pipeline dedicated to transporting shale gas. The pipeline will extend 93 kilometers from Sichuan province's Changning block, and it will have a daily transport volume of 4.5 million cubic meters, China National Petroleum Corp, PetroChina's parent, said in an online statement on Wednesday. The pipeline will link with an existing pipeline that carries gas to Yunnan province. PetroChina didn't provide information on when it will be completed or on the production of the Changning block.
Frankfurt in pole position to become yuan trading hub
Germany's commercial links to China give Frankfurt an advantage over other financial centers competing to become yuan trading hubs, said Deutsche Bank AG's co-chief executive officer Juergen Fitschen. "We have an advantage in Frankfurt, in Germany: We're by far China's biggest trading partner in Europe," Fitschen said on Monday. "The question is if German clients will be ready to use this flexibility and win a competitive edge" by making and receiving more payments in yuan. Frankfurt, the eurozone's financial capital and home to the European Central Bank, is competing with Paris, Zurich and London in a bid to win Chinese business for its country's banks and exporters.
Molybdenum prices seen rebounding from 4-year low
China Molybdenum Co, the nation's second-biggest producer of the metal used to make steel, said prices may rebound from a four-year low in the second half amid falling production. "We expect to see increases in (molybdenum) prices from current levels," said Li Faben, general manager of the Henan province-based company. "Even with the weakness of the overall steel market, molybdenum demand is rising fast as China is shifting its steel industry structure to boost the production of specialty grades." He didn't give a specific price forecast. Molybdenum oxide has fallen 8.3 percent this year amid slowing economic growth in China and Europe that hit demand for commodities.
China Daily - Agencies
(China Daily 06/20/2013 page14)