Beijing Automobile to invest $2.45 billion in acquisition

China's State-owned vehicle manufacturer Beijing Automotive Group Co Ltd said on Wednesday it had agreed to buy smaller domestic firm Zhenjiang Automobile to help it meet its target to double production by the end of 2015. Beijing Auto did not disclose the value of the deal but said in a statement it would invest 15 billion yuan ($2.45 billion) in Zhenjiang Automobile to expand vehicle production. Beijing Auto aims to produce 3.5 million vehicles by the end of 2015, compared with 1.7 million last year.

China Railway to spend more than 50 billion yuan

China Railway Corp, a spin-off of the former Ministry of Railways, is starting to procure railway locomotives, passenger and freight trains this year, a source familiar with the matter said on Wednesday. The total purchase will amount to 50 billion yuan ($8.16 billion), the source said. This is the first procurement for the corporation after it was set up on March 14. In order to guarantee the openness, fairness and justice of the purchase, the company marketed the project publicly. It says qualified companies are welcome to participate in the railway company's business.

Shipyard Yangzijiang's profit slides in Q2 on tax, FX loss

Yangzijiang Shipbuilding Holdings Ltd, China's second-biggest private shipyard, posted a 7.6 percent decline in second-quarter profit because of higher tax and foreign exchange losses on euro-denominated contracts. Net income dropped to 812 million yuan ($133 million) from 878 million yuan a year earlier the company said in a statement to the Singapore Stock Exchange on Wednesday. Sales rose 12 percent to 4.42 billion yuan. Yangzijiang is among companies diversifying into offshore drilling and production as demand for new bulk vessels declines. The government has called for financial support, capacity control and a move into high-end products as part of a three-year plan to help the troubled shipbuilding industry.

Banks see 58% growth in assets under management

Assets managed by Chinese banks reached more than 22 trillion yuan ($3.6 trillion) at the end of 2012, up 58 percent year-on-year, according to a report released by the China Banking Association on Tuesday. As of 2012, the report said, 18 commercial banks, had been awarded licenses for asset management. The fees for such service increased by 26.8 percent from 16.8 billion yuan in 2011. Management refers to a service in which a financial institution holds securities on behalf of the client.

Hyflux 2Q revenue falls 25% on lower China contribution

Hyflux Ltd, Singapore's biggest publicly traded water company, reported a 25 percent year-on-year drop in revenue, citing lower contributions from China. Sales declined to S$138.4 million ($109 million), according to a statement to the Singapore Stock Exchange on Tuesday. Net income was S$17.7 million, higher than S$17.5 million a year earlier. The company's lower revenue from China was due to "macro factors," according to the statement. The water company withdrew from two water projects at the Hechuan Industrial park in Chongqing city because of a "foreseeable low off-take volume of the water', it said.

Brazil sets anti-dumping duties on Chinese tires

Brazil will levy anti-dumping duties on Chinese tires for five years, according to the Ministry of Commerce. The duty will be levied according to the weight of the tires and ranges from $1.08 to $2.17 per kilogram. The China Rubber Industry Association said a Brazilian anti-dumping investigation into Chinese tires started last year. The investigation mainly focused on 13- and 14-inch Chinese tires for cars. In 2008 and 2009, Brazil conducted an anti-dumping investigation and levied duties on cars imported from China.

China Daily - Agencies

(China Daily USA 08/08/2013 page15)