Commerce Ministry's rules to support online retail

The Ministry of Commerce released a policy on Thursday to improve cross-border outbound e-commerce. The new policy will take effect on Oct 1. Cities including Shanghai, Chongqing, Hangzhou, Ningbo and Zhengzhou, which have already started pilot programs for cross-border e-commerce clearance, will be the first to implement the new policy. The policy defines outbound e-commerce governing bodies, sets a new method of supervising customs and specific statistics, supports regular earnings announcements by companies, and encourages banks and other payment institutions to provide payment services.

Automaker SAIC posts rise in H1 net profit

SAIC Motor Corp, China's largest automaker, posted a 6 percent rise in first-half net profit, boosted by strong sales at its joint ventures with General Motors Co and Volkswagen AG. SAIC made a net profit of 11.5 billion yuan ($1.88 billion) during the January-June period, compared with 10.78 billion yuan a year earlier, the Shanghai-based automaker said in an exchange filing on Thursday. SAIC sold 2.6 million vehicles during the first half, up 15 percent from the same period last year, outpacing industry growth of 12 percent. SAIC partners with General Motors and Volkswagen to sell cars, mini-vehicles and vans in China, the world's biggest automobile market.

Liquidity will go to targeted areas, central bank says

The central bank said on Thursday that added liquidity gained from securitized assets will help boost growth in targeted areas. The areas include credit support to small and medium-sized enterprises, agriculture, urban renovation, and infrastructure projects, according to a statement on the central bank's website. On Wednesday, an executive meeting of the State Council, China's cabinet, presided over by Premier Li Keqiang, gave the green light for high-quality securitized assets to be traded as a way to boost bank liquidity. The move will help ease risks for banks and quench liquidity demand.

Economists say credit supply weakened in August

Credit supply in August weakened further as the de-leveraging process in the financial sector continues, economists said. "Newly added credit in August may stand at 650 billion yuan ($106 billion), down from 699 billion yuan in new loans recorded in July," said Lu Zhengwei, chief economist with Industrial Bank Co. E Yongjian, a financial analyst with Bank of Communications, also predicted that new loans declined in August.

China Daily

(China Daily USA 08/30/2013 page17)