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Govt and policies

China approves 9 IPO applications

The China Securities Regulatory Commission, the country's top securities market regulator, has approved IPO applications from nine companies. They will raise no more than 4.2 billion yuan ($620 million), the CSRC said in a statement. Four companies will be listed on the Shanghai stock exchange, one on the Shenzhen small and medium-sized enterprise board, and four on the ChiNext, China's NASDAQ-style board. The firms and their underwriters will confirm IPO dates and publish prospectuses following discussions with the exchanges. Under the current IPO system, new shares are subject to approval from the CSRC. China is gradually switching from an approval-based IPO system to a more market-oriented one based on registration.

More lock-up shares eligible

Lock-up shares worth around 34.8 billion yuan ($5.1 billion) will become eligible for trading on the Shanghai and Shenzhen stock exchanges this week. The amount is 38.6 percent more than last week, according to data compiled by Chongqing-based Southwest Securities. Lock-up shares from 35 listed companies will become tradable from July 17 to 21, with the peak share unlocking period falling on Monday, it said. Under China's market rules, major shareholders must wait one to two years before they are permitted to sell their shares.

Nation sees more entrepreneurs

China saw fast growth in entrepreneurship in the first half of this year with increasing registration of companies and self-employed entrepreneurs. The number of new market entities reached 8.87 million in the first half, up 13.2 percent year-on-year, with 49,000 new companies or self-employed entrepreneurs registered each day on average, according to the State Administration for Industry and Commerce. A total of 2.911 million new companies were registered in the first half, up 11.1 percent year-on-year, while 5.809 million self-employed entrepreneurs have been registered, up 14.8 percent year-on-year. Applications for trademarks also grew quickly in the first half, up 30.8 percent year-on-year.

Software copyright registrations soar

China received more than 400,000 new software copyright registrations in 2016, a year-on-year increase of 39.48 percent, according to a report. Eastern regions accounted for 80 percent of the total registrations in 2016, while western areas saw the fastest increase of 43.68 percent year-on-year, said the report issued by the Copyright Protection Center of China. The number of software copyright registrations in Guangdong province overtook those registered in Beijing, reaching first place nationally, the report said. Registrations for financial software in 2016 increased by 100.53 percent while registrations for games, education, medicine and cloud computing software saw growth of more than 40 percent year-on-year, said the report. China began to register software copyrights in 1992 in a bid to protect the rights of software owners.

Companies and markets

Bank opens to support startups

A bank opened on Sunday in Beijing's Zhongguancun area, which boasts active entrepreneurial activities, to support startups and innovation. Zhongguancun Bank, which gained approval from China's banking regulator in December, is co-sponsored by 11 listed companies in this area. It has registered capital of 4 billion yuan ($590 million). The lender mainly provides financial support to small and micro-sized scientific and technological firms. "Supporting science and technology is our most prominent feature," said Guo Hong, chairman of the bank, at its opening. Every year, more than 20,000 tech companies are set up in Zhongguancun. More than 60 unicorn firms valued at over $1 billion emerged in this area in the past two years.

Tech glitches may delay iPhone 8

Technological problem might force Apple to delay the release of its next flagship smartphone - iPhone 8, US news network the CNBC cited a report from Bank of America as saying. The report, written by Bank of America Merrill Lynch's two analysts, said the iPhone 8 "will ship 3-4 weeks delayed given technological issues which Apple and its suppliers are working through". The observation, according to the CNBC, was made after the two analysts' recent visits to Apple's suppliers in Asia. Apple has not released a launch date for the as-yet announced iPhone 8 but it typically releases new iterations of the device in September. The report said the problems are with the new fingerprint sensor and 3D-scanning technologies.

EasyJet planning Austria airline

British budget airline easyJet said it plans to set up a new airline headquartered in Vienna, Austria, having already applied for an Air Operator Certificate and an airline operating license. If granted the accreditation would give the airline permission to establish a third company wing, called "easyJet Europe" alongside its existing operations in Britain and Switzerland. All are to be owned by Britain-based parent easyJet plc. The move is being interpreted by Austrian media as a means for the airline to be able to continue to offer flights within the European Union in anticipation of the upcoming Brexit. In a news release the company did not state how many new jobs would be created at its Vienna operations, though it noted that no jobs would be shifted there from Britain.

Around the world

Croatia's rating stays at BB

Fitch Ratings has kept Croatia's rating at BB with a stable outlook, pointing out that Croatia's economy is benefiting from "favorable cyclical conditions", including its membership in the European Union, but at the same time warning that the restructuring of its largest private company Agrokor will slow down growth in 2017 to 2.6 percent. "The Croatian economy is benefiting from favorable cyclical conditions. Strengthening growth in regional trading partners, favorable wage and employment dynamics, robust tourism receipts and improved absorption of EU funds, resulted in real GDP growth rising to three percent in 2016 (the fastest since 2007), and are likely to support performance in 2017", local media quoted the latest Fitch report as saying. However, Fitch analysts believe the problems surrounding Agrokor will affect economic performance. Agrokor was placed into state administration in April and had debt of around 12 percent of GDP at the end of the first quarter this year.

Brazil indicators show recovery

Brazil's most recent economic indicators showed that the country is recovering from a two-year-long recession, Finance Minister Henrique Meirelles said. "At the moment, there is no sign the growth path has been reversed. Several June indicators show advances, like energy consumption and vehicle production," he said, adding that the Brazilian institutions are solid. "The economic team is focused on the economic reform, working day and night to ensure the country will resume growing," Meirelles said. Though Brazil's most recent GDP figures were positive, showing a mild growth of the economy, the country is still under the effects of a long economic crisis. Brazilian economists said last month that it was too soon to declare the country's two-year recession over, despite positive first quarter results.

Foreign investment in SEZ hits $1.7b

Foreign investment in Myanmar's Thilawa Special Economic Zone on the outskirts of Yangon is estimated to have hit $1.7 billion so far since the zone was launched four years ago, official media reported on Monday. Foreign investment in the SEZ was led by manufacturing sector at $773 million, followed by the import-export sector at $126 million, the logistics sector at $77 million, the service sector at $56 million, and the real estate sector at $30 million and the hotel sector at $12 million.

China Daily - Agencies

(China Daily USA 07/18/2017 page14)