Auto

Infiniti profitable in 3-4 years: Nissan

Nissan Motor Co expects its luxury Infiniti business to become profitable in three to four years as it begins production in China and introduces entry-level vehicles to attract customers. Infiniti, which last year relocated its headquarters to Hong Kong from Japan, plans to start building cars in China in the third quarter of 2014 and for global sales this year to rise at least 10 percent to about 200,000 units, President Johan de Nysschen told Bloomberg. "We really have been a US-centric brand. The future has got to be for us to look at China," he said.

GM buys back stake in SAIC joint venture

General Motors Co, which runs 12 joint ventures in China, said it has repurchased a 1 percent stake in its joint venture with Chinese partner SAIC Motor Corp Ltd. The move will bring GM's ownership of Shanghai General Motors Co Ltd back to 50 percent, according to a filing with the US Securities and Exchange Commission on Feb 15. GM paid $119 million (88.7 million euros) for the 1 percent stake, exceeding its share of the 1 percent interest in SGM's net assets by $82 million, which comprises the plant, property, equipment and intangible assets, the filing showed. In February 2010, GM sold the 1 percent stake to SAIC for $85 million.

Geely leading China bids for US' Fisker

China's Zhejiang Geely Holding Group is favored to secure a majority stake in US electric-car maker Fisker Automotive, Reuters reported, citing two sources familiar with Fisker's search for a strategic investor or partner. Fisker, the Anaheim-based plug-in hybrid maker, is currently weighing bids from two Chinese automakers: Geely, the owner of Sweden's Volvo, and state-owned Dongfeng Motor Group Co.

The two sources said both offers, which Fisker received in the past three weeks, were worth between $200 million and $300 million. A deal would give the suitors a majority stake in the southern Californian company, they said. The sources, who are close to Fisker, said Geely appeared to be the preferred suitor.

Finance

China fund invests in Moscow Exchange

China Investment Corp, the country's sovereign wealth fund, has invested in the pre-IPO of the Moscow Exchange, fund chairman Lou Jiwei said on Feb 17. "This is a financial investment rather than a strategic one, and we'll sell the investment at the appropriate time," Lou was cited by the Beijing Youth Daily as saying. He declined to provide the exact amount invested. The Moscow Exchange floated shares valued at $500 million (372.7 million euros) on Feb 15. Financial market sources told Reuters on Feb 14 that the flotation had attracted foreign investors, including CIC, while Russia's state private equity fund RDIF also helped to fill the order book.

China increases Treasury holdings

China remains the largest foreign creditor of the United States after it increased its holdings of US Treasury bonds by $19.7 billion (14.7 billion euros) in December, the US Treasury Department said on Feb 15. December was the third consecutive month in which China increased its holdings of US Treasury securities. A total of $1.202 trillion in US Treasury bonds were held by China at the end of 2012, compared with $1.183 trillion in November, and $1.151 trillion at the end of 2011. Japan, the US' second-largest creditor, also increased its holdings of US Treasury bonds to $1.12 trillion in December.

China Vanke makes first foray into US

China Vanke Co, the biggest developer listed on Chinese exchanges, has entered a property venture in San Francisco, its first foray into the United States real estate market. The company signed the deal on Feb 12, Chairman Wang Shi wrote on his micro blog on Sina Weibo. Vanke bought 70 percent of 201 Folsom Street, a mainly high-end residential project owned by Tishman Speyer Properties LP, Jinsong Du, a Hong Kong-based property analyst at Credit Suisse Group AG, wrote in a note to clients, citing information from Vanke. The development will comprise about 669 residential units, Credit Suisse said.

Investment

Metso buys Quzhou machinery foundry

Finnish engineering giant Metso Oyj has strengthened its presence in China with the acquisition, for an undisclosed amount, of the manganese steel foundry owned by Quzhou Juxin Machinery Co Ltd in Zhejiang province. The transaction covers the acquisition of Juxin's assets as well as Quzhou Chixin Machinery Co Ltd, which will be transferred to Metso along with the jobs of 275 workers. The transaction is expected to be completed within six months.

Trade

China urges US to lift sanctions

The Chinese government has expressed strong opposition to US sanctions on a Chinese military defense firm and urged they be lifted immediately. The United States imposed the sanctions according to its domestic laws, an act that has seriously violated norms governing international relations and harmed China's interests, the Ministry of Foreign Affairs said on Feb 11. China is strongly dissatisfied with and firmly opposed to the act, and it has lodged a solemn representation to the US side, spokesperson Hua Chunying said in a statement.

Energy

US regulators approve CNOOC-Nexen deal

US regulators have approved China National Offshore Oil Corp's $15.1-billion (11.3 billion euros) bid to buy Canadian-based oil and gas company Nexen Inc a deal that will be the biggest overseas takeover made by a Chinese company. The approval from the US Committee on Foreign Investment means the last major hurdle was cleared, CNOOC, China's largest offshore oil producer, said in a statement.

Before this, the deal has won approvals from Nexen shareholders, local courts in Canada, the Canadian government and the National Development and Reform Commission, China's economic planner. Progress on the deal will be publicized at a proper time, the statement said.

China Daily-Agencies

(China Daily 02/22/2013 page14)