German automaker Volkswagen will tie up with its Chinese partner FAW to introduce more budget models. CFP

Auto

VW brand tie-up with FAW on way

Volkswagen AG, Europe's largest carmaker, plans to produce cars for a new budget brand in China with its joint-venture partner FAW Car Co, a source familiar with the matter said. VW aims to introduce the new low-cost marque in the world's largest auto market in about three years and may eventually expand it to more than one model, said the source, who asked not to be identified.

Imported car prices fall 3.4 percent

Prices of imported cars last month in China fell the most in five months, adding to signs that demand for luxury products is slowing because of a government campaign to rein in lavish spending by public servants. Average prices of imported cars fell 3.4 percent from a year earlier, said Cheng Xiaodong, head of autoprice monitoring at the National Development and Reform Commission, China's top economic planning agency. There was a 0.2 percent rise for locally made passenger vehicles.

Finance

SAFE sets up New York operation

The State Administration of Foreign Exchange has set up an operation in New York to make alternative investments in the United States, the Wall Street Journal reported. The new operation, which will focus on private equity, real estate and other assets, is an effort by China's foreign-exchange reserves manager to diversify away from US government debt, the newspaper said. SAFE has sought to vary its portfolio in the past year by buying European assets and Japanese stocks, the paper said.

UBS cool on prospects for Chinese growth

UBS has downgraded China's GDP growth forecast from 8 percent to 7.7 percent this year and 7.8 percent next year. Economic indicators have been relatively weak this year, it said in a research note, including lower rates of consumption, slower wage growth in recent quarters, the government's frugality campaign, a drop in export demand, and, most importantly, strong credit expansion failing to generate expected increases in investment. "While some of the weakness may be transitory, increasing evidence suggests that growth will be weaker than previously envisaged," said Wang Tao, an economist with UBS.

China reduces US debt holdings

China, the United States' top foreign creditor, slightly reduced holdings of US Treasury securities in March despite an overall increase in demand among foreign investors, according to data published on May 15. The Treasury Department said China reduced by a modest 0.1 percent its holdings of US government-issued debt to $1.25 trillion, and the No 2 creditor, Japan, cut its holdings by 0.1 percent to $1.11 trillion.

Corporates set to seek more funds

Chinese corporate borrowing will probably exceed that of US companies within the next two years, Standard & Poor's says. Non-financial institutions from the world's second-largest economy will need $18 trillion of debt during the five years ending 2017, the ratings company said in a report on May 14.

Energy

Indian firm big buyer of Chinese oil

China International United Pe-troleum & Chemical Co, known as Unipec, and Morgan Stanley sold crude cargo for July to Indian Oil Corp, the country's biggest refiner, said three traders who asked not to be identified because the information is confidential. Indian Oil bought about 1 million barrels each of Nigerian Akpo and Angolan Hungo crude from Unipec and 1 million barrels of the Libyan Mellitah grade from Morgan Stanley, the traders said.

Trade

Greece orders 142 Chinese vessels

Greek shipowners have placed orders for 142 vessels in Chinese shipyards, as the two countries continue enhancing trade and commercial ties. The orders, signed last month, acounted for more than 60 percent of recent global orders by Greek shipowners, said Greek Shipping Minister Kostis Moussouroulis. The technological competence of Chinese shipyards has improved considerably, making them more appealing, even as global prices hit one of their lowest points in recent years, Moussouroulis said.

Commodities

New round of sugar buying to start

China will start the second round of state sugar buying with a target of 300,000 metric tons, says the National Development and Reform Commission, the country's top economic planning agency. Sugar pro-duced after January will be bought for 6,100 yuan ($990; 774 euros) a metric ton, the commission said. The official buying period started on May 17. The first round of sugar buying occurred in December, with 1.5 million tons bought.

Education

Plastics firm signs university agreement

Borouge, a leading provider of plastics solutions, signed a partnership agreement with China University of Petroleum on May to extend its sponsorship program to five universities.

Through its scholarship progam launched in 2009, Borouge has established partnerships with leading Asian universities focusing on chemical and polymer science, engineering and technology, especially in China.

China Daily-Agencies

(China Daily 05/24/2013 page14)