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What's News [China Daily: Hong Kong Edition]
[September 22, 2014]

What's News [China Daily: Hong Kong Edition]


(China Daily: Hong Kong Edition Via Acquire Media NewsEdge) Penalties on Japanese auto firms for monopoly practices The National Development and Reform Commission has published the list of administrative penalties it imposed on 12 Japanese auto part and bearing companies for their price monopoly activities in China. The 12 Japanese companies are Denso, Mitsubishi Electric, Asian Industry, Mitsuba, Yazaki, Furukawa Electric, Sumitomo Electric, Nachi, NSK, NTN, JTEKT and Hitachi Automotive Systems. The companies were fined a total of 1.2354 billion yuan ($201.15 million), the highest since China's antitrust move was started about a year ago. Nachi and Hitachi Automotive Systems were exempted from paying the fines because they took initiatives to report to the NDRC about how related monopolizing agreements were reached and provided key evidence.



Gazprom to sign gas supply contract with China in Nov Russian energy giant Gazprom plans to sign a 30-year gas supply contract with China via the western route, the company's CEO Alexei Miller said. "Gazprom plans to sign a contract to supply China with 30 billion cubic meters of natural gas via the western route over 30 years," Miller told President Vladimir Putin during their meeting on Thursday. The China-Russia West Route natural gas pipeline project connects gas deposits in western Siberia and the northwestern part of China via Russia's Altai region. Gazprom is expected to sign the 30-year contract with China National Petroleum Corp in November.

Equities recover lost ground as cash crunch fears abate Share prices in China rose for the second day propelling a further rise in the benchmark Shanghai Composite Index, as a drop in money-market rates eased concerns of a cash crunch before new share offerings and national holidays. China CITIC Bank Corp led gains for lenders, rallying 5.5 percent. A gauge of funding availability in the interbank market fell for the first time in four days, and interest-rate swaps slid after the central bank cut a rate it pays on repurchase agreements to the lowest since January 2011. The central bank's rate reduction and cash injection to banks this week signal efforts to bolster the economy after new-home prices fell in 68 of 70 cities tracked by authorities last month.


Infosys inks partnership deal with Huawei Tech Infosys Ltd, the Indian tech major, said it has signed a global partnership with China's largest telecom equipment maker, Huawei Technologies Co Ltd, to offer enterprise customers cloud, big data and communication solutions. The companies did not say how much the deal was worth. Huawei and Infosys will also provide other enterprise-oriented services to combine Huawei's cloud infrastructure and global IT service expertise from Infosys, the companies said in a statement. Infosys, led by Chief Executive Vishal Sikka, has been planning to boost investment in cloud computing, smartphone apps and other new technologies to win more high-margin outsourcing contracts. Huawei and Infosys will explore setting up a joint lab in China to enable better delivery in all areas of the partnership, the companies said.

China trade prospects spark gains in Indian shares Indian equities advanced for a second day amid optimism trade ties with China will attract foreign inflows and revive economic growth. Sun Pharmaceutical Industries Ltd gained the most in two weeks after agreeing to buy from Merck & Co global rights for tildrakizumab, used to treat a skin disease. Hero MotoCorp Ltd advanced to a record after Chief Executive Officer Pawan Munjal said India's largest motorcycle maker will enter the US and Europe by 2016. Engineering company Larsen & Toubro Ltd added 2.4 percent in a second day of gains. China is likely to invest $100 billion in India over the next five years, the Economic Times newspaper reported.

En+ Group to double coal sales to China next year Billionaire Oleg Deripaska's En+ Group Ltd plans to almost double coal sales to China next year as President Vladimir Putin encourages Russian companies to turn eastward amid a standoff with the United States and Europe over Ukraine. En+, which manages Deripaska's commodity holdings, aims to increase Chinese coal shipments to 1 million metric tons in 2015, from about 600,000 metric tons this year, Chief Executive Officer Maxim Sokov said in an interview in Moscow. He reiterated that the company may participate in building a grid to channel electricity from Siberian hydropower stations to China. "The fact that Russia is turning to China due to the geopolitical situation certainly helps in our China-focused projects," Sokov said. Russia wants to attract cash from China into industries from housing to natural resources.

Hua Capital ropes in BofAto fund deal for OmniVision Hua Capital Management Ltd, a Beijing-based private equity firm, hired Bank of America Corp to provide funding for its $1.7 billion bid for US camera sensor-maker OmniVision Technologies Inc. Bank of America is also advising Hua Capital on the proposed takeover of OmniVision, whose camera sensors have been used in Apple Inc's iPhone. Hua Capital is leading a group of investors including a Shanghai government-owned company in an offer that values Santa Clara, California-based OmniVision at $29 a share. The proposed deal would represent an expansion of China's push to acquire chip industry capabilities. Last year, a Beijing-based university led the acquisition of Spreadtrum Communications Inc, a designer of chips used to connect smartphones to cellular networks.

SouFun Holdings continues to bleed as losses mount SouFun Holdings Ltd is posting the longest streak of losses since 2011 in US trading on concerns the new price incentives that the Chinese real estate website is offering homebuyers will erode profits. The company's American depositary receipts dropped 4.6 percent to $9.64 in New York on Wednesday, pushing the decline over eight straight days of losses to 23 percent. SouFun's smaller peer E-House China Holdings Ltd fell for a fifth day, closing the session at a two-month low. SouFun started a promotion last week offering buyers who purchase houses through its website as much as 150,000 yuan ($24,431) in assistance to cover their mortgage interest, renovation and management fees, details posted on the Beijing-based company's website show.

Hidili Industry to buy back only 60% of its dollar bonds Hidili Industry International Development Ltd, the Chinese coal miner at risk of defaulting on its debt, will buy back only 60 percent of its dollar bonds because banks won't lend money to purchase any more. Hidili earlier this week offered bondholders 68 cents on the dollar to buy back its $380 million of 8.625 percent notes due November 2015, as well as a 2-cent fee for consenting to amend the notes' terms. According to a stock exchange filing Wednesday, it will accept as much as $228 million if that amount is tendered by the offer's close date of Sept 29. "We decided on $228 million because that's the financing we could get from the banks," Cathy Huang, a Chengdu, Sichuan-based spokeswoman, said. "The majority is from bank borrowings." Asian conference to discuss policies for cleaner economy The 4th Asian conference of International Association for Energy Economics will be held at the Chinese Academy of Sciences between Friday and Sunday, discussing how the government can make policies to better promote current energy technologies, the regulation of energy markets and how to overcome an energy crisis. The Biannual Asian conference was organized by the Institute of Policy and Management of CAS and the China University of Geosciences, in cooperation with Shanghai International Energy Exchange Ltd and Tsinghua University. Fan Ying, director of the Center for Energy and Environmental Policy Research at the Chinese Academy of Sciences, said China - currently the world's largest emitter of carbon dioxide - has made efforts to combat air pollution and environmental destruction, and its non-fossil energy supply more than doubled from 2005 to 2013.

CCB to expand Contractual Saving for Housing venture China Construction Bank Corp is planning to expand its Contractual Saving for Housing institution to another two Chinese cities, the State-owned bank's president Wang Hongzhang said on Thursday. Wang was speaking at the 10-year anniversary of the establishment of Sino-German Bausparkasse, a joint venture between CCB and Bausparkasse Schwabisch Hall AG, Germany's largest Contractual Saving for Housing institution. He declined to identify the two cities. Sino-German Bausparkasse was founded in Tianjin in 2004, and it expanded to Chongqing in 2011.

CLSA plans more overseas expansion to sustain growth CLSA Ltd, the Hong Kong-based brokerage owned by CITIC Securities Co, will continue expanding overseas as it broadens revenues beyond its home region. Companies need a global presence to understand how events in other regions such as the United States and Europe affect Asian businesses, Jonathan Slone, CLSA's chairman and chief executive officer, said in an interview with Bloomberg Television. CLSA, which provides equity broking, research and asset - management services, has more than 1,500 employees in 21 locations across Asia, Europe and the US, its website shows.

China Daily - Xinhua - Reuters - Bloomberg (China Daily 09/19/2014 page14) (c) 2014 China Daily Information Company. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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