China Direct

Simmons & Simmons advises Samsung on listing of first crude oil ETF in Hong Kong

CBI member Simmons & Simmons announced that it had advised Samsung Asset Management (Hong Kong) Ltd. on the listing of the first crude oil exchange traded fund (ETF) ever in Hong Kong.

Please read more here.

European Chamber podcast on E.U.-China trade and economic relations

 

 

 

In a podcast with Paul Haenle, Director of the Carnegie-Tsinghua Centre for Global Policy, Joerg Wuttke, President of the E.U. Chamber of Commerce in China, discusses what he thinks the E.U. can expect in the coming years regarding its economic presence in China.

 

Mr. Wuttke notes that the main story in E.U.-China relations in 2015 was not simply an increase in trade but rather a complete shift in investment flows as China invested US$22 billion in the E.U. He expects this level of Chinese investment into Europe to continue, but he reasons that European investment in China may slow due to lower growth rates and other constraints.

 

Mr. Wuttke also comments on emerging international initiatives that China has put forward, such as the Asia Infrastructure Investment Bank (AIIB) and the Belt and Road.

 

Please read more here.

Magna Carta in Beijing - Rule of Law and Business Forum

 

An original 1215 copy of Magna Carta will be on display in Beijing from 13-15 October at the Renmin University of China Museum. This is part of a global series of events to mark the 800th anniversary of this foundational constitutional document that has exercised a huge effect on legal & political development in the UK, the United States, and around the world.

The CBBC and the British Chamber are delighted to be holding this forum explaining the historic significance of Magna Carta in the UK and beyond, and exploring how its ideas could influence China’s ongoing legal and political development in the wake of the commitment to Rule of Law that was enshrined at the CPC’s fourth plenum in 2014. In particular the forum will examine the significance of the Rule of Law in creating the environment needed for business to thrive.

This event is aimed at lawyers in both international and Chinese firms, and those from the wider business community who are interested in the legal underpinnings of China’s economic and commercial growth. It promises to be a fascinating evening that looks both back into history and forward into China’s future!

The confirmed speakers are:

Sir Martin Davidson, Chairman of the Great Britain China Centre and former Chief Executive of the British Council. The Great Britain China Centre engages extensively with China on legal development and Rule of Law issues.

Mark Gill, Executive Director of the Magna Carta 800th Anniversary Committee and former Head of Political Research at Ipsos MORI.

Please note that the Magna Carta itself will not be on display at this event – it can be viewed between 13-15 October at the Renmin University Museum. Details are available at the address below:

http://www.timeoutbeijing.com/event/Around_Town-Events/146212/Magna-Carta-Beijing-tour-and-seminar.html

Event Details:

Date: Tues 13 Oct

Time: 18:00-20:00

Event Type: Forum

Contact: james.zhu@cbbc.org.cn Tel: 010 85253111

Venue: Wuhan Hall, Kerry Centre Hotel. 1 Guanghua Rd

 

China's National Peoples Congress - an executive summary

 

 

Last week, the National People’s Congress (NPC), China’s annual session of parliament, kicked off its opening sessions, with around 3,000 delegates convening in Beijing for the 10-day summit. As one of the most important annual political gatherings in China, the NPC lays out the leadership’s plans and priorities for the coming months. Unsurprisingly, outcomes from the legislature will be closely scrutinised by global businesses keen to anticipate the future direction of the Chinese economy and plan accordingly. 

Of particular note, Chinese Premier Li Keqiang’s annual government work report, delivered to the NPC last Thursday, featured a number of important announcements related to the following areas:

• Lowered expectations for economic growth: China’s GDP growth target was lowered from 7.5% in 2014 to 7% this year, with Premier Li characterising the lowered expectations for economic growth as the “new normal”. Last year, the Chinese economy grew at its slowest pace since 1990, and the government is clearly accepting this lower rate of expansion as it continues to focus on restructuring the economy. Following Premier Li’s speech, the head of the National Development and Reform Commission (NDRC) emphasised that China will not introduce strong stimulus measures to boost economic growth this year.

 

• Supporting employment and job creation: Premier Li said that over 10 million jobs would be created in urban areas in the coming year. With the number of college graduates expected to reach nearly 7.5 million this year, job creation is a top priority for the government. Premier Li also pledged to help people who have lost their jobs due to structural adjustments or steps taken to reduce overcapacity to secure new employment.

 

• Improving environmental protection: As the government continues to focus on reducing pollution and improving environmental protection, energy intensity will be reduced by a target of 3.1% this year to cut emissions from major polluters.  

 

• Fighting corruption: Premier Li reiterated the government’s commitment to continue fighting corruption and pledged to tighten supervision over public funds and state-owned assets.

 

• Opening up China’s stock exchanges: Premier Li announced plans to link up the Shenzhen and Hong Kong stock exchanges on a trial basis, similar to the scheme launched between the Shanghai and Hong Kong bourses last November.

 

• New plans for infrastructure investment: China plans to invest more than RMB 800 billion in railway construction and another RMB 800 billion in major water conservation projects in 2015.

 

• Encouraging greater foreign investment: Premier Li vowed to further open up the service and manufacturing sectors by reducing the number of industries in which foreign investment is still restricted by half.

 

• Supporting economic growth through Internet applications: Premier Li announced an Internet-plus action plan, which aims to further accelerate the contribution of new Internet applications to the Chinese economy. McKinsey forecasts that Internet applications could fuel between 7-22% of China’s incremental GDP growth until 2025.  

Thank you.

PwC forecasts China will be world's no 1 retail market by 2018

 

CBI member PwC recently forecasted that China will become the world’s largest retail market by 2018, when it will be worth US$10.3 trillion.

http://www.pwccn.com/home/eng/pr_120215.html

CBI Member China news round up featuring Boeing, Pinsent Masons & Smith & Nephew

 

 

CBI member The Boeing Company recently delivered the first 777-300ER (Extended Range) to China Southern Airlines.

The new airplane is the first of 10 777-300ERs China Southern has on order with Boeing.

China Southern plans to operate its first 777-300ER on its new North America route, where it will be able to directly connect passengers in the southern region of China to the eastern coast of the U.S.

Zhang Zifang, Chief Operating Officer, China Southern Airlines, said, "The 777-300ER's long-haul capability is a perfect fit for our network expansion plans as it will enable us to serve our existing long-range markets more efficiently and open new routes in the future. The 777-300ER will support the development of Guangzhou as our main international hub and will be a vital part of our 'Canton Route' services."

Ihssane Mounir, Senior Vice President of Sales and Marketing for Northeast Asia, Boeing Commercial Airplanes, said, "We are honored to play a part in China Southern's growing success and proud to celebrate this milestone together. The 777-300ER is a great choice for China Southern. Its combination of efficiency, industry-leading reliability, and award-winning cabin design will continue to help China Southern generate more revenue and provide a superior passenger experience."

Please click here to read the full press release by Boeing.

CBI member Pinsent Masons recently announced that it had advised Beijing Jangho Curtain Wall Co. Ltd. (Beijing Jangho), a large-scale provider of façade solutions, on its acquisition of a 70% interest in Steve Leung Designers Ltd. (SLD), an interior design company headquartered in Hong Kong, for HK$350 million (£26.95 million).

Please click here to read the full press release by Pinsent Masons.

CBI member Smith & Nephew recently released its results for 2013, reporting that China, now its sixth-largest global market, delivered revenue growth of more than 30% last year.

Please click here to read the full results for Smith & Nephew. 

China's 3rd Plenum Update Nov 2013

On 09-12 November 2013, the Third Plenary Session of the Chinese Communist Party's 18th Central Committee, commonly referred to as the Third Plenum, met in Beijing to discuss the long-term goals of the new Chinese leadership.

The Third Plenum released a communiqué outlining a series of pledges on planned reforms, including:

• The "decisive" role of the market in the allocation of resources was highlighted in the document.
China will relax investment restrictions, accelerate the construction of free trade zones, and further
open up both coastal and inland regions.

Other plans include requiring state-owned enterprises to pay larger dividends to the government and allowing private-owned companies to play a bigger role in the economy. In addition, China will push forward the liberalisation of its interest rates and the free convertibility of the Renminbi (RMB).

• China will accelerate the development of a new agricultural management system and give farmers
stronger property rights.

• China will establish a comprehensive system designed to protect the country's ecological
environment, including improvements in land development, resource conservation, and
environmental protection.

• China will improve its judicial system and "ensure independence and fairness in courts and
prosecuting bodies".

• China will create a national security council that will deal with both domestic and international
security challenges.

Taylor Wessing LLP invites CBI members to China Event in London 27.11.12

  

Dear CBI Members,

China Direct is back after a busy week supporting the visit of the CBI's President, Sir Roger Carr, to China.

For member companies based in the UK and interested in learning more about the China market China Direct is delighted to announce that new member Taylor Wessing LLP will be holding a Seminar and Drinks Reception on Tuesday 27th November at their offices on New Street Square, London.

"Taylor Wessing will be hosting a seminar looking at the opportunities and  issues foreign companies face when entering and conducting business in China.

The event will include both a seminar covering key topics affecting companies in this region, including an update on the current economic and legislative trend, followed by a drinks reception. "

For more information please visit:

http://www.taylorwessing.com/events/details/china-seminar-and-drinks-reception-2012-11-27.html

To register directly kindly contact:  events@taylorwessing.com

 

Allen & Overy advise China Development Bank on Alibaba business

 

CBI member Allen & Overy recently advised China Development Bank Hong Kong branch on a senior debt facility of US$1 billion to Alibaba Group, China's largest e-commerce company, for its initial repurchase of shares from Yahoo!, which was valued at approximately US$7.1 billion.

Of this, Yahoo! received approximately US$6.3 billion in cash and US$800 million in preference shares in Alibaba Group.

China Development Bank Hong Kong bank was the only Chinese bank which provided the senior financing, alongside eight international banks which together provided a parallel senior debt facility of US$1 billion to Alibaba Group in support of the transaction.

Cindy Lo, Beijing-based banking partner at Allen & Overy, said, "Alibaba's repurchase of shares from Yahoo! is a landmark transaction for the technology sector in China, and the financing package for the repurchase transaction was the largest-ever private financing for a private sector Chinese company. We are delighted to have worked with China Development Bank in such a significant transaction."

Please click here to read the full press release by Allen & Overy.

National People's Congress 2012 - an analysis

 

[Image courtesy of www.apcoworldwide.com/china]

China Direct would like to thank CBI member APCO for kindly providing the following analysis of the recently convened annual National People's Congress in Beijing.

For more information and analysis please download below.

Download NPC_2012

Thank you.