Month: June 2020

(Xinhua)16:52, August 06, 2019

NEW YORK, Aug. 5 — AMTD International, a Hong Kong-based investment bank and asset manager, extended solid gains on Monday after it commenced trading on the New York Stock Exchange (NYSE) under the ticker symbol HKIB.

As of the markets close, shares of AMTD International surged over 20 percent to settle at a bit over 10 U.S. dollars per share. The initial public offering, previously priced at 8.38 dollars per share, involved 20,759,700 American Deposit Shares (ADSs).

The company has granted the underwriters a 30-day option to purchase up to an aggregate of 3,113,955 additional ADSs from the company to cover over-allotments.

The listing marks the first Hong Kong homegrown company to be traded on the NYSE, and also the first Asian independent investment bank to be listed in the United States.

Calling the listing an important milestone in AMTDs growth, Calvin Choi, chairman and CEO of the company, said they are committed to connecting Asian clients to global capital markets.

This IPO will help us accelerate our strategy to expand into key global financial centers, diversify our business and further enhance the unique AMTD SpiderNet ecosystem of clients, business partners and investee companies, Choi said in a statement on Monday.

Its proprietary SpiderNet is an inter-connected network that positions AMTD as a super-connector between clients, business partners, investee companies and investors.

The company is expected to gather total gross proceeds from the offering of approximately 200 million dollars, if the underwriters choose to exercise their over-allotment option in full, according to the companys prospectus.

It plans to utilize the net proceeds to primarily invest in AMTDs business and infrastructure expansion, fund potential acquisitions and investments.

Total revenue of the company registered over 39 million dollars in the first quarter this year, with its backbone businesses centering on investment banking, asset management and strategic investment, according to the company.

With assets under management of 2.6 billion dollars as of March 31, AMTD International is currently the largest independent asset management firm in Asia that serves both Chinas regional banks and new economy companies, such as Xiaomi and Guangzhou Rural Commercial Bank, according to a report by independent research firm China Insights Consultancy.

For investment banking, the company has served a total of 41 IPOs in Hong Kong and the United States, with an aggregate offering size of 20.9 billion dollars, and 89 debt offerings with a total value of 37 billion dollars between October 2015 and July 2019.

(Xinhua)16:54, August 06, 2019

NEW YORK, Aug. 5 — The unexpected U.S. labeling of China as a currency manipulator has caught global financial markets off guard, fueling market panic over a long-term U.S.-China trade dispute and striking investor sentiment especially in the short run, a capital market expert has said.

The news was quite abrupt and surprised market participants, Tim Fang, head of global markets of Hong Kong-headquartered investment bank AMTD International, told Xinhua on Monday.

The Chinese yuan (CNY), both onshore and offshore, fell beyond seven against the U.S. dollar on Monday, in the wake of U.S. threats to impose an additional 10 percent tariff on 300 billion dollars worth of Chinese goods starting Sept. 1.

The Peoples Bank of China (PBOC) attributed the weakening of the currency to factors including unilateral and protectionist measures, as well as the expectation of additional tariffs on Chinese goods, according to an online statement.

The PBOC has the experience, confidence and capability necessary to keep the yuans exchange rate basically stable at a reasonable and balanced level, the statement said.

The central bank has considerable experience and policy tools in coping with exchange rate fluctuations and will crack down on short-term speculation and stabilize market expectations, according to the statement.

The Chinese yuan will be under downward pressure in a short term because of the ongoing trade war. However, it also has some space to fluctuate, Fang noted. I believe in PBOCs capability (in keeping yuan stable). Im not very concerned, as China has (adequate) foreign exchange reserve.

In the medium term, Fang expressed optimism on the possibility of the Chinese yuan to rebound, given the countrys relatively rapid economic growth rate.

Fang further pointed out that global investor sentiment would be battered in the short run, as nobody wants to see trade tensions to have deteriorated.

In the long term, the senior market insider remained bullish on the overall Chinese economy, thanks to its constantly improving economic system.

Chinas economic system has been undergoing (positive) changes. The country has been transforming from a manufacturing-based economy to a consumption-led economy, he said.

He added that the Chinese market has enjoyed enormous growth potential due to its magnitude, despite short-term volatilities and risks, as driven by consumer spending and the booming trend of consumption upgrading.

Im quite confident (in domestic consumption), Fang noted. Over the past decade, China has become a pioneer in lots of sectors around the world, in particular finance and technology, for example, online payment.

So, I believe Chinas spearheading efforts on technological innovation will boost consumption, increase employment opportunities and create new industries, he said.

(Xinhua)07:31, August 07, 2019

Chinas State Council, or the cabinet, has issued an overall plan for the new Lingang area of the China (Shanghai) Pilot Free Trade Zone.

The new area will be set up to the south of Dazhi River, east of Jinhui Port, and south of Xiaoyangshan Island and Pudong International Airport in Shanghai, says the plan.

The district launched first is to cover an area of 119.5 square kilometers, it says.

According to the plan, the new section will match the standard of the most competitive free trade zones worldwide and implement opening-up policies and systems with strong global market competitiveness.

The new area will facilitate overseas investment and capital flows, and realize the free flow of goods, according to the plan.

The area will be built into a special economic function zone with global influence and competitiveness, to better serve the countrys overall opening-up strategy, it says.

By 2025, the Lingang area will have a relatively mature institutional system of investment and trade liberalization and facilitation. By 2035, it will be built into a special economic function zone with strong global market influence and competitiveness, becoming an important platform for the country to integrate into economic globalization.

The addition of the Lingang area is a major strategic decision made by the Communist Party of China Central Committee to further opening up, Vice Commerce Minister Wang Shouwen told a press conference Tuesday.

It also demonstrates Chinas clear stand to adhere to all-round opening up in the new era and an important measure taken to actively lead the healthy development of economic globalization, Wang said.

An institutional system with investment and trade liberalization at its core will be established in the area, Wang said.

It will be supported in promoting investment and trade liberalization and facilitation, including free flow of investment, trade, capital, transportation and employment, the plan says.

According to the plan, a tax system and policy with international competitiveness will be implemented in the area.

Income tax shall be levied at a reduced rate of 15 percent within five years from establishment for qualified enterprises engaged in manufacturing and RD in key fields including integrated circuits, artificial intelligence, biomedicine and civil aviation, says the plan.

China will study and implement subsidy policies for the balance of personal income tax on overseas talents, and explore tax policy arrangements for pilot free trade accounts under the prerequisite that they do not lead to tax base erosion and profit shifting, it says.

The area will improve risk prevention and safety supervision and set up an open industrial system with global competitiveness, according to the plan.

It will strive to become a business cluster for international businesses, cross-border financial services, frontier technology research and development and cross-border services trade, and speed up the industrial upgrading of existing companies.

The plan says the new area will be granted greater administrative power for self-development, self-reform and self-innovation, and regularly promote its experience to spearhead a new round of reform and opening-up of the Yangtze River Delta.

The government will support the new area to foster more mature institutional and administrative systems and motivate market entities to participate in the international market, said Wang.

(Xinhua)07:53, August 07, 2019

BEIJING, Aug. 6 (Xinhua) — The U.S. Treasurys decision to label China a currency manipulator is totally wrong, a deputy central bank governor said Tuesday.

The label not only violates the common sense of economics and international consensus but fails to meet the quantitative criteria for the so-called currency manipulator set by the U.S. Department of the Treasury, said Chen Yulu, deputy governor of the Peoples Bank of China (PBOC).

China has never resorted to competitive devaluation and will not use currency as a tool for competition, according to Chen.

During the 1997 Asian financial crisis and the 2008 global financial crisis, China was committed to keeping the currency stable, which contributed tremendously to the global economic recovery and stabilization of the international financial market, Chen said.

Since Chinas currency reform in 2005, the yuans nominal exchange rate and real exchange rate have appreciated around 40 percent. Meanwhile, the countrys current account surplus declined to 0.4 percent of the GDP of 2018, down notably from 9.2 percent in 2005, he said.

The yuans depreciation since the beginning of August should be attributed to market fluctuations caused by the changes in global economic climate and escalation of trade frictions, Chen said, stressing that the devaluation, which is decided by market forces, is completely unrelated to so-called currency manipulation.

The trade disputes provoked by the U.S. have triggered various fluctuations in the global financial market and at the same time brought volatility to both the U.S. financial market and the U.S. dollar index since 2018, Chen said.

We hope that the U.S. side should show respect for the truth and resolve the economic and trade disputes with China in a more reasonable and pragmatic way before it goes too far on the wrong path, he added.

(Xinhua)09:51, August 05, 2019

BEIJING, Aug. 4 — Chinas booming tourism market has helped foster new career opportunities as peoples travel demands upgrade, the Peoples Daily overseas edition reported earlier this week.

New jobs such as travel video creator, private travel planner and tour guide that can be filled online are picking up popularity among freelancers, some of whom might not have a travel work background, according to the newspaper.

Zhoima and her husband used to run a snack shop in Daocheng County of Ganzi Tibetan Autonomous Prefecture in southwest Chinas Sichuan Province. The business barely allowed them to make ends meet.

As short video platforms thrive in China, Zhoima has turned herself into a content creator by posting videos of natural sceneries and food unique to the region.

Now the couple are preparing their residence to offer homestay service to tourists and followers who want to experience the life demonstrated in Zhoimas popular videos.

Xing Shuangqing had been working as a tour guide with a traditional travel agency for nearly two years. After he noticed the increase in independent tours and the rising demand for customized tourist products, he changed his job to be a private travel planner based in Beijing to help tourists learn and see more about the city.

Xing told the newspaper that he believes such new types of travel jobs can survive in the new round of technological innovation.

Artificial intelligence cannot replace humans in providing customer-friendly and interactive travel experiences, Xing was quoted as saying.

Statistics from the Ministry of Culture and Tourism showed that Chinas tourism sector created 79.9 million direct and indirect jobs in 2018, accounting for nearly 10.3 percent of the total employed population.

(Xinhua)09:59, August 05, 2019

FUZHOU, Aug. 4 — Chinese companies are tapping new opportunities in emerging industries including 5G technology and green energy.

Kunshan Q Technology, located in eastern Chinas Jiangsu Province, is a leading manufacturer of cameras and fingerprint recognition modules for cell phones and tablets. It has ramped up technological innovations as the company looks to the countrys huge 5G market.

You need a new phone to enjoy the high-speed connectivity of 5G. And it wont take long for 5G smartphones to take over the market, which will unlock enormous potential, said Terry Liu, deputy operating general manager of the company.

In early June, China granted 5G licenses for commercial use, marking the beginning of a new era in the countrys telecommunications industry.

Affordable 5G phones have started to hit the market as the domestic market leaders like Huawei and ZTE have rolled out their 5G handsets.

Liu has witnessed the number of cameras installed in a single phone increase from only one to four or five and the resolution from two megapixels to 48 megapixels nowadays, which made him realize that the demand for high-quality products may help boost the sustainable growth of the market.

There will be more cameras with higher resolutions on phones in the future, Liu said. Our confidence also comes from the continuing upgrade of electronic devices.

While trending toward high-tech like 5G, artificial intelligence and big data have also opened up new possibilities. Some enterprises in the manufacturing sector are gaining steam from clean energy, as China looks toward a greener economy.

Snowman Group, a manufacturer of industrial and commercial refrigeration and cold storage units, now finds itself in an influential position on the track of the new energy vehicle industry.

Headquartered in Fuzhou, eastern Chinas Fujian Province, the company has developed into a major developer and producer of high-level compressors through global mergers and acquisitions. It is the owner of a number of prestigious compressor brands including SRM from Sweden and RefComp from Italy.

We noticed the SRM had been developing air compressors used in hydrogen fuel cells since the 1990s, so we decided to go one step further to tap into the hydrogen vehicle market, said Lin Rujie, the companys deputy general manager.

It has inked deals with 21 automakers and engine companies including Dongfeng Motors and Yutong Bus to supply air compressors for hydrogen vehicles. The company has also developed a hydrogen bus prototype by cooperating with bus manufacturer King Long Motor.

We expect the mass production of our hydrogen-powered buses within this year, said Lin. It will be a very positive momentum to our growth.

Analysts believe that China has huge potential in developing hydrogen energy and Chinas development of the hydrogen industry is also in accordance with the global strategy on energy transmission.

According to this years government work report, China continues preferential policies on the purchase of new energy vehicles and facilitates the construction of charging and hydrogenation facilities to boost the automobile industry.

(Peoples Daily Online)11:44, August 05, 2019

(Photo/Xinhua)

Chinas sharing economy has expanded continuously over recent years, thanks to the publics active participation, governmental policy support and mature business mode.

The transaction volume of the sector has grown by 40 percent every year since 2016. Last year, transactions in the sharing economy totaled 3 trillion yuan, with 760 million people participating in the sector.

The sound growth momentum of the sector has driven the development of relevant areas such as travel, accommodation, and catering services. From 2015 to 2018, the three divisions grew by 1.6 percentage points, 2.1 percentage points, and 1.6 percentage points, respectively, by joining the sharing model.

Chinas 1.4 billion consumers have a growing need for new business models and new types of consumption, said Hong Qunlian, an economics researcher, adding that the higher penetration rate in mobile phone usage and new technologies have helped involve more people in the sharing economy.

China encourages creative, inclusive and prudent development of its sharing economy.

The country will foster new growth areas and drivers of growth in medium-high end consumption, innovation-driven development, the green and low-carbon economy, the sharing economy, modern supply chains, and human capital services.

Chinas sharing economy emerged, grew and prospered from 2011 to 2018. Hong said the supervision system must be improved to guarantee the healthy development of the sector.

(Xinhua)11:01, August 05, 2019

SAN FRANCISCO, Aug. 2 — Any attempt to decouple the United States from China economically and technologically will surely undermine innovation and hurt cultural exchanges between the two countries, a senior Silicon Valley investor said Friday.

Although both the United States and China have their due concern about technologies that impact their national security, 98 percent of all technology does not involve security and only involves commerce and lifestyle, Steve Hoffman, a veteran investor in Silicon Valley, said in an exclusive interview with Xinhua.

In real issues like health, I dont think these things should be separated, and if you separate these things, it will wind up causing a slower innovation, he said.

Economic and technological separation between the U.S. and China will hurt both economies and wind up really hurting universities that exchange knowledge and research centers in our ability as a human race to make progress, Hoffman said.

The Silicon Valley entrepreneur was commenting on an announcement by U.S. President Donald Trump on Thursday to place additional 10 percent tariffs on remaining 300 billion U.S. dollars worth of Chinese imports starting on September 1.

Since Trump initiated tariff disputes with China last year, some people in Washington have been trumpeting decoupling American companies and their technologies from Chinas supply chains, which aimed to split apart the worlds two biggest economies.

Hoffman called decoupling of science and technology a shame.

Its a shame for the world. All the worlds universities and research centers share fundamental information and knowledge about DNA, about cancer, about extending our lives, about ways to combat climate change, and about business and commerce, he said.

Hoffman, who is also CEO of Founders Space, a leading incubator and accelerator in Silicon Valley, and has successfully facilitated many hi-tech startups in China, said the new round of tariffs will exert a much stronger impact on big companies in Silicon Valley than smaller startups.

Right now, big companies like Apple, Intel and Microsoft sell their products into China. If China retaliates in an escalating trade war, they will pay the price, he said.

He noted that China sits at the center of the world economy, and it is at the center of the global supply chain — from electronics to textiles, from IT to cars and car parts.

There are parts for all sorts of different manufactured goods made in China, even though the goods may be made in Indonesia, even though the final product may be assembled here in the U.S., those parts are coming from China, he said.

Economic separation and tariffs will push up those prices proportionally, and then American consumers will suffer and pay for the rising prices, said Hoffman.

Im working in Silicon Valley and working with all of those American startups as well as Chinese startups. For my business, I personally hope that at the end of the day the trade war will end soon, he said.

(Xinhua)07:27, August 06, 2019

BEIJING, Aug. 5 (Xinhua) — China said it would temporarily not rule out the possibility of levying additional tariffs on imported U.S. farm produce with deals made after Aug. 3, and related Chinese companies have halted purchases of U.S. farm produce, according to the National Development and Reform Commission and the Ministry of Commerce Monday.

The move came after the U.S. plan to impose additional 10-percent tariffs on 300 billion U.S. dollars worth of Chinese imports, which seriously violated the consensus reached by the two heads of state in Osaka.

With a huge market, China is a promising destination for high-quality U.S. agricultural products, official sources said, hoping that the U.S. should earnestly implement the consensus reached in Osaka and be committed to fulfilling its promises to create necessary conditions for bilateral agricultural cooperation.

(Xinhua)07:47, August 06, 2019

BEIJING, Aug. 5 (Xinhua) — Six new medicines for the treatment of malignant tumors have been approved to enter the Chinese market in the past two years, offering more choices for patients, according to the Department of Major Science and Technology Project of the Ministry of Science and Technology.

The six new drugs are classified as type-1 medicines in China, which means they are innovative with new structures and new mechanisms and have never previously been marketed either at home or abroad.

The newly approved medicines are used for treating malignant tumors such as lung cancer, breast cancer, rectal cancer, melanoma and lymphoma.

The new anticancer drugs are an outcome of a key science and technology project to develop major new medicines launched in 2008.

Before the start of the project, only five type-1 medicines were approved in China over a period of 23 years, while a total of 44 type-1 medicines have been approved since the launch of the project.

Chen Kaixian, deputy technical director of the project and an academician of the Chinese Academy of Sciences, said the new medicines have filled the gap of clinical treatment in China, and promoted the reduction of the price of similar drugs in the market, providing affordable drugs and new hope for Chinese patients.