Day: January 16, 2021

(Xinhua)14:57, December 12, 2020

BEIJING, Dec. 11 (Xinhua) — Chinas top securities watchdog launched a two-year campaign to enhance the corporate governance of listed firms on Friday, eyeing better governance structures and high-quality development of listed firms.

A key element of the campaign is self-examination and correction on the part of listed firms, requiring them to engage in rectification and reform, and effectively improving the system and rules of corporate governance, the China Securities Regulatory Commission (CSRC) said.

In response to the recent suspension of the initial public offering (IPO) registration of some enterprises, the CSRC said the decisions were made by the stock exchanges in accordance with laws and regulations, and there was no deliberate tightening of the IPO.

Supervision of the exit mechanism for listed companies will be strengthened, while the criteria for delisting will be fine-tuned, with the relevant procedures streamlined, said the CSRC.

(Xinhua)15:00, December 12, 2020

BEIJING, Dec. 11 (Xinhua) — With the shortage of automobile chips expected to linger, some Chinese auto makers need to brace for a short-term disruption to production next year, according to a local industry association.

A rise in chip prices is also likely, resulting from an increase in advance purchasing by companies along the industry chain and the difficulties of increasing production capacity in the short run, said Li Shaohua, an official with the China Association of Automobile Manufacturers (CAAM), in a recent interview with Auto Review magazine.

To navigate such a bottleneck, Chinese auto companies and chip makers need joint efforts in technological innovation and upgrading to stabilize production and bolster supply chains.

UNEXPECTED DEMAND

Computer chips are widely used in the automotive industry, being applied to crucial vehicle parts and functions, such as power systems, chassis control and advanced driver-assistance systems (ADAS).

However, the relatively conservative sentiments in global chip investment in recent years have triggered unbalanced supply and demand, while the COVID-19 pandemic has exacerbated the cautiousness in capacity investment, said Li, stressing that the automotive chip shortage is a common challenge facing the auto industry worldwide.

Since the beginning of this month, a few automakers have been hit by chip shortages to varying degrees, including SAIC Volkswagen and FAW-Volkswagen, both joint ventures between Chinese automakers and German auto giant Volkswagen AG.

Volkswagen Group China attributed the chip shortage in the auto industry to the uncertainties caused by COVID-19 and the full-speed recovery of Chinas auto market, according to an interview with the economic channel of the China Central Television.

Data from the CAAM shows that consumer demand saw a rapid rebound in the Chinese auto market in the second half of this year. Auto sales rose 12.6 percent year on year to 2.77 million in November, the seventh straight month to see double-digit growth.

Commenting on the unexpected surge in demand, Li said that the chip industry worldwide failed to adapt to the strong upturn in the countrys auto market in the second half, as COVID-19 has dealt a blow to major overseas chip suppliers.

In addition, the surging demand for chips for other purposes, such as those used in consumer electronics, also contributes to the shrinking production of automotive chips, Li added.

Chinas automakers heavily depend on chip imports for production. According to a report on Shanghai Securities News, 95 percent of the chips used in China-manufactured vehicles are imported from overseas.

Industry data also shows that chips for advanced sensors, in-vehicle networks, electric system, ADAS, automation and many other key car-manufacturing procedures are mostly imported, with self-made chips accounting for less than 10 percent.

MEETING THE CHALLENGE

Despite the disruption to production triggered by the shortage, Chinese car makers are stepping up measures to counteract the impact.

The measures being taken include re-adjusting the pace of production, advancing chip-purchasing schedules, seeking more suppliers and optimizing the supply-chain structure, according to Li.

Stressing that delivery to customers is not currently affected, Volkswagen Group China said in the aforementioned interview that it is monitoring the situation closely and coordinating with its headquarters and suppliers to cope with the shortage.

Chinese carmaker BYD said in an interview with the newspaper Beijing Daily that it can produce chips by itself and therefore is not affected by the shortage.

In September, the National New Energy Vehicle Technology Innovation Center initiated an innovation strategic union for the automotive chip industry. Gathering car manufacturers, chip suppliers, research institutes and industry organizations, the union aims to improve the industrys core competency and safeguard the stability of the industry chain through joint efforts.

International cooperation is also on track to boost auto-chip research and development in response to the global challenge. Imagination Technologies, a British semiconductor and software design company, has signed a joint-venture agreement with BAIC Group Industrial Investment Co., Ltd., a subsidiary of Chinese car maker BAIC Group, to establish an automotive semiconductor company for creating automotive chips.

(Peoples Daily Online)10:32, December 04, 2020

Aerial photo taken on Nov. 15, 2020 shows the view of Xiasi Ancient Town of Kaili in Qiandongnan Miao and Dong Autonomous Prefecture, southwest Chinas Guizhou Province. (Xinhua/Liu Xu)

China’s tourism industry, once hit hard by COVID-19, has walked out of the shadow of the pandemic, statistics from major travelling information and service companies show, Economic Daily reported.

Online travel agency Tongcheng-Elong said it has 246 million monthly active users, a rise of 5 percent compared with the same period last year. It also claimed to have witnessed an increase in revenue during the first three quarters of the year.

Ctrip, China’s largest online travel agency, saw a year-on-year increase of 20 percent in hotel bookings, and the profit margin of its operating revenue climbed by 24 percent, topping global listed travel companies.

Statistics also indicated that third- and fourth- tier cities have become major contributors to the recovery. Tongcheng-Elong said about 86.1 percent of its users were from smaller cities as of the end of September.

(Xinhua)17:21, December 09, 2020

XIAN, Dec. 9 (Xinhua) — A new China-Europe freight train route has been launched, linking the city of Ankang in northwest Chinas Shaanxi Province with Central Asian and European cities.

The first freight train on this route left Ankang Tuesday afternoon, carrying 43 TEUs of goods weighing more than 700 tonnes, including household appliances and natural slate.

The train first arrived in Shaanxis capital Xian, from where it is scheduled to reach Central Asia in eight days and Europe in 13 days via the Changan China-Europe freight route.

The Changan China-Europe freight train service saw more than 3,400 trips in the first 11 months of this year, almost double the figure for the same period last year.

(Xinhua)08:12, December 10, 2020

BEIJING, Dec. 9 (Xinhua) — China will adopt a host of policy steps to promote the scale and quality of the personal insurance sector and facilitate its steady development, to meet peoples diverse needs, the State Councils executive meeting chaired by Premier Li Keqiang decided on Wednesday.

It was agreed at the Wednesday meeting that further improving financial services and promoting the development of personal insurance is conducive to better serving peoples essential needs and facilitating economic and social development.

Chinas personal insurance has seen sound and fast development in recent years with commercial personal insurance reaching a considerable coverage nationwide, yet problems such as insufficient supply and low level of protection still exist, said the meeting.

The personal insurance sector in China has made notable progress in recent years, with insurance coverage continuously expanding and public awareness of risks steadily increasing. That said, the sophistication and coverage of Chinas personal insurance sector remain modest. This also indicates that China is a huge insurance market with enormous potential, Li said.

Attendees at the meeting emphasized the need to deepen reform and opening-up of the insurance sector, with a focus on optimizing supply and providing high-quality personal-insurance products, to meet peoples needs for health, old-age support and safety protection.

The development of commercial insurance shall be stepped up. Commercial medical insurance products that suit the needs and paying capacity of the elderly shall be developed. Insurance companies will be encouraged to incorporate medical expenses, within reasonable range yet outside basic medical insurance catalog, into insurance coverage.

We must focus on key areas, especially the medical insurance or commercial health insurance. More types of insurance targeting critical illnesses shall be supported and aligned with the basic medical insurance system as supplement to enhance critical illness insurance protection for urban and rural residents, the premier said.

Openness shall be extended in an orderly manner, and international cooperation strengthened, to promote the development of health insurance and provide better services. At the current stage, medical insurance remains a top priority to meet peoples growing demand for greater health, he said.

Commercial endowment insurance, which serves as the third pillar of Chinas pension system, will be put under unified standards and regulations, and its development will be stepped up. The protection function of commercial endowment insurance shall be intensified. Endowment insurance featuring convenient application, flexible payment and relatively stable earnings shall be supported, and pension annuity insurance products actively developed. The insurance sector is encouraged to participate in a pilot insurance scheme for long-term care.

Commercial endowment insurance shall be vigorously developed. In the past few years, new industries and new business models have emerged as China deepens reform of government functions and encourages entrepreneurial and innovation activities nationwide, Li said.

Suitable supplementary endowment insurance shall be developed to cater to the needs of people working in these businesses, as well as of those in flexible employment, to ensure a more reliable guarantee for the future. It will help sustain existing jobs and create new jobs. This is a major task, and breakthroughs shall be made, he said.

The long-term investment capabilities of insurance funds are to be enhanced, while the supervision of assets and liabilities will be strengthened, and risk prevention and control stepped up. Differentiated regulatory ratio shall be adopted for equity assets involving insurance fund investments, up to 45 percent of the companys total assets.

Insurance funding will be encouraged to participate in major construction projects, such as infrastructure and new-type urbanization, to better facilitate its role in driving the real economy. Special rectification regarding related-party transactions will be carried out, to resolutely deter illegal acts of misuse, arbitrage or embezzlement of insurance company funds.

Risk prevention and control must be enhanced on an ongoing basis to prevent speculative use of insurance funds. Greater efforts shall be made to address the difficulty in settling insurance claims and draw more people to participate in insurance schemes, Li said.

(Xinhua)10:46, December 10, 2020

BEIJING, Dec. 9 (Xinhua) — Renminbi-denominated cross-border trade settlement hit 633.8 billion yuan (about 97.06 billion U.S. dollars) in November, central bank data showed Wednesday.

Of the total, 445.8 billion yuan came from cross-border trade in goods, and 188 billion yuan came from cross-border trade in services and other current account items, said the Peoples Bank of China.

Yuan-denominated direct investment settlement stood at 313.1 billion yuan in November, with 88 billion yuan from outbound direct investment and 225.1 billion yuan from inbound foreign direct investment.

In 2019, yuan-denominated cross-border trade settlement amounted to 6.04 trillion yuan.

(Xinhua)10:57, December 10, 2020

SHENZHEN, Dec. 10 (Xinhua) — The 2020 Shenzhen Global Investment Promotion Conference has exemplified investors insight into the strong innovation capability of the high-tech hub in south Chinas Guangdong Province, with 242 deals signed, clinching contractual investments of 780 billion yuan (119 billion U.S. dollars).

Wang Weizhong, Party secretary of Shenzhen, attended the conference Tuesday as an investment promotion commissioner to introduce Shenzhens business environment, industrial development strategy, and layout of industrial development.

A total of 324 companies from a wide range of fields, including new-generation information technology, manufacturing, bio-medicine, new material, and finance, participated in the conference. About 40 percent of the companies were from 15 countries and regions including the United States, Japan, Britain, France, Germany and Singapore.

We value the strong innovation vitality of Shenzhen. With the strong economic development of the Guangdong-Hong Kong-Macao Greater Bay Area, we hope to establish an RD center here. At the same time, we are willing to bring more solutions to global markets with our innovation outcomes in China, said James Zhao, senior vice president of ABB China Ltd.

According to the Shenzhen commerce department, the city utilized over 7 billion U.S. dollars of foreign investment in real terms in the first ten months this year, up by 7.58 percent year on year.

Shenzhen celebrated the 40th anniversary of the establishment of the Special Economic Zone in October. Chinas supporting policies of developing the Guangdong-Hong Kong-Macao Greater Bay Area has sustained Shenzhens advantage as a popular destination for foreign investment.

(Xinhua)11:08, December 10, 2020

WASHINGTON, Dec. 9 (Xinhua) — China has pulled ahead in global trade despite disruption caused by the COVID-19 pandemic, as trade data indicated the countrys recovery from the pandemic, Fortune magazine said Wednesday.

Chinas foreign trade expanded 7.8 percent year on year last month, with exports jumping 14.9 percent year on year in yuan terms, the Chinese General Administration of Customs said Monday.

Chinas economy is in the midst of an impressive recovery from the global health crisis, with third-quarter GDP growth coming in at nearly 5 percent, the Fortune article said.

Meanwhile, Chinas export boom also reflected the impact of lockdowns on Western economies, which are producing and exporting less as a result — and relying more on foreign imports, it said.

The U.S. trade deficits with China continue to rise, while China is importing more American goods than before, Fortune said.