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  • 5G trials in Shanghai

    Shanghai Mobile has started selecting people to participate in 5G trials, offering Internet connection up to 50 times faster than current mobile Internet access.The participants, the first in the country, will get a free 5G phone, SIM card and mobile data allowance and will give feedback on their experiences, according to China Mobile, the leading mobile carrier in the city with more than 25 million subscribers. China has not yet issued 5G licenses but 5G networks already cover major cities, including Shanghai.

    Posted: by Shanghai Daily

  • Beijing ranks ahead of Shanghai and Shenzhen in list of world’s most innovative cities

    Beijing is the most innovative city on the mainland, ranking ahead of Shanghai and the tech hub of Shenzhen, according to JLL’s latest research of the top 20 innovation-oriented cities in the world. Hong Kong did not make the cut.San Francisco, with its robust start-up scene, topped the list, followed by Tokyo, Singapore, Beijing, and London, respectively. Shanghai and Shenzhen ranked 11th and 15th, respectively.JLL said that it expects to see more Chinese cities in the global top 20 as they…

    Posted: by South China Morning Post

  • China has a willing partner in India on the belt and road, but only on fair and open terms

    China’s multibillion-dollar infrastructure development plan, the Belt and Road Initiative, straddles three continents, with over 80 countries expressing an interest in the projects. It is estimated that China has already pumped US$200 billion into the initiative. In spite of US misgivings, many of its own allies, including the UK and Italy, have shown a willingness to be part of the initiative. There are indications that more members of the European Union will join.Many Asian nations are part…

    Posted: by South China Morning Post

  • EU slaps 5 banks with fine

    The EU’s powerful anti-trust authority yesterday fined five major banks, including Barclays and Citigroup, more than a billion euros for collusion in the massive foreign exchange currency market.The European Commission sanctioned Barclays, the Royal Bank of Scotland, Citigroup, JPMorgan and Japan’s MUFG Bank a total of 1.07 billion euros (US$1.2 billion) after finding that traders colluded to fix exchange rates using electronic chat rooms, a statement said.The commission said Swiss giant UBS received no fine as it revealed the collusion to the authorities.“These cartel decisions send a clear message that the commission will not tolerate collusive behavior in any sector of the financial markets,” said EU Competition Commissioner Margrethe Vestager.“The behavior of these banks undermined the integrity of the sector at the expense of the European economy and consumers,” she added.The decision involves two cases of forex manipulation, with the first known as “Essex Express ‘n the Jimmy” because all the traders (except Jimmy) lived in the county to the east of London, the commission said. The other one was called “Three-way Banana Split,” though the EU’s executive arm did not explain why.“Some of the traders created the chat rooms and then invited one another to join based on their trading activities and personal affinities, creating closed circles of trust,” the commission explained.The collusion took place between 2007 and 2013, the years of the financial crisis.

    Posted: by Shanghai Daily

  • Home prices rise across China

    Prices of both new and pre-occupied homes in cities across China continued to rise in April at a moderate pace.Average new home prices in China’s 70 major cities rose 0.6 percent in April, unchanged from the pace of growth in March, according to Reuters calculation of data released by the National Bureau of Statistics yesterday.On the whole, it logged the 48th straight month of price increases. Most of the 70 cities surveyed by the NBS still reported monthly price increases for new homes and the number was up to 67 from 65 in March, signalling to broaden strength in the market.On an annual basis, home prices rose 10.7 percent in April, picking up from a 10.6 percent gain in March.In the four first-tier cities on a month-over-month basis, new home prices climbed an average 0.6 percent last month, accelerating from 0.2 percent growth in March. Prices gained 0.5 percent, 0.3 percent, 1.1 percent and 0.4 percent, respectively, in Beijing, Shanghai, Guangzhou and Shenzhen.In the existing housing market, prices in the four cities advanced an average 0.4 percent, up 0.1 percentage point from March.Prices rose 0.6 percent, 0.5 percent and 1.1 percent in Beijing, Shanghai and Shenzhen, respectively, and shed 0.4 percent in Guangzhou, according to the bureau.In 31 second-tier cities, new home prices rose an average 0.8 percent last month, compared with 0.6 percent in March. Prices of preoccupied homes jumped 0.6 percent, easing from 1.2 percent growth in March.In even smaller third-tier cities, new home prices edged up to an average 0.5 percent from a month ago, easing by 0.2 percentage point from March. Prices of existing homes in the 35 cities increased 0.6 percent, compared with a 0.5 percent rise in March.Big gains in QinhuangdaoCountrywide, new home prices in Qinhuangdao, in northern Hebei Province, recorded the biggest month-over-month increase of 1.8 percent.On a year-on-year basis, prices of new homes in first- and second-tier cities both rose at a faster pace in April. They climbed 4.7 percent and 12.3 percent, respectively, up 0.5 percentage point and 0.1 percentage point from March. In third-tier cities, they gained 11.3 percent, compared with 11.2 percent growth in March.In the preoccupied residential market, prices climbed 0.8 percent, 8.3 percent and 8.4 percent in first-, second- and third-tier cities, respectively, compared with 0.5 percent, 8.2 percent and 8.4 percent growth registered a month earlier, the bureau said.Beijing has repeatedly called on local governments to take more responsibility in keeping the frothy market under control. Zhang Dawei, an analyst with property consultancy Centaline said the government is unlikely to allow unfettered gains in the property market.

    Posted: by Shanghai Daily

  • Lenovo denies rumour it has stopped supplying Huawei

    Lenovo, the world’s largest personal computer maker, dismissed rumours that it is caving to US pressure and suspending supplies to Huawei, the Chinese telecommunications equipment giant that was placed on a US trade blacklist last week.An internet user who identified himself as Hui Ji, pursuing doctoral studies at the Hong Kong University of Science and Technology, had sparked the online controversy after posting that the Beijing-based PC giant had suspended supplies of computers and servers…

    Posted: by South China Morning Post

  • Li Hejun, once China’s richest man, gets approval from shareholders to take troubled Hanergy unit private

    Hanergy Thin Film Power Group, the company whose stunning stock market performance once made its chairman the richest man in China, will be delisted from the Hong Kong stock exchange next month after shareholders approved plans to take it private.The company said in a filing to the exchange on Sunday that 97.25 per cent of shareholders had voted in favour of the privatisation scheme in a shareholder meeting a day earlier. The vote gives the green light for the firm to delist on June 11, and…

    Posted: by South China Morning Post

  • Stocks edge up on policy expectations

    China stocks edged up as supportive policies were expected to prop up the country’s economy amid external uncertainties.The benchmark Shanghai Composite Index was up 0.58 percent to end at 2,955.71 points. The Shenzhen Component Index added 0.37 percent to close at 9,293.32 points, while the CSI300 index rose 0.45 percent to 3,743.96 points.Turnover on the two major bourses totaled 512.8 billion yuan (US$74.5 billion), compared with the 512.7 billion yuan in the previous trading session.Shares in industrial sectors posted more gains than declines while shares in the agriculture industry continued their strong performance.Shares in Beijing Jingyuntong Technology Co Ltd and Ningbo Yunsheng Co Ltd jumped by the daily cap of 10 percent. Meanwhile, shares of Huawei suppliers took a nosedive after the Trump administration hit the telecom giant with sanctions on Wednesday.

    Posted: by Shanghai Daily

  • US-China trade war: here are Beijing’s options – and not one looks any good

    From the volume of bellicose rhetoric in China’s state media, you might think Beijing is digging in for a bloody fight to the finish in its trade conflict with the United States.But after the US administration this month jacked up import tariffs on US$200 billion of Chinese goods to 25 per cent, and threatened equal tariffs on another US$340 billion, the Chinese government faces a problem.The policy responses it is considering are all either impossible, impractical, ineffective or expensive…

    Posted: by South China Morning Post

  • What’s at stake for Europe Inc in a trade spat with Washington when growth stalls

    Europe’s listed companies are expected to generate 1.2 trillion euros (US1.35 trillion) in revenue from the United States this year, highlighting what’s at stake as global trade tensions grow and earnings and economic growth stall.Analysts and investors say that based on revenues, European companies are more vulnerable to a dispute than their competitors in the United States.US President Donald Trump is due to decide by Saturday whether to impose duties on car imports, potentially posing another significant threat to global growth and denting Europe’s prized auto sector.Washington’s renewed tensions with Beijing may distract Trump and delay a decision beyond the May 18 deadline, or he may crank up his protectionist push with a global trade war on two fronts.Last month, he also threatened to impose tariffs on hundreds of European goods, from cheese to ski suits, worth US$11 billion.The impact on Europe’s top firms could be profound — with slowing economic growth and some countries like Italy struggling with bulging budget deficits, the region may not be as resilient to a prolonged dispute as China has so far proven.In the past six months, the Chinese government has launched stimulus measures from tax cuts to boosting lending to shore up the world’s No. 2 economy as the trade spat rumbles on.“I’m much more concerned about trade for Europe than I am for China,” said Christophe Donay, head of asset allocation at Pictet Wealth Management.According to Europe’s top asset manager Amundi Asset Management, US sales average about 20 percent of MSCI Europe companies’ aggregate turnover, while European sales average about 14 percent of turnover for companies in MSCI’s US share index.Typically, Europe’s carmakers are considered particularly vulnerable to Trump’s protectionism.A 25 percent tariff could result in a 0.2-0.3 percentage points loss of export revenue and GDP for Germany, according to an analysis by Moody’s. The United States accounts for 13 percent of Germany’s car exports, the ratings agency has said.Measured by revenue, there’s a lot at stake for companies like Fiat Chrysler with US$45.3 billion in US revenues. But many, like Fiat, have their own US production plants, sheltering them slightly from any outright tariffs.Caroline Simmons, deputy head of the UK investment office of UBS Global Wealth Management, said she would expect the technology, energy and industrial sectors to be worst-hit by any further antagonism.Average European company exposure to the United States in those sectors ranges from 10 to 20 percent in terms of sales, compared with 33 percent for health care.UBS is underweight consumer discretionary in the euro zone, which includes autos, partly because of the trade tariffs.“The market is nervous about it and last year (the US-China spat) escalated more than people expected and the effect on the market was bigger than people had anticipated,” she said.Of pan-European STOXX 600 index companies, those in health care have the highest revenue exposure on average.An analysis by Refinitiv based on companies’ estimates of 2019 revenue shows they draw some 133.3 billion euros in revenue from the world’s No. 1 economy and top drug market.While health care has not been implicated in the tit-for-tat between Washington and Brussels so far, some investors worry about the potential fall-out from souring relations between the two economic powerhouses.“As these sectors are in normal times regarded as defensive, they may doubly disappoint if the US and Europe also engage in a tariff war,” said Ibra Wane, equity strategist at Amundi, in a note this week.The European health care index has risen 8 percent since the late December low, underperforming most other industries and lagging behind an 11 percent rise in the benchmark STOXX 600.Pharma and medical equipment companies from BTG to BB Biotech and Fresenius Medical Care are among the most exposed individual companies, with 67-90 percent of total sales derived from the US.Capital goods companies Ashtead and Ferguson are also high up on the list, with more than 80 percent of their sales made to the United States.

    Posted: by Shanghai Daily

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