Govt and policies

China increases US Treasury holding

China increased its holding of US Treasury securities for the fourth consecutive month in May, the latest data from the US Treasury Department showed on Tuesday. China increased its treasuries holding by $10 billion in May, with the total holding up to $1.1022 trillion. China's foreign exchange reserves rose for the fifth month in a row in June, according to data from the country's central bank, the People's Bank of China. China's foreign exchange regulator, the State Administration of Foreign Exchange, attributed the rise of forex reserves in June to stable cross-border capital flow and the relative appreciation of non-US dollar assets.

Beijing's GDP up 6.8% in first half

Beijing's economy has firmed up in the first half of 2017, benefiting from steady development of the service industry and booming scientific and technological innovation, according to the Beijing Municipal Statistics Bureau on Wednesday. Beijing's gross domestic product expanded 6.8 percent year-on-year in the first half to 1.2 trillion yuan ($177.6 billion). The service sector expanded 7.2 percent year-on-year in the first six months, outpacing a 1.4 percent decrease in primary industries and 5.1 percent increase in secondary industries. Pang Jiangqian, spokeswoman of the bureau, said the production value of Beijing's high-technology industries accounted for 23.7 percent of the city's GDP in the first half. Research and development fees of large and medium enterprises in the first five months increased 5.1 percent year-on-year.

Guangzhou backs rental market

China's economic powerhouse Guangzhou will give tenants equal rights to education resources as homeowners, quashing a former rule. The regulation is part of a larger plan to increase the number of renters and curb high-flying property prices. In many cities across the country, property is more expensive in areas around good schools. The right to attend these schools, however, is limited to the offspring of homeowners, rather than tenants. "Improving the rental market is an important part of housing reform and improving people's lives. It is part of Guangzhou's long-term residential plan," said an official with the Guangzhou Housing and Urban-Rural Construction Committee. Under the new regulation, tenants who hold a Guangzhou hukou (household registration permit), or a skilled worker certificate, will be able to enroll their children in elementary and middle schools.

Companies and markets

Wanda to sell hotels to developer

Dalian Wanda Group will sell 77 hotels to developer R&F Properties instead of Sunac China, Sunac's chairman said on Wednesday. In the initial agreement announced last Monday, Wanda said it planned to sell tourism projects and the entire set of hotels in the country to Sunac for $9.3 billion. The three companies confirmed the alterations to the deal in a joint announcement and also said Wanda will now sell 91 percent of 13 cultural projects to Sunac China for 43.8 billion yuan, up from 29.58 billion yuan. Wanda Commercial, the property unit of Dalian Wanda, has 100 billion yuan of cash on hand, and will get 68 billion yuan from the Sunac and R&F deals, Wanda Chairman Wang Jianlin added.

Bayern Munich partners with DHL

Logistics company DHL announced on Wednesday it expanded cooperation with German football club FC Bayern Munich to tap into the video gaming market. DHL will work with Bayern on the launch of the game FIFA 18 which is scheduled to be released in late September. Details of the cooperation have not yet been disclosed, but the company said this drive is based on the massive potential of the computer games market and the e-sports sector in particular. In 2015, DHL helped Bayern to launch its online flagship store on Alibaba's Tmall Global and help the latter sell the club's official merchandise in China.

Hyundai to start up new plant

South Korean automaker Hyundai Motor Co said on Wednesday it will begin production at its fifth factory in China in August. The plant in Chongqing is part of its efforts to strengthen competitiveness by making compact sedans and sport utility vehicles tailored to Chinese tastes, the automaker said. "The Chongqing factory will produce high-quality new models for the Chinese consumer, and make Hyundai an automaker that encompasses eastern and western China," Vice-Chairman Chung Eui-sun said in the statement.

Ocean fashion festival scheduled

The First China (Qingdao) International Ocean Fashion Festival, supported by the China National Textile And Apparel Council, Huangdao District Government and the International Ocean Fashion Research Center, will be launched on Sept 7. The event will play the dual role of culture exchange and trading. Qingdao plans to hold the festival every September. Every year, about 4 billion Chinese choose to take a trip for relaxing and most of them prefer a coastal trip. Tourists' enthusiasm for beach is seen boosting tourism and the coastal economy.

Aston Martin recalls 111 vehicles

Aston Martin, the producer of some of the world's most expensive cars, will recall 111 vehicles in the Chinese mainland due to a faulty tire-pressure monitoring system. The affected models are imported DB11s manufactured between Nov 9, 2016 and May 26, 2017, said the General Administration of Quality Supervision, Inspection and Quarantine announced.

Around the world

Britain's inflation slips to 2.6 percent

Britain's inflation rate unexpectedly slipped back in June according to figures released by the Office of National Statistics on Wednesday. The country's Consumer Price Index fell from 2.7 percent in May to 2.6 percent in June, ending a steady and steep rise in inflation sparked off by the Brexit referendum vote in June last year. Inflation had been at 0.5 percent in the month before the Brexit vote, which however sparked a sudden and sharp market reaction that saw sterling fall against other currencies. This fall of about 11 percent in the sterling's value against the US dollar led to higher commodity prices and higher costs for imports, sending inflation upward. However, the fall in inflation is only temporary and will pose a problem for the central bank, the Bank of England, and its rate-setting Monetary Policy Committee, experts said.

Australian wine gets Chinese boost

Stronger demand for premium Australian wine in China has contributed to a 10 percent increase in Australia's overall wine export value, according to Wine Australia's export report released on Wednesday. China maintained its position as the No 1 export value destination for Australian wine in 2016-17, after export value to China grew by 44 percent to be worth A$607 million ($482 million). The total value of exports grew by A$201 million to A$2.3 billion. While the export value of wine to the United Kingdom fell, the report said the UK remained the No 1 destination for Australian wine exports by volume, indicating that UK consumers prefer cheaper Australian wines, while Chinese tastes are a little more expensive.

S. Korea's farm goods exports slow

South Korea's farm goods exports slowed due to weaker demand from China, a government report showed on Wednesday. Exports of farm goods and food to China reached $435.7 million in the January-June period, down 11.4 percent from the same period of last year, according to the Ministry of Agriculture, Food and Rural Affairs. The agricultural product exports to China kept a monthly downward trend, after growing 7.4 percent in March. The falling exports to China pulled down South Korea's overall farm goods exports. The growth rate of South Korea's exports of food and agricultural products fell from 11.3 percent in March to 6.5 percent in June. The ministry said the South Korean government needed to continue investment in China, which is the world's largest food market.

China Daily - Agencies