Shenzhen to invest CNY105 billion on anniversary
Aug-30-2010 By : agxadmin
Shenzhen Mayor Xu Qin said the city would invest CNY105 billion in 60 huge projects to celebrate the 30th anniversary of the establishment of the Special Economic Zone (SEZ), including cheap housing, schools, hospitals, infrastructure and industrial parks. “The special zone should … keep being special, being good, being innovative, being one-up and being the doer,” Premier Wen Jiabao said during an inspection tour. In June the expansion of the special economic zone from 395 sq km to 1,948 sq km was approved, which means it will be nearly twice the size of Hong Kong. City authorities saw that as a big gift, allowing them more power and opportunity for reform. Special policies allowed by the central government were the key to transforming Shenzhen from a small fishing village three decades ago into a modern city with almost nine million people. The city now plans to become a pioneer in political and civil reform, as it is no longer special in economic terms. It plans to become a world-class metropolis by 2020.
CNPC and Shell complete Arrow take-over
By : agxadmin
China National Petroleum Corp (CNPC) and Royal Dutch Shell have completed a joint take-over of Australian coal seam developer Arrow Energy. The acquisition deal was signed on March 19. PetroChina International Investment Co, a subsidiary of CNPC, and Shell Energy Holdings Australia, agreed to establish a 50-50 joint venture to pay AUD3.5 billion to buy all Arrow stock. The joint venture owns Arrow and Shell’s coal seam assets in Queensland, and Arrow’s power generating sector in Australia. Assets of a natural gas project on Curtis Island are also included. The deal was CNPC’s first move into Australia’s coal seam market and was expected to lay a solid foundation for Sino-Australian cooperation in coal seam development, according to a CNPC statement. The acquisition would help CNPC to become an internationally competitive energy company.
TPG Capital partners Shanghai in PE fund
By : agxadmin
A CNY5 billion yuan-denominated fund was co-established in Shanghai by private investment company TPG Capital, the Shanghai municipal government and the Pudong new area government to invest in China’s consumer, retail, financial and health care industries and focus on medium- to large-sized companies nationwide. Fund raising would start in the next few months. Last year, Blackstone Group also set up a CNY5 billion fund with the Shanghai government, while Carlyle Group received approval this March to form a USD100 million fund with the Shanghai Fosun High Technology (Group) Co, a privately-owned company with businesses spanning steel, mining and real estate. TPG Capital invested in Shenzhen Development Co in 1994 and its portfolio includes Lenovo Group and Daphne International Holding, a shoe retailer. TPG Capital has 40 staff members focused on Chinese investments. China has become TPG Capital’s second-largest investment market outside the U.S., accounting for 10% of its total investments and more than 10% of its global profits.
Sinopec’s profit rises modestly
By : agxadmin
China Petroleum and Chemical Corp (Sinopec) posted a 6.6% year-on-year rise in first-half net profit to CNY35.46 billion. Second-quarter net profit fell 10.6% year-on-year to CNY19.68 billion, but it was 24.6% higher than the CNY15.79 billion profit recorded in the first quarter. First-half operating profit from oil and gas production surged four-fold year-on-year to CNY22 billion, thanks to a 40.7% jump in natural gas output and a 97.9% rise in the average oil selling price to USD67.3 per barrel. Oil output was flat at 21 million tons. However, refining operating profit plunged 71.4% to CNY5.69 billion, as profit margins were squeezed by much higher crude oil prices and Beijing’s holding back from letting the fuel price rise by the same degree to fight inflation. Chemical profit slid 14.5% to CNY8.34 billion despite a 24.7% rise in six key products to 16.65 million tons. Second-half supply is expected to continue to rise, as Sinopec began trial production at a new plant in Zhenhai, Zhejiang, in June, and put its new Tianjin plant into commercial operation in May. The company plans to produce 6.32 billion cubic meters of gas in the second-half, up 11.5% from the first-half. Gas took up 18.3% of total oil and gas production, up from 13.7% in the year-earlier period. Second-half oil output will again be flat at 21.5 million tons, the South China Morning Post reports.
China to diversify oil imports
By : agxadmin
China, which is set to import more than 55% of its oil needs this year, should seek greater diversification of oil imports, build more stockpiles and improve conservation to enhance energy security, said analysts. The country will see a continuous increase in oil imports, as domestic production cannot keep pace with the fast growing economy, said Zhou Dadi, Researcher with the Energy Research Institute under the National Development and Reform Commission (NDRC). The Persian Gulf accounts for the biggest part of China’s oil imports and steps have been taken to boost imports from Africa and Central Asia in recent years. China has finished the construction of the first four national strategic oil reserves and is currently building the second batch. The country’s strategic stockpile now equals 30 days of imports, according to the National Energy Administration (NEA). State-owned oil companies have also built up their commercial stockpiles. The country’s oil consumption rose to 220 million tons in the first six months, a year-on-year growth of 15.1%. China imported 19 million tons of crude oil in July, down from a record high of 22.27 million tons in June, the China Daily reports.
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