Toyota delays plan to start manufacturing Lexus cars in China
Jul-27-2015 By : fcccadmin
Toyota Motor Corp is likely to delay building its premium Lexus brand in China for at least a few years, as growth in China’s auto market slows and a weak yen makes it cheaper to keep making cars in Japan. Toyota wants to focus on strengthening the Lexus brand in China and increasing sales in the country to well above 100,000 vehicles a year before investing what could be hundreds of millions of dollars if it was to build a new assembly line, two company executives told Reuters. The Japanese firm is also reluctant to share control of the Lexus business with a domestic joint venture partner – a requirement for foreign carmakers building and selling vehicles in China. Toyota wants to make Lexus a “more well-recognized name” in China before committing to production in the country. China’s auto market has been slowing down significantly to a growth rate of just 1.4% in the first half of this year. Rivals such as Nissan’s Infiniti, Jaguar Land Rover and General Motors’ Cadillac however have decided to go ahead with plans to begin production in China.
First new work permit for foreign students issued in Shanghai FTZ
By : fcccadmin
Shanghai has approved the first work permit for a foreign student who has just graduated, initiating the city’s new policy aimed at attracting and retaining global talent. The policy eliminates the requirement of at least two years of work experience for foreign students who graduate from Shanghai universities with a master’s degree or above and seek a job in the Shanghai Pilot Free Trade Zone (FTZ) or the Zhangjiang National Innovation Demonstration Zone.
New Development Bank opens in Shanghai
By : fcccadmin
The long-planned New Development Bank (NDB) opened in Shanghai on July 21. The bank, launched jointly by Brazil, Russia, India, China and South Africa (BRICS), will provide financial support for infrastructure construction, mainly in emerging markets. Decisions will now be made regarding its organizational structure, operating rules, recruitment methods and procedures for the selection of investment projects. Chinese Finance Minister Lou Jiwei said at the opening ceremony: “The NDB is complementary to the existing multilateral development organizations, and it will build close relationships with them and the private sector.” The NDB was proposed by the BRICS’s five Finance Ministers in 2012 at the G20 Summit. In July 2014, at the sixth BRICS Summit in Fortaleza, Brazil, the countries officially announced the setting up of the BRICS bank, to be headquartered in Shanghai. An African regional center will be established in Johannesburg, South Africa. The NDB, with its global purview and five members, differs from the Asian Infrastructure Investment Bank (AIIB), where the 57 prospective founding countries will focus on providing financial support for infrastructure construction projects in Asia. The NDB will have an initial authorized capital of USD100 billion, and its initial subscribed capital of USD50 billion will be shared equally among the five founding members. K.V. Kamath, who headed ICICI Bank, India’s leading private bank, for more than a decade, was previously named as the first President of the NDB, the China Daily reports.
Fosun Group bidding to take over BHF Kleinwort Benson
By : fcccadmin
The Chinese group Fosun is bidding to take over Brussels-listed BHF Kleinwort Benson, previously known as RHJ International. Earlier this month, Fosun took over the German private bank Hauck & Aufhäuser (H&A). In 2012 it had already acquired BHF Bank. Fosun already had a 20% stake in BHF Kleinwort Benson, which it increased in the past months to tot 26,2% by partly buying out Tim Collins, the U.S. founder of the former RHJ International.
Meanwhile the buyout of Delta Lloyd Bank Belgium by the Chinese insurance company Anbang Insurance Group has been concluded. The Chinese insurance company paid €206 million to acquire the Belgian subsidiary of Delta Lloyd Group.
FDI up 8.3% in first half
By : fcccadmin
China’s foreign direct investment (FDI) reached a new high in the first six months of the year, the Ministry of Commerce (MOFCOM) said. Foreign companies invested CNY420.5 billion in the country during the January-June period, up 8.3% from a year earlier, with 11,914 new foreign-invested firms set up. The growth was led by funds in services, which expanded 23.6% year-on-year to USD43.4 billion in the first six months, 63.5% of the total. Capital for the financial sector increased nearly five times and that for scientific research more than doubled. Investment in manufacturing contracted 8.4% to USD20.8 billion, or 30.5% of the total. But funds flowing into telecom equipment manufacturing and chemical manufacturing rose 231% and 71.9% respectively during the period. The European Union directed USD4.08 billion into China in the first six months, up 13.7% year-on-year. But the United States cut its investment by 37.6% to USD1.09 billion, partly due to a high comparative base. In June alone, China’s FDI rose 0.7% to USD14.5 billion, the Shanghai Daily reports.
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