China approved a plan to set up a Nasdaq-style board for technology companies in Shanghai, aimed at improving their ability to raise funds. President Xi Jinping chaired the sixth meeting of the Central Committee for Deepening Overall Reform, during which plans to launch a science and technology innovation board at the Shanghai Stock Exchange were approved. A plan to implement a pilot registration-based initial public offering (IPO) system for the new board was also approved at the meeting. Xi first announced a plan for the board in November when attending the China International Import Expo (CIIE) in Shanghai. The move to launch the science and technology innovation board and experiment with the registration-based IPO system is a significant measure to implement the innovation-driven development strategy and deepen capital market reform, according to a statement released after the meeting, the Shanghai Daily reports.

Meanwhile, the Chairman of the China Securities Regulatory Commission (CSRC), Liu Shiyu, has been replaced by the former Chairman of the Industrial and Commercial Bank of China (ICBC) Yi Huiman. Liu had been in charge of the CSRC since February 2016, while Yi had been Chairman of ICBC since 2016. When Liu Shiyu joined the CSRC, China’s stock market was in turmoil. The Shanghai Composite Index, its primary gauge, was down almost 50% from its peak eight months earlier and scandals were rife. He launched a series of investigations in a bid to snare high-powered financiers who pocketed billions by manipulating the market. But now Liu seems to have been fallen out of favor for being too conservative and for his excessive oversight of the market which has led to a significant drop in market activity. His successor Yi Huiman is expected to further open up the stock market and loosen the restrictions on derivative products. The most uphill task facing Yi will be to restore confidence in what was the world’s worst-performing equity market in 2018.

Foreign investors have significantly increased their presence in China’s commercial real estate sector, investing CNY78 billion last year, a record since 2005 and up 61.5% year-on-year. Throughout 2018, commercial real estate transactions hit a record high of CNY251.7 billion, up 4% year-on-year, according to a report on China’s 2019 property market outlook by global real estate consultancy CBRE. Foreign capital flows into the sector increased from CNY26 billion in 2016 to CNY48.3 billion in 2017. The central authorities’ deleveraging campaign has tightened domestic financing channels and affected domestic investors’ financing capacity, said Jim Yip, head of capital markets for JLL China. International investors are embracing more opportunities to secure deals amid weaker competition from their domestic counterparts, said James Macdonald, Senior Director of Savills China Research.

According to JLL’s data, 56% of the nation’s commercial property investment went to Shanghai, which is considered a stable and long-term investment destination among investors both from home and abroad. Both of the two largest deals made by foreign investors last year took place in Shanghai. These were CapitaLand’s and Singapore sovereign wealth fund GIC’s purchase of Shanghai’s tallest two towers at Harbor 55, and Blackstone’s purchase of Mapletree Business City. The former deal, which cost CapitaLand and GIC CNY12.8 billion, is also the biggest single purchase CapitaLand has made in the Chinese mainland so far. Blackstone’s new property is an office and retail complex, costing CNY8.3 billion. Compared to 2017, foreign investors became more proactive last year, and they will maintain that momentum this year, said Yip with JLL. In the 2019-24 period, an estimated USD35 billion will be invested in high value-added and opportunist properties in the China market, said Xie Chen, head of research at CBRE China. It is expected that in the short term, China will not expand financing channels for domestic real estate companies, but large companies will have the advantage in securing loans.

“Faced with high repayment pressure, domestic property owners are expected to have to offload their properties to pay down debt. The market is forecast to see a price correction in 2019, when sellers become more pressured to sell properties in the slow market,” Savills’ Macdonald said. In addition to the conventional foreign capital investment destinations of Beijing and Shanghai, which attracted 85% of foreign investment in 2018, the Hong Kong-Zhuhai-Macao Bridge, opened late last year, will boost the Guangdong-Hong Kong-Macao Greater Bay Area by attracting more attention from property investors, the China Daily reports.

On 14 January HE Ambassador Cao Zhongming had a meeting with the China-Platform. The Province of East-Flanders, Mr Didier Detollenaere, Acting Governor; City of Ghent, Mr Matthias De Clerq, Mayor; Ghent University, Prof. Rik Van de Walle, Dean; North Sea Port, Mr Daan Schalck, CEO; and the Flanders-China Chamber of Commerce, represented by Ms Gwenn Sonck, introduced their activities on China to the Chinese Ambassador.

Opportunities in China for your cleantech company? Discover them during our sector event on February 5. Among others, Altreonic and Jaga’s experience in China will inspire you, while Flanders Investment & Trade offers you insights in the Chinese economy and the current situation.

During the event you can individually evaluate your company’s activity compared to the potential of the Chinese market in regions closely paired with Flemish provinces: Chengdu, Chongqing, Guangdong, Hebei and Shaanxi.
Through the I²PCC project, officially launched at this event, we put this network at the service of Flemish cleantech companies. Your company will be able to establish unique contacts in diverse Chinese regions and niche markets.

The evening will conclude with snacks and drinks during a networking moment with the organizers and participants.

Program:


15h30 – Registration

16h00 – Welcome by Ludwig Caluwé, Vice Governor Province of Antwerp and Chairman POM Antwerp

16h05 – Introduction I²PCC by Alice Cooman, Province of Antwerp

16h15 – Company testimonials:
• Altreonic, Eric Verhulst, CEO/CTO
• Jaga, Nico Vanherle, CEO Jaga China
• EMTI, Ching Yu Chang, Operations Manager

17h00 – “Doing business in China” by Michèle Surinx, Flanders Investment & Trade

17h30 – Conclusion by Bruno Reyntjens, Cleantech Flanders

17h35 – Possibility of individual company pitch (*) and networking

(*) The company pitch is a short oral presentation of the expected company activities in China to the project partners of I²PCC, not a PPT-presentation. Based on the pitch, the partners can evaluate in which Chinese region there might be opportunities. During the working visit of I²PCC to the regions, the company activities can already be presented to the Chinese partners. Prior to the event, you will receive specific guidelines for the pitch.

Participation is free of charge, but registration is mandatory before 31 January 2019 via this link

I²PCC is a common project of the provinces of Antwerp, Limburg, East-Flanders and Flemish-Brabant, supported by Cleantech Flanders and Flanders Investment & Trade. The European Fund for Regional Development (EFRD) is financially supporting the project.

Flanders Investment & Trade is announcing the nomination of the Chinese company CPMC for the FIT 2019 Foreign Investment Trophy of the Year. This is the first time a greenfield Chinese investment of this scale in the production industry takes place in Flanders, and as such it is a well-deserved nomination. This substantial investment shows the importance and added value of Chinese investments in Europe. You can cast your vote on the website https://www.foreigninvestmenttrophy.be/