In­dus­trial co­op­er­a­tion in spot­light at Nairobi expo

China Daily European Weekly - - Business - Steel ex­port price rises in Oc­to­ber Power gen­er­a­tor says it will form con­sor­tium In­surance risks likely to be curbed fur­ther

The in­au­gu­ral China-Africa In­dus­trial Ca­pac­ity Co­op­er­a­tion Expo, which con­cluded in Kenya’s cap­i­tal of Nairobi on Dec 16, saw strong in­ter­est in Sino-African in­dus­trial co­op­er­a­tion. The expo at­tracted more than 50 Chi­nese com­pa­nies from di­verse sec­tors to show­case their prod­ucts and ser­vices. It also fea­tured in­ter­ac­tive ses­sions be­tween Chi­nese and African com­pa­nies keen to forge part­ner­ships. Adan Mo­hamed, Kenya’s cabi­net sec­re­tary for trade, in­dus­try and co­op­er­a­tives, says the Nairobi expo re­in­forced the cru­cial role of China in ad­vanc­ing in­dus­trial progress in Africa. At the four-day event, African of­fi­cials also par­tic­i­pated in round­tables aimed at show­cas­ing in­vest­ment op­por­tu­ni­ties in their home coun­tries to Chi­nese in­vestors. Im­proved prod­uct qual­ity and busi­ness struc­ture brought China’s steel ex­port price to $798.80 (675 eu­ros; £597) per met­ric ton in Oc­to­ber, the high­est level since Fe­bru­ary 2014, ac­cord­ing to the China Iron and Steel As­so­ci­a­tion. In the first 10 months of this year, the av­er­age ex­port price of steel prod­ucts was $700.80 per ton, which was $211, or 43.1 per­cent, higher than the same pe­riod last year. De­spite a 30.4 per­cent year-on-year drop in steel ex­ports to 64.49 mil­lion tons in the 10-month pe­riod, rev­enues from the ex­ports only shrank by 0.3 per­cent to nearly $45.2 bil­lion. This re­flected im­prove­ment in both the struc­ture and qual­ity of steel ex­ports, says Gu Jian­guo, deputy head of the CISA. Most of China’s steel en­ter­prises per­formed bet­ter thanks to the coun­try’s con­tin­ued ca­pac­ity-cut­ting ef­forts, which are a key part of the on­go­ing sup­ply-side struc­tural re­form. China Re­sources Power Hold­ings Co an­nounced on Dec 19 that it would join forces with its par­ent com­pany to form a con­sor­tium in its lat­est ef­fort to ac­quire a 30 per­cent stake in an off­shore wind farm com­pany based in the United King­dom. The third-largest Hong Kong-listed main­land gen­er­a­tor said its to­tal in­vest­ment in the ac­qui­si­tion would be £600 mil­lion ($803 mil­lion). Ac­cord­ing to the com­pany, it will hold a 40 per­cent stake in the con­sor­tium. Its par­ent com­pany, China Re­sources, will hold the re­main­ing 60 per­cent. China will re­strict the busi­ness ac­tiv­i­ties of in­sur­ers with low as­set li­a­bil­ity man­age­ment ca­pa­bil­i­ties in a bid to ad­dress risks in the sec­tor, ac­cord­ing to the coun­try’s in­surance reg­u­la­tor. In­surance com­pa­nies will be rated from A to D by the reg­u­la­tor, based on their abil­ity to en­sure the match­ing of ma­tu­rity, cash flow and cost on both sides of their bal­ance sheets, and those with low rat­ings will be banned from cer­tain in­vest­ment ac­tiv­i­ties, ac­cord­ing to draft rules re­leased by the China In­surance Reg­u­la­tory Com­mis­sion. Com­pa­nies with a D rat­ing, the low­est, will be banned from launch­ing new prod­ucts for a cer­tain time. Salaries of the top man­age­ment of these com­pa­nies will also be re­stricted. In­sur­ers with high rat­ings will be able to use their funds more freely.

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