New maglev train for commuters delivered
China’s first self-developed 160 kilometer-per-hour magnetic levitation train has come off the production line, as a family of maglev products gradually emerges in the nation. This type of maglev train, suitable for commuting between urban areas and satellite towns, was delivered on June 12 by CRRC Zhuzhou Locomotive Co Ltd, based in Hunan province. To facilitate intercity commuting, the company expects to deliver 200 km/h medium-speed maglev trains by the end of 2019, says Tong Laisheng, director of the maglev institute of CRRC ZELC. China’s central bank continued to inject funds into the financial system through open market operations on June 13 to offset liquidity pressure. The People’s Bank of China pumped 130 billion yuan ($20.3 billion; 17 billion euros; £15 billion) into the market through reverse repos, with 60 billion yuan in contracts maturing, leading to a net injection of 70 billion yuan. This followed a net injection of 30 billion yuan on June 12. A reverse repo is a process by which the central bank bids and buys securities from commercial banks, with an agreement to sell them back in the future. Analysts believe the moves were made to stabilize market expectations, as banks’ liquidity demands could increase due to taxes and required reserves as well as more maturing securities. German carmaker Mercedes-Benz and Italian luxury car manufacturer Maserati are recalling nearly 8,000 imported automobiles in China, the General Administration of Customs said. On June 12, Mercedes-Benz began recalling 7,799 GLS SUV and S automobiles manufactured between Jan 4, 2017, and June 5, 2017, due to a defective lock on the left door. Starting on June 19, due to a defective front subframe, Maserati will recall 12 automobiles made between Aug 4, 2017, and Oct 9, 2017, as well as 20 automobiles manufactured between July 31, 2017, and Oct 26, 2017, and 35 automobiles produced between Aug 1, 2017, and Dec 12, 2017. Chinese mainland on-demand online consumer services platform Meituan plans to file for an initial public offering of about $6 billion in Hong Kong as soon as this month. The company is considering selling about 10 percent of its equity, the minimum required under Hong Kong exchange rules, to avoid dilution, says a person familiar with the matter. The company is targeting a valuation of roughly $60 billion, the source said, although the valuation and fundraising target won’t be in the initial filing documents. With the first filing in June, the actual listing of Meituan shares is likely to occur around October. Chinese e-commerce giant JD.com will invest 2 billion yuan ($310 million; 265 million euros; £230 million) over the next three years to establish the headquarters of its unmanned delivery vehicles in Changsha, the capital of Hunan province. The project is aimed at promoting the research and development, testing and personnel training related to autonomous delivery vehicles and the construction of intelligent manufacturing industrial bases, including intelligent robots and equipment, according to JD. The company plans to attract 1,000 university graduates and more than 10 teams of experts to Changsha for the undertaking in the next five years. The National Development and Reform Commission and China Construction Bank Corp will jointly set up a fund to promote the development of national-level strategic emerging industries. With a target value of about 300 billion yuan ($47 billion; 39 billion euros; £35 billion), the fund will be invested in a number of strategic emerging industries, such as next-generation information technologies, high-end equipment, new material, biology, new energy vehicles, energy conservation and environmental protection, and the digital creative industry, the NDRC said in a news release on June 12. To achieve this goal, the commission will establish a strategic partnership with China Construction Bank, the nation’s second-largest State-owned commercial lender by assets. China said on June 12 that it will ease restrictions on foreign institutional investors in a step to open wider its financial market. New rules for the Qualified Foreign Institutional Investor and the RMB Qualified Foreign Institutional Investor programs will make it easier for these investors to move funds out of the Chinese mainland, according to the People’s Bank of China and the State Administration of Foreign Exchange. The Asian Development Bank approved $350 million (296 million euros; £261 million) in additional headroom on June 11 to further expand the scope and impact of its Trade Finance Program. Supporting more than 12,000 small and mediumsized enterprises in developing Asian economies since 2009, the TFP helps reduce market gaps for trade finance by providing loans and guarantees to financial institutions to support trade activities in the region. The ADB said the additional financing will increase the TFP’s limit to $1.35 billion, keeping up with the increasing market demand for trade finance from the program, which grew by over 50 percent in 2017. Internet businesses in the country posted faster revenue growth in the first four months of the year, official data showed. Major internet businesses and related service providers saw revenue surge by 24.9 percent year-on-year to 264.9 billion yuan ($41.4 billion; 35 billion euros; £30 billion) in the January-April period, according to the Ministry of Industry and Information Technology. The growth was 5.4 percentage points faster than the same period last year, the ministry said. Online gaming and e-commerce maintained brisk expansion, with online gaming revenue up by 27.9 percent year-on-year to reach 58.7 billion yuan. Income of e-commerce platforms jumped by 40.4 percent to 92.3 billion yuan.