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vineri, 9 septembrie 2011

TEXT-Fitch affirms China Medical Technologies at 'B+'/stable

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(The following statement was released by the rating agency)

Sept 09- Fitch Ratings has affirmed China Medical Technologies, Inc.'s (CMTI) Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+' with Stable Outlook.

The ratings are supported by CMTI's steady revenue growth and stable profit margin, solid liquidity profile, and conservative financial management. The ratings are, however, constrained by the company's small scale - operating EBITDAR close to USD80m for the financial year ended 31 March 2011 - and financial leverage of total adjusted debt / operating EBITDAR over 5.0x for the same period.

"CMTI has successfully penetrated the Chinese market for molecular diagnostic systems, which shows strong growth potential," said Cosmo Zhang, Director at Fitch's Corporates team. "The company's stable EBITDA margin also reflects its solid market position and operational stability." For Q1FY11, CMTI recorded revenue of CNY237.1m, up 27.4% yoy.

Fitch also notes the company's ability to meet financial obligations is underpinned by its current cash position, no dividend payout plan in the near future, and strong cash flow generation capability.

The Stable Outlook reflects steady demand for healthcare in China and strong revenue growth prospects for CMTI's newly SFDA-approved molecular diagnostic products.

Positive rating action may result from operating EBITDAR rising over USD100m, while maintaining total adjusted debt/operating EBITDAR below 2.5x, net adjusted debt/ operating EBITDAR below 1.5x or operating EBITDAR/gross interest above 4.0x on a sustainable basis.

Negative rating action may result if there are material declines in the Enhanced Chemiluminescence Immunoassay business, if it fails to expand the Fluorescent in-situ Hybridization/Surface Plasmon Resonance business and/or if the company makes any significant acquisition that does not immediately contribute to positive cash flow. Fitch may also consider negative rating action if total adjusted debt/operating EBITDAR rises above 5.25x, net adjusted debt/operating EBITDAR above 4.0x or operating EBITDAR/gross interest falls below 2.25x on a sustainable basis.


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miercuri, 7 septembrie 2011

Sany head tops China billionaire list in record year

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BEIJING, Sept 7 | Wed Sep 7, 2011 4:28am EDT

BEIJING, Sept 7 (Reuters) - Heavy machinery magnate Liang Wengen has usurped the top spot among China's billionaires, according to a survey released on Wednesday that called 2011 a record year for the country's super rich.

Liang, 55, with his 58 percent share in Sany Group and an $11 billion fortune, knocked beverage-making billionaire Zong Qinghou from the top spot on the Hurun Rich List 2011, a statement from the survey's publisher said.

"Despite the continuing global financial crisis, 2011 has been a record year for China's rich," the statement said, noting that 271 Chinese billionaires were now ranked on the Hurun 1,000 rich list, up from 189 in 2010.

That number has more than doubled from 2009's 130 billionaires. Even making the top 1,000 has become harder, with the cut-off at $310 million, up from $220 million last year. The average wealth of those who made the cut is $924 million.

Rupert Hoogewerf, founder and publisher of Hurun Report in its thirteenth year, said in the statement that the list did not account for all of China's billionaires, a number he said was likely closer to 600.

"China's relentless construction boom coupled with a growing domestic retail market have been the key drivers for the growth in wealth," the statement said. It said successful stock market listings also had been a major factor.

Sany has plans to go public in Hong Kong, which could boost Liang's fortune further.

Zong, who previously took the top spot, saw his wealth decline, from $12 billion in 2010 to $10.7 billion as of August 15 when the calculations were made.

Search engine giant Baidu's Li Yanhong ranked third, with $8.8 billion to his name.

China's super rich were also well connected, the Hurun statement said, with 30 percent of the top 50 billionaires serving in government advisory roles.

Property was named as one of the main sources of wealth for 29 of the list's top 50.

China has issued a slew of measures aimed at cooling the property market over the past two years, but many economists have warned that a bursting property bubble is the biggest risk facing the world's second-largest economy in the medium to long term.

Soaring home prices and steep inflation have spurred social discontent over China's widening wealth disparity, which surpassed warning levels in 2007 as measured by the Gini Index, and is worse than in any developed economy, the World Bank has said.

China has 960,000 people worth at least $1.5 million, the Hurun statement said.

Still, with all of its rich, China has not cracked the world's top 10, as measured by the March 2011 Forbes rankings, in which U.S. citizens held four spots. The top spot in that ranking was held by Mexico's Carlos Slim, who reportedly had wealth of $74 billion. (Reporting by Michael Martina; Editing by Ken Wills and Idayu Suparto)


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UPDATE 3-ConocoPhillips apologises for China oil spill

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* ConocoPhillips to establish fund to benefit Bohai Bay

* Company discussed fund with partner CNOOC

* Company among several Western firms criticized in local media (Adds details, analyst comments)

By Judy Hua and Don Durfee

BEIJING, Sept 7 (Reuters) - U.S. energy giant ConocoPhillips moved to repair its frayed relations with Chinese regulators on Wednesday, apologising for an oil spill in northern China's Bohai Bay and saying it will establish a fund to cover the clean-up costs.

The company said the proposed fund would be designed to address its legal responsibilities and benefit the general environment in Bohai Bay, but it did not say how large the pot would be.

"ConocoPhillips deeply regrets these incidents and apologizes for the impact that the incidents have had on the Chinese people and the environment," Chief Executive James Mulva said in a statement.

A ConocoPhillips subsidiary said on Tuesday that all operations at an oilfield in Bohai Bay had been shut down, as ordered by China's marine authority.

The State Oceanic Administration (SOA) last week ordered ConocoPhillips China to halt injection, drilling and production at the Penglai 19-3 oilfield -- China's largest -- because it had failed to seal leaks that have lasted for nearly three months.

ConocoPhillips owns a 49 percent stake of the oilfield and acts as the operator, while China's top offshore oil and gas producer CNOOC has a 51 percent stake.

Major Western firms, including ConocoPhillips, Unilever (UNc.AS) and Yum Brands have lately been under increasing scrutiny from China's state media.

ConocoPhillips has been a particular target, enduring withering criticism from Chinese commentators and regulators. On Monday, a commentary in the People's Daily, the mouthpiece of China's Communist Party, accused the company's China operation of "delays, negligence, cover-ups and cheating ".

Analysts say that Western firms, lacking political protection, are easier targets for criticism. State-owned CNOOC has received comparatively little criticism, despite its joint ownership of the oilfield.

It was not immediately clear whether the apology and move to establish a fund for the bay would be enough to mollify the company's critics.

"The key is the scope of this fund, whether it can really compensate losses of fishermen and ecological damage in Bohai Bay," said Li Yan, head of Climate and Energy Campaign in Greenpeace in Beijing.

"If they can really establish this fund, then we can say they are doing the right thing. But it's too early to draw this conclusion now."

An official of ConocoPhillips China told Reuters that the company was currently working on the details of the fund.

BIGGEST FACILITY

Penglai 19-3 oilfield is one of ConocoPhillips' biggest oil production facilities in Asia.

According to a statement posted on CNOOC's website, the Chinese company's chairman met ConocoPhillips last week to express its willingness to cooperate on a Bohai Bay fund.

ConocoPhillips China would seek to work with Chinese authorities and CNOOC regarding the establishment and operation of the fund, the company said in the statement.

As oil spills go, the Bohai Bay leak is not among the largest. ConocoPhillips China said on Aug. 31 that as much as 3,200 barrels of oil and mud had leaked into the sea, and Chinese authorities said some 5,500 sq km (2,120 sq miles) of water had been polluted.

By contrast, the massive 2010 BP oil spill spewed more than 4 million barrels into the Gulf of Mexico.

The Penglai 19-3 oilfield is the country's largest offshore oilfield, with total output of 8.4 million tonnes per year (168,000 bpd), about 20 percent of total crude oil production in Bohai Bay.

CNOOC has said it would lose 62,000 barrels per day of output because of the suspension at China's biggest offshore oil field.

It had already been losing 22,000 bpd since the regulator ordered a halt to operations at two PL19-3 platforms on July 13 because of the leaks. CNOOC's Hong Kong listed shares were trading 2.3 percent higher on Wednesday afternoon, after having fallen more than 10 percent following news of the output suspension.

The oilfield was producing 150,000 bpd before the oil leak, Standard Chartered Bank said in a research note on Monday. (Additional reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott and Ken Wills)


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luni, 5 septembrie 2011

FTSE roiled as China survey adds to growth worries

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* FTSE down 1.6 percent

* Commods fall on downbeat China services data

* Banks down on Moody's warning, U.S. subprime risks

By David Brett

LONDON, Sept 5 (Reuters) - Miners led Britain's top share index sharply lower on Monday after downbeat data from China, on the back of Friday's poor U.S. jobs figures, heightened concerns the economy may fall into recession.

The UK's benchmark index was down 84.59 points or 1.6 percent at 5,207.44 by 0751 GMT, extending the previous session's 2.3 percent sell-off and tracking sharp declines overnight in Asia and on Friday on Wall Street.

Investors still reeling from Friday's disappointing U.S. non-farm payrolls, which showed no jobs growth in the world's biggest economy in August, faced more pain as a survey showed China's fledgling services sector grew in August at the lowest pace on record.

That further darkened the outlook for commodities, prompting a flight from risk out of the mining sector , which relies heavily on demand from the world's hungriest consumer of commodities.

Antofagasta and Kazakhmys were the top fallers among the miners, shedding 3.5 and 3.4 percent, respectively.

Banks were also hit with Barclays , Royal Bank of Scotland and Lloyds Banking Group up to 5.4 percent lower as Credit rating agency Moody's said it was still reviewing several leading British banks for a possible downgrade.

Meanwhile, newspaper reports said UK banks could be forced to pay out more than 5 billion pounds ($8.1 billion) in damages related to the subprime mortgage scandal in the U.S.

London's blue chip index pared gains made at the start of last week when investors had hoped that the poor economic data, particularly from the U.S., would spell the start of a fresh round of economic stimulus in order to boost flagging growth.

"The reason for the upturn in sentiment was seemingly based on the view that the U.S. was about to switch the quantitative easing life support back on," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.

That hope, however, has now turned to fear as the downbeat economic data shows no sign of abating and investors are unconvinced policymakers have anything left in their arsenal to fire growth in the global economy.

"Rather than relying on more of the same in terms of QE, we'd prefer to see something more encouraging and positive come from President Obama in his post-Labour day address," added Mentel.

U.S. President Barack Obama, in a speech set for Thursday, will unveil a jobs program he hopes will provide "meaningful" tax relief and help the nation's long-term unemployed, a top aide told Reuters Insider.

No U.S. data will be released on Monday, with U.S. equity markets closed for the Labor Day public holiday. On the domestic data front, August's Markit/CIPS services PMI will be released at 0828 GMT, with a reading of 54.0 forecast, down from 55.4 in July.

BROKERS CAUTIOUS

In a bleak assessment of current market conditions and the tough outlook facing corporates, UBS initiated coverage on global equities with an "underweight" stance.

"Given the deterioration in economic and policy fundamentals, we find it difficult to see why equity markets should trade at more elevated levels than their summer lows," UBS said in a note.

The broker said that in addition to the challenging macro backdrop, investors would have to deal with falling earnings expectations and therefore it retained its preference for "quality" stocks.

The broker moved to an "underweight" rating in financials and materials and moved consumer staples to "neutral". It kept its "overweight" rating on tech, healthcare, and telcos.

Credit Suisse too opted for safety first saying its strategists' sector allocation tended to reflect protection from the visible risks.

The safety first option taken by investors has seen bonds in Germany and the U.S. well supported in the last couple of days -- on the likelihood that the Federal Reserve would make new bond purchases. Gold has crept back towards its record highs around the $1900 mark.

That has provided support for Randgold Resources , the only FTSE riser, up 0.2 percent as investors bought the gold miner as a proxy for the precious metal. ($1 = 0.617 British Pounds) (Editing by Jon Loades-Carter)

* For related prices, Reuters Terminal users may click on - * UK stock report FTSE index: <0#.FTS6> techMARK 100 index: FTSE futures: <0#FFI:> Gilt futures: <0#FLG:> Smallcap index: FTSE 250 index: FTSE 350 index: Market digest: Top 10 by vol: Top price gainers: Top % gainers: Top price losers: Top % losers: * For related news, click on - * UK hot stocks: [HOT&GB] Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report: * For company prices, click on - * Company directory: By sector: * For pan-European market data and news, click on - * Daily European stocks report........................ European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index................................... Top 10 STOXX sectors........................ Top 10 EUROSTOXX sectors................... Top 10 Eurotop 300 sectors.................. Top 25 European pct gainers.................... Top 25 European pct losers.....................


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joi, 11 august 2011

UPDATE 3-New China Life files for up to $4 bln IPO - sources

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* A1 filing sets stage for HK, Shanghai IPO in coming weeks

* New China Life IPO among $35.4 bln in banks, insurer offerings by yearend

* Guangfa Bank says needs good window to launch $5.5 bln IPO - report (Edits)

By Elzio Barreto

HONG KONG, Aug 11 (Reuters) - New China Life, the country's third-largest life insurer, has filed an application to list in a dual Hong Kong and Shanghai IPO, sources said, braving volatile markets to raise up to $4 billion.

New China Life, in which Swiss insurer Zurich Financial Services has a 15 percent stake, filed its A1 listing document with the Hong Kong stock exchange on Thursday, pushing ahead with plans for an IPO in coming weeks, according to four sources with direct knowledge of the plans.

The sources could could not be identified because the details have not been made public.

Chinese companies including China Everbright Bank and Guangfa Bank plan to raise up to $35.4 billion in share sales in Hong Kong and China by the end of the year, according to Thomson Reuters calculations.

A worsening global stock market condition, however, could disrupt the IPO pipeline and companies are expected to price their offerings conservatively to ensure healthy demand for their shares, analysts said.

"Weak market will hurt sentiment in IPOs too," said Cheng Yi, an investment adviser with the sales department of Xiangcai Securities in Shanghai.

"Previously, clients were also worried that IPO shares might fall on listing day. We have been telling them they still can make money from IPO shares as companies have priced their IPOs more conservatively nowadays," he added.

Founder Securities , the Chinese partner of Credit Suisse , surged 44 percent on its Shanghai stock market debut on Wednesday, aided by a shift in investor sentiment after a massive equities selloff that investors think was overdone.

New China Life had originally planned to raise as much as $4 billion with a dual listing as soon as September, local and state media reported.

The company aims for a hearing with the Hong Kong exchange's listing committee on Sept. 22, with the IPO set for sometime in October, two sources said.

New China Life hired BNP Paribas , Bank of America Merrill Lynch , Deutsche Bank , Goldman Sachs , HSBC , JPMorgan , UBS AG and China International Capital Corp (CICC) to handle the dual listings, reports said.

To proceed with the dual-listing, New China Life must also obtain approval from the China Securities Regulatory Commission (CSRC) for the Shanghai-portion of the offering.

'WAITING FOR GOOD WINDOW'

Another big insurance IPO expected to hit the market later this year or early next year is People's Insurance Company of China Group's (PICC) $5-6 billion dual-listing in Hong Kong and Shanghai.

Taikang Life Insurance Co Ltd, in which Goldman Sachs has a 12 percent stake, is also eyeing a Shanghai listing, local media reported.

Guangfa Bank, previously known as Guangdong Development Bank, is waiting for a "good window" to launch its 35 billion yuan ($5.5 billion) dual-listing in Hong Kong and Shanghai, a local newspaper reported on Thursday.

"We are not in urgent need of capital. We just want to wait for a good window," Chairman Dong Jianyue was quoted as saying by the Dongfang Daily.

The Chinese lender, part-owned by Citigroup Inc , initially planned to launch the IPO in the third quarter of this year. (Additional reporting by Jing Song at IFR and Soo Ai Peng in SHANGHAI; Editing by Vinu Pilakkott and Lincoln Feast)


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miercuri, 25 mai 2011

China interested in building nuclear plant in E.Africa, IBI Corp says

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BEIJING | Wed May 25, 2011 2:09am EDT

BEIJING May 25 (Reuters) - China wants to help build nuclear power generation in East Africa, uranium mining and investment company IBI Corp said in a statement after meeting Chinese officials in Beijing, revealing China's undimmed appetite for overseas nuclear expansion despite the Japanese nuclear crisis this year.

IBI, which has uranium-prospective land in Uganda, said its director, A.J. Coffman, held an "encouraging meeting... with the relatively new umbrella organization overseeing China's research and development of Generation 3 and Generation 4 nuclear power plant designs."

"At the meeting, this entity expressed an interest in pursuing nuclear power plant construction in East Africa."

China is in the early stages of a massive nuclear power expansion to help meet the demands of its power-guzzling economy and to weaken the grip of coal as the dominant source of fuel.

Japan's earthquake and tsunami on March 11 and the ensuing nuclear crisis have threatened to put cracks in China's own plans, with the government ordering a halt to further nuclear approvals until it had inspected the existing reactors and construction sites.

China's ambitious domestic nuclear expansion is widely expected to march ahead, although talk of the sector growing to 80-90 gigawatts by 2020 may give way to a target of 70-75 GW. Still, that is a giant leap from China's existing nuclear capacity, which amounted to 10.8 GW, at the end of 2010.

Some of China's new plants will use "third generation" reactors, using technology from France's Areva (CEPFi.PA) and U.S.-based Westinghouse, part of Toshiba Corp . But later their technology will be transferred to China, enabling it to build third generation plants in its own right.

Currently there are no nuclear plants in East Africa, and only one country on the continent, South Africa, has nuclear power.

China already has some early-stage interests in uranium in Africa. The overseas arm of China National Nuclear Corp has a 37.2 percent stake in a uranium mine in Niger that began producing on Dec. 30, 2010, as well as exploration projects in Namibia and Zimbabwe.

Another state-owned company, China Guangdong Nuclear Power Corp , earlier this month withdrew a bid for UK-listed Kalahari Minerals , which holds 43 percent of Extract Resources , owner of Namibia's Husab project, potentially the world's second-biggest uranium mine.

The Chinese firm, which withdrew its $1.2 billion bid after regulators refused to let it cut its offer in the aftermath of the Japanese nuclear disaster, is considering whether to come back with a fresh offer. [ID:nSGE74A012]

For a graphic of uranium production by country, please click on r.reuters.com/xun48r (Reporting by Tom Miles; Editing by Ken Wills)


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BEIJING | Wed May 25, 2011 2:09am EDT

BEIJING May 25 (Reuters) - China wants to help build nuclear power generation in East Africa, uranium mining and investment company IBI Corp said in a statement after meeting Chinese officials in Beijing, revealing China's undimmed appetite for overseas nuclear expansion despite the Japanese nuclear crisis this year.

IBI, which has uranium-prospective land in Uganda, said its director, A.J. Coffman, held an "encouraging meeting... with the relatively new umbrella organization overseeing China's research and development of Generation 3 and Generation 4 nuclear power plant designs."

"At the meeting, this entity expressed an interest in pursuing nuclear power plant construction in East Africa."

China is in the early stages of a massive nuclear power expansion to help meet the demands of its power-guzzling economy and to weaken the grip of coal as the dominant source of fuel.

Japan's earthquake and tsunami on March 11 and the ensuing nuclear crisis have threatened to put cracks in China's own plans, with the government ordering a halt to further nuclear approvals until it had inspected the existing reactors and construction sites.

China's ambitious domestic nuclear expansion is widely expected to march ahead, although talk of the sector growing to 80-90 gigawatts by 2020 may give way to a target of 70-75 GW. Still, that is a giant leap from China's existing nuclear capacity, which amounted to 10.8 GW, at the end of 2010.

Some of China's new plants will use "third generation" reactors, using technology from France's Areva (CEPFi.PA) and U.S.-based Westinghouse, part of Toshiba Corp . But later their technology will be transferred to China, enabling it to build third generation plants in its own right.

Currently there are no nuclear plants in East Africa, and only one country on the continent, South Africa, has nuclear power.

China already has some early-stage interests in uranium in Africa. The overseas arm of China National Nuclear Corp has a 37.2 percent stake in a uranium mine in Niger that began producing on Dec. 30, 2010, as well as exploration projects in Namibia and Zimbabwe.

Another state-owned company, China Guangdong Nuclear Power Corp , earlier this month withdrew a bid for UK-listed Kalahari Minerals , which holds 43 percent of Extract Resources , owner of Namibia's Husab project, potentially the world's second-biggest uranium mine.

The Chinese firm, which withdrew its $1.2 billion bid after regulators refused to let it cut its offer in the aftermath of the Japanese nuclear disaster, is considering whether to come back with a fresh offer. [ID:nSGE74A012]

For a graphic of uranium production by country, please click on r.reuters.com/xun48r (Reporting by Tom Miles; Editing by Ken Wills)


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BEIJING | Wed May 25, 2011 2:09am EDT

BEIJING May 25 (Reuters) - China wants to help build nuclear power generation in East Africa, uranium mining and investment company IBI Corp said in a statement after meeting Chinese officials in Beijing, revealing China's undimmed appetite for overseas nuclear expansion despite the Japanese nuclear crisis this year.

IBI, which has uranium-prospective land in Uganda, said its director, A.J. Coffman, held an "encouraging meeting... with the relatively new umbrella organization overseeing China's research and development of Generation 3 and Generation 4 nuclear power plant designs."

"At the meeting, this entity expressed an interest in pursuing nuclear power plant construction in East Africa."

China is in the early stages of a massive nuclear power expansion to help meet the demands of its power-guzzling economy and to weaken the grip of coal as the dominant source of fuel.

Japan's earthquake and tsunami on March 11 and the ensuing nuclear crisis have threatened to put cracks in China's own plans, with the government ordering a halt to further nuclear approvals until it had inspected the existing reactors and construction sites.

China's ambitious domestic nuclear expansion is widely expected to march ahead, although talk of the sector growing to 80-90 gigawatts by 2020 may give way to a target of 70-75 GW. Still, that is a giant leap from China's existing nuclear capacity, which amounted to 10.8 GW, at the end of 2010.

Some of China's new plants will use "third generation" reactors, using technology from France's Areva (CEPFi.PA) and U.S.-based Westinghouse, part of Toshiba Corp . But later their technology will be transferred to China, enabling it to build third generation plants in its own right.

Currently there are no nuclear plants in East Africa, and only one country on the continent, South Africa, has nuclear power.

China already has some early-stage interests in uranium in Africa. The overseas arm of China National Nuclear Corp has a 37.2 percent stake in a uranium mine in Niger that began producing on Dec. 30, 2010, as well as exploration projects in Namibia and Zimbabwe.

Another state-owned company, China Guangdong Nuclear Power Corp , earlier this month withdrew a bid for UK-listed Kalahari Minerals , which holds 43 percent of Extract Resources , owner of Namibia's Husab project, potentially the world's second-biggest uranium mine.

The Chinese firm, which withdrew its $1.2 billion bid after regulators refused to let it cut its offer in the aftermath of the Japanese nuclear disaster, is considering whether to come back with a fresh offer. [ID:nSGE74A012]

For a graphic of uranium production by country, please click on r.reuters.com/xun48r (Reporting by Tom Miles; Editing by Ken Wills)


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marți, 24 mai 2011

UPDATE 1-Fuji Heavy, Chery agree on China Subaru deal -sources

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* Agrees in principle to make Subaru in China

* Partners communicating with Chinese regulators on deal

* Fuji's recovery at home cited for postponed announcement of deal

* Chery tie gives Fuji a foothold in China (Adds details, background)

By Fang Yan and Ken Wills

BEIJING, May 24 (Reuters) - Fuji Heavy Industries has agreed in principle to make Subaru vehicles in northeastern China with Chery Automobile, the country's largest independent automaker, two people with knowledge of deal said on Tuesday, marking the latest foreign manufacturing tie-up in the world's biggest auto market.

The Chery deal, if it goes ahead, would give the Japanese automaker a foothold in China, joining the ranks of General Motors and Volkswagen , which had already carved up a major chunk of market where vehicle sales had topped 18 million in 2010.

"Chery and Fuji have agreed on the major terms and conditions of making Subarus in the city of Dalian and are now communicating with Chinese regulators to seek their endorsement," one person briefed on the matter told Reuters.

The terms and conditions were similar with what had been previously reported, the person said, declining to elaborate.

The Nikkei business daily reported in late 2010 that the two companies were in advanced talks to build a 30 billion yen ($366 million) China plant, with initial annual capacity of 50,000 units, rising to 150,000 eventually.[ID:nSGE6BJ0CE]

New auto manufacturing ventures in China need to be approved by government bodies, including the top economic planner, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, which oversees major industry policies.

Another person close to the companies told Reuters that Fuji Heavy was still occupied with recovery efforts after the devastating March 11 earthquake and tsunami, contributing to a postponement of the announcement of its China tie.

Like all the other Japanese automakers, Fuji Heavy suffered from the disaster. Disruption to the supply chain had snapped its sales momentum, causing a loss of some 15,000 units in car sales in the few weeks remaining in the business year that ended on March 31. [ID:nL3E7GA0IH]

A Fuji Heavy spokesman said the company had no further comment after admitting late last year that Chery was among its potential partners in China.

Chery spokesman Jin Yibo said he had no information on the deal.

A formal announcement of the deal is expected in the coming months. It will make Chery the latest Chinese car maker to have a foreign partner, joining bigger auto groups SAIC Motor Corp , Dongfeng Motor Group , Chongqing Changan Automobile among others.

CHINA TIES

China, which eclipsed the United States as the world's top auto seller in 2009, is too important to miss for most industry players, including top Japanese brands Toyota Motor , Nissan Motor and Honda Motor which formed their local alliances years ago.

Fuji Heavy, has been seeking a tie in China, where only imported Subaru models, such as Legacy, Forester, Impreza and Tribeca are offered via select agents, including Pangda Automobile Trade Co , China's largest publicly traded auto dealer.

The smallest Japanese automaker had previously approached a number of Chinese automakers for a possible tie, including SAIC, a long-time partner of GM and Volkswagen, industry sources said.

Chery Auto, best known for its hot-selling compact car QQ, had explored opportunities to export Chinese-made small cars to developed markets under the Chrysler badge.

But the deal was called off after Chrysler, now controlled by Fiat , reached a similar pact with Nissan Motor . Chrysler's bankruptcy amid of a steep industry downturn in North America was also cited as a reason.

In 2010, Chery sold 682,058 vehicles, up 36.3 percent year-on-year, outpacing a 33.2 percent gain in China's car market as well as Warren Buffett-backed BYD , which sold 519,806 cars, up 15.5 percent. [ID:nTOE70B06A].

Geely Automobile , whose parent owns Volvo Cars, sold 415,286 cars last year, up 27.1 percent.

Chery, which started selling cars overseas in 2002, is now China's biggest auto exporter with year-to-date shipments exceeding 500,000 units. It operates 16 assembly plants overseas, including a $400 million facility in Brazil that will eventually be capable of making 150,000 cars per year.

In 2011, Chery aims to ship 120,000 cars overseas, mostly to developing markets in Southeast Asia, the Middle East and South America, up over 30 percent from 2010. [ID:nL3E7GN0FT] ($1 = 81.955 Yen) (Additional reporting by Chang-Ran Kim in Tokyo)


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* Agrees in principle to make Subaru in China

* Partners communicating with Chinese regulators on deal

* Fuji's recovery at home cited for postponed announcement of deal

* Chery tie gives Fuji a foothold in China (Adds details, background)

By Fang Yan and Ken Wills

BEIJING, May 24 (Reuters) - Fuji Heavy Industries has agreed in principle to make Subaru vehicles in northeastern China with Chery Automobile, the country's largest independent automaker, two people with knowledge of deal said on Tuesday, marking the latest foreign manufacturing tie-up in the world's biggest auto market.

The Chery deal, if it goes ahead, would give the Japanese automaker a foothold in China, joining the ranks of General Motors and Volkswagen , which had already carved up a major chunk of market where vehicle sales had topped 18 million in 2010.

"Chery and Fuji have agreed on the major terms and conditions of making Subarus in the city of Dalian and are now communicating with Chinese regulators to seek their endorsement," one person briefed on the matter told Reuters.

The terms and conditions were similar with what had been previously reported, the person said, declining to elaborate.

The Nikkei business daily reported in late 2010 that the two companies were in advanced talks to build a 30 billion yen ($366 million) China plant, with initial annual capacity of 50,000 units, rising to 150,000 eventually.[ID:nSGE6BJ0CE]

New auto manufacturing ventures in China need to be approved by government bodies, including the top economic planner, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, which oversees major industry policies.

Another person close to the companies told Reuters that Fuji Heavy was still occupied with recovery efforts after the devastating March 11 earthquake and tsunami, contributing to a postponement of the announcement of its China tie.

Like all the other Japanese automakers, Fuji Heavy suffered from the disaster. Disruption to the supply chain had snapped its sales momentum, causing a loss of some 15,000 units in car sales in the few weeks remaining in the business year that ended on March 31. [ID:nL3E7GA0IH]

A Fuji Heavy spokesman said the company had no further comment after admitting late last year that Chery was among its potential partners in China.

Chery spokesman Jin Yibo said he had no information on the deal.

A formal announcement of the deal is expected in the coming months. It will make Chery the latest Chinese car maker to have a foreign partner, joining bigger auto groups SAIC Motor Corp , Dongfeng Motor Group , Chongqing Changan Automobile among others.

CHINA TIES

China, which eclipsed the United States as the world's top auto seller in 2009, is too important to miss for most industry players, including top Japanese brands Toyota Motor , Nissan Motor and Honda Motor which formed their local alliances years ago.

Fuji Heavy, has been seeking a tie in China, where only imported Subaru models, such as Legacy, Forester, Impreza and Tribeca are offered via select agents, including Pangda Automobile Trade Co , China's largest publicly traded auto dealer.

The smallest Japanese automaker had previously approached a number of Chinese automakers for a possible tie, including SAIC, a long-time partner of GM and Volkswagen, industry sources said.

Chery Auto, best known for its hot-selling compact car QQ, had explored opportunities to export Chinese-made small cars to developed markets under the Chrysler badge.

But the deal was called off after Chrysler, now controlled by Fiat , reached a similar pact with Nissan Motor . Chrysler's bankruptcy amid of a steep industry downturn in North America was also cited as a reason.

In 2010, Chery sold 682,058 vehicles, up 36.3 percent year-on-year, outpacing a 33.2 percent gain in China's car market as well as Warren Buffett-backed BYD , which sold 519,806 cars, up 15.5 percent. [ID:nTOE70B06A].

Geely Automobile , whose parent owns Volvo Cars, sold 415,286 cars last year, up 27.1 percent.

Chery, which started selling cars overseas in 2002, is now China's biggest auto exporter with year-to-date shipments exceeding 500,000 units. It operates 16 assembly plants overseas, including a $400 million facility in Brazil that will eventually be capable of making 150,000 cars per year.

In 2011, Chery aims to ship 120,000 cars overseas, mostly to developing markets in Southeast Asia, the Middle East and South America, up over 30 percent from 2010. [ID:nL3E7GN0FT] ($1 = 81.955 Yen) (Additional reporting by Chang-Ran Kim in Tokyo)


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* Agrees in principle to make Subaru in China

* Partners communicating with Chinese regulators on deal

* Fuji's recovery at home cited for postponed announcement of deal

* Chery tie gives Fuji a foothold in China (Adds details, background)

By Fang Yan and Ken Wills

BEIJING, May 24 (Reuters) - Fuji Heavy Industries has agreed in principle to make Subaru vehicles in northeastern China with Chery Automobile, the country's largest independent automaker, two people with knowledge of deal said on Tuesday, marking the latest foreign manufacturing tie-up in the world's biggest auto market.

The Chery deal, if it goes ahead, would give the Japanese automaker a foothold in China, joining the ranks of General Motors and Volkswagen , which had already carved up a major chunk of market where vehicle sales had topped 18 million in 2010.

"Chery and Fuji have agreed on the major terms and conditions of making Subarus in the city of Dalian and are now communicating with Chinese regulators to seek their endorsement," one person briefed on the matter told Reuters.

The terms and conditions were similar with what had been previously reported, the person said, declining to elaborate.

The Nikkei business daily reported in late 2010 that the two companies were in advanced talks to build a 30 billion yen ($366 million) China plant, with initial annual capacity of 50,000 units, rising to 150,000 eventually.[ID:nSGE6BJ0CE]

New auto manufacturing ventures in China need to be approved by government bodies, including the top economic planner, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, which oversees major industry policies.

Another person close to the companies told Reuters that Fuji Heavy was still occupied with recovery efforts after the devastating March 11 earthquake and tsunami, contributing to a postponement of the announcement of its China tie.

Like all the other Japanese automakers, Fuji Heavy suffered from the disaster. Disruption to the supply chain had snapped its sales momentum, causing a loss of some 15,000 units in car sales in the few weeks remaining in the business year that ended on March 31. [ID:nL3E7GA0IH]

A Fuji Heavy spokesman said the company had no further comment after admitting late last year that Chery was among its potential partners in China.

Chery spokesman Jin Yibo said he had no information on the deal.

A formal announcement of the deal is expected in the coming months. It will make Chery the latest Chinese car maker to have a foreign partner, joining bigger auto groups SAIC Motor Corp , Dongfeng Motor Group , Chongqing Changan Automobile among others.

CHINA TIES

China, which eclipsed the United States as the world's top auto seller in 2009, is too important to miss for most industry players, including top Japanese brands Toyota Motor , Nissan Motor and Honda Motor which formed their local alliances years ago.

Fuji Heavy, has been seeking a tie in China, where only imported Subaru models, such as Legacy, Forester, Impreza and Tribeca are offered via select agents, including Pangda Automobile Trade Co , China's largest publicly traded auto dealer.

The smallest Japanese automaker had previously approached a number of Chinese automakers for a possible tie, including SAIC, a long-time partner of GM and Volkswagen, industry sources said.

Chery Auto, best known for its hot-selling compact car QQ, had explored opportunities to export Chinese-made small cars to developed markets under the Chrysler badge.

But the deal was called off after Chrysler, now controlled by Fiat , reached a similar pact with Nissan Motor . Chrysler's bankruptcy amid of a steep industry downturn in North America was also cited as a reason.

In 2010, Chery sold 682,058 vehicles, up 36.3 percent year-on-year, outpacing a 33.2 percent gain in China's car market as well as Warren Buffett-backed BYD , which sold 519,806 cars, up 15.5 percent. [ID:nTOE70B06A].

Geely Automobile , whose parent owns Volvo Cars, sold 415,286 cars last year, up 27.1 percent.

Chery, which started selling cars overseas in 2002, is now China's biggest auto exporter with year-to-date shipments exceeding 500,000 units. It operates 16 assembly plants overseas, including a $400 million facility in Brazil that will eventually be capable of making 150,000 cars per year.

In 2011, Chery aims to ship 120,000 cars overseas, mostly to developing markets in Southeast Asia, the Middle East and South America, up over 30 percent from 2010. [ID:nL3E7GN0FT] ($1 = 81.955 Yen) (Additional reporting by Chang-Ran Kim in Tokyo)


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joi, 14 aprilie 2011

Volkswagen says Q1 China auto sales up 19.9 pct yr-on-yr

birou notarial


BEIJING, April 14 | Thu Apr 14, 2011 3:50am EDT

BEIJING, April 14 (Reuters) - Volkswagen AG said on Thursday it sold 548,400 cars in mainland China, Hong Kong and Macau in the first quarter, up 19.9 percent from a year earlier, more than doubling the overall growth rate of China's car market.

A total of 429,517 Volkwagen cars were delivered in the three-month period, up 18.4 percent, with Audi sales up 24.6 percent to 64,122 units, it said in a statement.

Volkswagen makes cars in China in tie-ups with SAIC Motor and FAW Group.

Rival General Motors , which makes cars, light trucks and mini vans in China, sold 685,583 vehicles in the country, up 10 percent from a year earlier. [ID:nL3E7F1135] (Reporting by Fang Yan and Ken Wills)


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BEIJING, April 14 | Thu Apr 14, 2011 3:50am EDT

BEIJING, April 14 (Reuters) - Volkswagen AG said on Thursday it sold 548,400 cars in mainland China, Hong Kong and Macau in the first quarter, up 19.9 percent from a year earlier, more than doubling the overall growth rate of China's car market.

A total of 429,517 Volkwagen cars were delivered in the three-month period, up 18.4 percent, with Audi sales up 24.6 percent to 64,122 units, it said in a statement.

Volkswagen makes cars in China in tie-ups with SAIC Motor and FAW Group.

Rival General Motors , which makes cars, light trucks and mini vans in China, sold 685,583 vehicles in the country, up 10 percent from a year earlier. [ID:nL3E7F1135] (Reporting by Fang Yan and Ken Wills)


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joi, 24 martie 2011

Pvt equity team up with hotel grps for 2nd round bids for China motel -sources

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By Stephen Aldred and Lee Chyen Yee

HONG KONG, March 24 | Thu Mar 24, 2011 5:39am EDT

HONG KONG, March 24 (Reuters) - Three listed hotel chains have teamed up with global private equity firms to submit second round bids for Chinese hotel group Shanghai Motel Management Co, an asset that could fetch about $1 billion, sources with direct knowledge of the matter told Reuters on Thursday.

A Morgan Stanley real estate fund that controls the company, which operates the popular Motel 168 brand, received the bids on Monday, the sources said. China Lodging Group Ltd , which operates Hanting hotels in China, had bid with Bain Capital LLC, General Atlantic and local private equity firm CDH Investments, they added.

Separate bids have also come in from 7 Days Group Holdings Ltd and Home Inns & Hotels Management Inc , which are said to be forming consortia with private equity firms that include Carlyle Group and Warburg Pincus LLC .

"It's all quite fluid right now and they are all talking to each other. It will probably take a few weeks before it's all sorted out," one of the sources said, referring to the second and third bidders.

The sources declined to be identified as they were not authorised to speak to the media.

Sell-side advisers Morgan Stanley, Goldman Sachs Group Inc and Deutsche Bank AG declined to comment.

Bain, Warburg Pincus and 7 Days were not available for immediate comment. Home Inns & Hotels, CDH Investments and General Atlantic Partners could not be reached for comment. China Lodging declined to comment. (Additional reporting by Denny Thomas; Editing by Chris Lewis)


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