Saturday, April 20 2024 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
HONG KONG - The sale of LED products and the emerging markets of Russia and the Chinese mainland are the brightest hopes for the global lighting industry, according to participants at the HKTDC Hong Kong International Lighting Fair.
BEIJING - China- and Japan-based institutions account for more than two-thirds of the 25 largest banks by pro forma assets in the Asia-Pacific region, according to US-based SNC Financial. Beijing-based Industrial & Commercial Bank of China Ltd. takes the title of largest bank in the region with total assets of US$2.953 trillion at March 31. The bank also recently topped the list of largest banks in the region by market cap.
TAIPEI - Taiwan will hold its leading position in equipment expenditure for semiconductor manufacturing in 2013 despite a contraction in the global market, according to global industry group SEMI. Led by Taiwan Semiconductor Manufacturing Corp. (TSMC), the world's largest contract chip maker, Taiwan is expected to invest US$10.43 billion in semiconductor equipment this year, up 9.4% from US$9.53 billion in 2012, said SEMI, the global industry association serving the manufacturing supply chain for the micro- and nano-electronics industries.
HONG KONG - Hong Kong and China’s Central Government have signed what is termed Supplement X to their Closer Economic Partnership Agreement (CEPA).A highlight for the funds and securities services industry is that the Mainland has agreed to actively study mutual recognition of fund products between the Mainland and Hong Kong.
BEIJING – China’s National Bureau of Statistics (NBS) has revised 2012 GDP growth down by 0.1% to 7.7% for a total of RMB 51.89 trillion, 38 billion less than previous calculations. Output growth in secondary industries was 0.2% lower than the previous figure. The NBS reduced the output value of the wholesale and retail sector by RMB85.2 billion and raised the value of the financial sector by RMB12.2 billion.
NEW DELHI - Adding to the dismal mood amid slowing growth and currency depreciation, India’s GDP growth has slowed to a disappointing 4.4% y/y in the second wuarter from 4.8% in 1Q13, weighed by a contraction in investment and a pullback in private consumption, offsetting higher public spending. The GDP outturn is the slowest since Q1 2009.
JAKARTA - Inflation was better than expected, but any sense of relief dissipated when Indonesia announced a very large trade deficit. With the market so focussed on deficits, reaction in currency markets was, not surprisingly, negative. Indonesia’s July trade deficit was the largest on record at USD2.31 billion, widening from a deficit of US$857 million in June. Exports were weaker and imports much stronger than expected.
GENEVA –The International Air Transport Association (IATA) says global air cargo traffic volumes for July showed continuing modest improvement. Global freight tonne kilometres (FTKs) were up 1.2% in July on-year, against 0.9% in June, as growth in Europe and the Middle East offset weakness in Asia.
SYDNEY - China is set to overtake the US as the key overseas trading partner for the Australian SME sector, with the majority importing from China rather than exporting to it, according to a survey by HSBC Australia. With China’s middle class expected to reach more than a billion people by 2030, HSBC says Australian SMEs should consider the consumer market opportunities in China rather than just seeing China purely as a manufacturing hub.
HONG KONG – Australia’s AMP Capital is to establish a funds management company in China with China Life Asset Management Company, a subsidiary of China Life Insurance (Group) Company, China's largest insurance group, institutional investor and corporate pension manager. China Life AMP Asset Management Company Limited will offer retail and institutional investors in China access to leading investment solutions initially in domestic listed equities and fixed income.
TOKYO - In a positive sign that deflation is ending, Japanese CPI inflation picked up in line with expectations to 0.7% y/y in July, its highest rate since end-2008, although still well short of the official 2% target. In addition, after a dip in June, July activity indicators picked up, providing further evidence that expansionary monetary and fiscal policies are working in the right direction.
BEIJING - China’s August official Purchasing Manager’s Index (PMI) has risen for a second consecutive month to 51.0, up from July’s 50.3, indicating that growth momentum has accelerated thanks to faster implementation of the fiscal programme and “mini stimulus” initiated by the new Government. ANZ Bank says its calculations show that 58% of China’s full-year budget will be spent in the second half.
SHANGHAI - The Shanghai No. 1 Intermediate People’s Court - before a trial on the merits of the case - has issued a preliminary injunction order against a former employee of the Chinese subsidiary of a US-based pharmaceutical company. Lawyers Baker & McKenzie say the injunction restrains him from disclosing, using, or allowing others to use certain documents containing trade secrets that he downloaded from the company’s database without authorisation. In addition, the court issued an asset preservation order to freeze the ex-employee’s real property and bank account pending the trial.
JAKARTA - Amid further downward currency pressures, Indonesia’s central bank has lifted interest rates by 50 basis points to 7%, the highest level since June 2009. The move comes exactly two weeks after BI kept rates on hold at its regular scheduled policy meeting on August 15. BI has now lifted rates by a cumulative 125 basis points since June in response to both a surge in inflation (8.6% y/y in July) from an administered fuel price increase on June 24, and currency pressures.
NEW DELHI - In a bid to curb the downward currency spiral – the rupee this week reached a fresh low of 68.8 to the US$ - the Reserve Bank of India has opened a special window to supply dollars to public sector oil companies. The latest measure comes on top of steps taken in recent weeks that include tightening short term rupee liquidity, curbs on gold imports, restrictions on residents’ capital outflows, easier norms for overseas borrowing, and higher foreign investment limits across key sectors including multi-brand retail.
BEIJING - E-commerce in China reached a value of RMB4.35 trillion in the first half of the year, up 24.3% from a year earlier, according to the China e-Business Research Centre, and is expected to overtake that of the US later this year. Total spending by Chinese consumers through online shopping reached US$212.4 billion in 2012, compared to US$228.7 billion in the US, according to Bain & Company. The market has grown at an average rate of 71% from 2009 to 2012, versus 13% in the US, and its total size is expected to reach RMB3.3 trillion by 2015.