Your daily digest of the biggest business news in China, translated and summarized every day.
China's rich want to send children abroad for education
80 per cent of Chinese millionaires want to send their kids to study overseas, according to a report from Hurun.
According to the report, 3.05 million Chinese students studied abroad between 1978 and 2013 and 410,000 people went abroad for education in 2014.
Chinese students make up the largest proportion of foreign student body in the US, Britain, Australia and Canada.
For Chinese millionaires, the UK is the favourite destination for high school education and the US is the preferred place for higher education.
Further interest rate cuts expected: Chinese bank
One of China’s leading domestic investment banks, China International Capital Corp, predicts the central bank will cut interest rates further or lower the capital reserve ratio to address the problem of high funding costs for companies.
According to a note released by the bank, the latest weak HSBC PMI number suggests the country’s manufacturing sector is still under pressure and past policy remedies have not been effective. The best way to address the problem is to cut interest rate according to the report.
The bank estimates the latest move from the central bank would save 360 billion yuan in terms of cost of funding for companies, which amounts to 0.6 per cent of GDP.
China weighs ban on tobacco advertising
China’s State Council is considering a nation-wide ban on smoking indoors as well as at major sporting venues and other public spaces.
The proposed new law also stipulates that tobacco-packaging needs to contain health warnings as well as graphic images of tobacco related illnesses.
Tobacco companies will also not be allowed to place ads in movies under the proposed new rules.
Chinese direct FDI soars 40 per cent a year
Chinese foreign investment increased 40 per cent a year for the last 11 years between 2002 and 2013, according to data from the Ministry of Commerce, the National Bureau of Statistics and The State Administration of Foreign Exchanges.
The Chinese Academy of Social Sciences, a leading state-owned think tank, also warned against the risk of investing in developing countries in Africa and Latin America. However, they also note some of these countries have better natural resources as well as stronger political ties with Beijing.
The think tank classifies countries like Germany, Australia, Canada and the US as safe and attractive destinations, awarding them with AAA or AA ratings.
Chinese province welcomes Valemax
The Communist Party secretary of Jiangsu province has expressed his approval to allow a 400,000 tonne Valemax super commodities carrier to dock at ports in Jiangsu province.
Brazilian iron ore giant Vale has been fighting hard to get docking rights for its fleet of Valemax carriers, which are designed to reduce transport costs for its iron ore.
Australian producers like Rio and BHP enjoy transport cost advantages over Vale.
Chinese shipping countries have been lobbying the Chinese government to prevent Vale from docking at Chinese ports. Vale established an iron ore distribution centre in Malaysia to drive down its costs.
Vale produces 80 per cent of iron ore in Brazil.
Chinese IPO backlog
640 companies are awaiting approval from the Chinese Securities Regulatory Commission to be listed on the country’s stock exchanges after the temporary ban on listings was lifted this year according to Caijing.
There has been a dramatic decline in the number of Chinese companies waiting for the regulatory green light since the beginning of 2013 when Beijing launched a crackdown on fraudulent reporting amongst companies.
The number has reduced from 900 to 600 since early 2013.
Chinese media reports suggest the regulator is exercising careful scrutiny over the IPO applicants after a string a scandals.