China takes steps to liberalize the market of gold in the country, will increase the number of banks allowed to trade in international metal markets. It is further declared and measures aimed at promoting the creation of investment products linked to gold, reports Financial Times. These steps are likely to affect the international market, as can be expected to increase liquidity in the trading of gold. Plans of the Central Bank of China comes at a time when investors in the country directed record amounts of money to gold. Proof of this is that last year the country bought 73 tons of gold, which is a huge growth compared to 18 tonnes bought in 2007. Analysts say the new measures will certainly increase the liquidity of the domestic market, but more positive is that the expected development of financial products based on metal. At present, China has the largest gold mining in the world and is second in consumption of the metal after India. However, local market is not sufficiently developed in terms of investment products. News affect the gold price and it rose to 1,190 dollars an ounce.
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The Japanese car manufacturer Honda announced on Tuesday that the proposed increase of 24% of wages for factory workers in the company’s spare parts in China. The offer comes after the ongoing strike at the factory, which blocked the production of the group in the country. Honda is ready to increase by 366 yuan (44 million) the average wages of workers in its factory in Foshan, which monthly salary will reach 1,910 yuan (228 million). Following the proposal work in the factory was partially restored, reports the manufacturer. According to the company the majority of workers have accepted the proposal, pending further negotiations with those who are unhappy. To serve as a mediator in the talks representatives of local authorities, designated by Honda. However, their task is difficult as those who still protest appear determined not to allow recovery of production and seek to prevent his colleagues to return to work. “We’re not satisfied. We want an increase of 800 yuan (95 million), “said one of the strikers.
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For the first time in 14-year history of the ranking of the largest companies in the world to be prepared by the Financial Times, number one in market capitalization company in the world is from China. This is PetroChina, which managed to beat current leader Exxon Mobil. As of March 31 the market capitalization of PetroChina was up to 329.3 billion dollars, up 13 billion dollars more than the capitalization of Exxon Mobil. Total market capitalization of the 500 largest companies within the prestigious FT Global 500, has risen by as much as 50 percent per year and reached 23.5 trillion U.S. dollars. Nine of the ten companies with highest market capitalization were American and Chinese, with the exception of the top 10 only makes BHP Billiton. The total number of Chinese companies in the ranking is 21, which is six less than last year. The company, occupying last place in the rankings, has a market capitalization of $ 16 billion, which is 60 percent more than last year. In the list includes companies from around the world, as a condition for participation is freely traded shares are at least 15 percent of the capital.
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The rate of Chinese yuan against the dollar, the bilateral economic cooperation and eliminate barriers to it, Iran and North Korea – these were the first topics that spoke to leaders from the U.S. and China participating in the two-day US-China Strategic Economic Dialogue and the High Level Chinese capital, transmit news agency. U.S. Secretary of State Hillary Clinton urged China to work with the UN coordinated response to the actions of North Korea accused South Korean sinking of the battleship at the end of March forward AP. Opening two days of US-Chinese high-level talks in Beijing, Clinton said he should be held accountable by Pyongyang about the tragic accident claimed the lives of 46 South Korean sailors who, under international investigation, was caused by a torpedo, launched from North Korean submarine. China is the main ally of North Korea and now remains neutral on the issue. Call Clinton a serious challenge what happened and urged Pyongyang to stop its provocative actions. Clinton on the occasion of Iran expressed the view that the draft resolution with new penalties on the Security Council, supported by China, will send a clear signal to Tehran, AFP reported. The message of this project is to Iran: perform its obligations or face growing isolation and the consequences thereof, Clinton warned. On the first day of summit talks in Beijing, U.S. Minister of Finance Timothy Gaytnar urged Beijing to reduce trade barriers and to develop a more balanced economy, Reuters reported.
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The luxury German car manufacturer Daimler plans to develop cars powered by electric to be sold in China, together with the company’s batteries BYD. The Agency notes that this transaction highlights the dependence of the maker of Mercedes-Benz from outside companies through the development of cars with zero emissions of carbon dioxide. The new Union of Germany’s continued “fashion” among European cars producers in recent years dealt with the developers of rechargeable batteries in order to gain market share increasing of low-emission vehicles. Earlier years the Japanese Toyota, Nissan and Mitsubishi Motos, also enter into joint factories with Panasonic, NEC and GS Yuasa Corp, which required them gave rechargeable batteries. The share of BYD on the Hong Kong stock exchange and investment guru Warren Buffett. The company is developing and selling batteries for Finland’s Nokia and U.S. Motorla. The company will provide know-how on building of rechargeable batteries, while Daimler will share experience in development of electric cars
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The Central Bank of China has ordered banks in the country to raise the level of reserves as new rules come into force from today forward CNBC, citing unnamed sources. Thus in practice has entered into force the decision to increased requirements to the level of reserves for which the information leaked last week. The new provision requires that the level of reserves to increase by 0,5 percentage points. Information that currently is not official, says that the requirements imposed on certain financial institutions, which officials say have a risky behavior. Last week Reuters reported that similar requirements are imposed on CITIC Bank, which is the seventh largest bank in the country and the largest lender Industrial and Commercial Bank of China.
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The Chinese oil company PetroChina obtain permission to harvest oil from the Canadian oil sands deposits in the Canadian province Albarta. The price which will give energy company to acquire a 60% share in both deposits is 1.7 billion dollars, police BBC. Both fields have a common saving of 175 billion barrels of oil. The only Saudi Arabia has more deposits of similar type. but the extraction of raw materials of sand is expensive and difficult process, says BBC. Now because of the increasing price of raw material (77% jump from the beginning of 2009) in such investments provide a return on deposits, the agency adds. The deal was great proving the Chinese economy is developing faster and getting second strongest economies of the world. The company is the largest Chinese petroleum companies, operating all over the world.
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Car production in China exceeded 12 million number for the first eleven months of the year. Above this limit are selling cars in the country, which had not happened before. Association of Automobile Manufacturers in China car sales expected to exceed 13 million throughout 2009, the Air Force forward, citing the state news agency Xinhua. So far in China were manufactured 10 million cars a year. Major role in the tremendous growth of the automotive sector in 2009 have played the actions of the Chinese government to encourage consumers and promoting manufacturing plants. The government took measures to support the acquisition of smaller cars, making tax rebates to buyers. Moreover, subsidies were also introduced in replacement of old cars to new. Only in November, according to preliminary data in the country sold 1.35 million cars. With growth of over 50 percent annually boasts the largest producer in China, Shanghai Automotive Industry.
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China should take advantage of the shock waves created by the crisis in Dubai to buy gold and oil. Such is the opinion of a senior Chinese official, who cares for the supervision of some of the biggest companies in the Asian country. According to Syaonan Ji, who is chairman of the supervisory board of large companies in the committee for the supervision and administration of state assets (State-Owned Assets Supervision and Administration Commission – SASAC), purchases may be effected by means of foreign exchange reserves of China, transmit Market Watch. “Although it is unclear to what extent the crisis in Dubai will affect local and global economy, it will continue for some time and this may give China investment opportunity to use part of their reserves to buy gold and oil,” said Syaonan today. The Commission, headed Syaonan which is directly subordinate to the State Council of China and is responsible for management of state companies. Therefore, his opinion may be regarded as a signal that such intentions truly are discussed. Commentary is consistent with China’s overall strategy to increase physical stocks of key raw materials such as gold, copper and other commodities.
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The problem of global climate change will not be solved without the leadership and responsibility in China, “said Swedish Prime Minister Fredrik Reinfeldt as the rotating EU presidency. “We can not solve the climate challenge facing humanity, except for China to take a leadership position and to assume responsibility,” Reinfeldt said of the summit between the EU and China. Rotating EU presidency stressed that global efforts, “not sufficient” and “must do more,”. During a joint press conference, Chinese Premier Wen Jiabao said that China’s promise to slow the growth of greenhouse gases is a significant contribution to global efforts. “China attaches great importance to the forthcoming conference in Copenhagen. I will visit her to represent China, “he said.” China wants to work to focus the conference in the right direction, “added Out, speaking for the expected conference 7-18 December, aimed at achieving a new agreement on climate changes, Darik said.
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