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Dagong debuts in LatAm with its Suriname ratings

China Daily - 7 minutos 52 segundos atrás

Second sovereign assessment helps lift credit agency's worldwide profile

Dagong Global Credit Rating Co Ltd has made its debut in Latin America's sovereign credit rating market, underscoring the growing need for risk ratings following a rush of Chinese investors in recent years.

The Republic of Suriname, a small South American nation that won its independence from the Netherlands in 1975, appointed Dagong to give it a sovereign rating, a move that analysts said was a bid to woo Chinese investors.

The intention was apparent at a news conference on Tuesday in Beijing in comments by the nation's central bank governor, Gillmore Hoefdraad.

"Working with Dagong broadens Suriname's exposure here in China. We understand that their measures of risk have a solid basis. It has been a very useful engagement since the very beginning. This for us is like a steppingstone to the financial sector, foreign direct investment and trade sector openness," he said.

  China backs new global credit rating system  New global credit rating agency  For Dagong, it's the first rating in the Latin American market and its second appointed sovereign rating after Belarus, which was in late 2011. It's an important step for the Chinese rating agency's "going global" strategy since it was authorized by the European Union to operate in the EU market in mid-2013.

A spokesman for the agency told China Daily that the deal was sealed at the end of last year, and after an on-site inspection by Dagong's credit officers, the two sides decided to release the rating report following President Xi Jinping's landmark visit to Latin America.

Xi started his visit in Brazil on July 14 and then went on to Argentina, Venezuela and Cuba. The trip yielded the establishment of the BRICS Development Bank, as well as billions of dollars in agreements covering energy, infrastructure and resources.

The trip also highlighted China's growing economic clout in the region. From 2002 to 2012, China's trade with Latin America expanded 20 times to $261.2 billion.

China's outbound investment also surged in the region. The $83.4 billion in nonfinancial direct investment as of 2013 made the region China's second-largest overseas investment destination.

"Currently, China's trade and investment ties with Latin America concentrate on primary products. This will last a bit longer. But from the long-term perspective, it has to evolve to higher value-added sectors such as finance and technology," said Guo Cunhai, a researcher with the Institute of Latin America at the Chinese Academy of Social Sciences.

Suriname's relationship with China is a microcosm of China-Latin American ties. The country, with a population of just 560,000, is rich in natural resources such as gold, bauxite, oil and water.

"Relations between Suriname and China have been strengthening over the past 20 to 25 years. We have received quite a lot of support from the Chinese government, including concessional lending, infrastructure and social programs," said Hoefdraad.

Dagong assigned the country local- and foreign-currency sovereign credit ratings of BB+, each with a "stable" outlook. The report noted Suriname's gradually improving political stability and level of governance, but it also mentioned a "high risk of economic volatility stemming from its reliance on exports of primary products, as well as vulnerable fiscal and external positions that still lack a sufficient buffer".

Standard & Poor's Financial Services LLC and Fitch Ratings Inc assigned the country a BB- rating and a "stable" outlook.

Categorias: , China

Low-altitude airspace reform put on fast track

China Daily - 7 minutos 52 segundos atrás

A new regulation for low-altitude airspace management is expected to be unveiled by the end of the year in China, opening a new chapter for the general aviation industry in the country, experts said on Tuesday.

According to Gao Yuanyang, director of the General Aviation Industry Research Center at the Beijing-based Beihang University, the draft regulation has already been sent to key industry personnel for feedback.

He declined to disclose any further details but said the new rules will help spur general aviation in China and create unified standards for the industry.

Restrictions on use of low-altitude airspace have for long limited the development of the general aviation industry in China as most of the civil flights operate in the low-altitude airspace below 1,000 meters.

General aviation 'set for takeoff'

COMAC gets order boost at major airshow The China Securities Journal reported on Tuesday that the draft regulation covers various sectors such as airspace classification, approval for airspace use, flight plan reporting, industry supervision and penalties for illegal flights.

The low-altitude airspace will be divided into four categories based on the different control levels - controlled, surveillance, report and contact flight airspaces. The draft also sets the specific areas for the four kinds of airspace, the report said.

The controlled airspace has the highest security level, and flights are required to accept almost all control orders, including air traffic control, flight information, weather and warning information.

In the other three types of airspace, there are no air traffic control services, which means the flights do not need prior approvals from the authorities.

Tracking services for these flights will be provided upon request from the concerned people, the report said.

The regulation also suggests flexibility in the four types of airspace so that the borders can be blurred when required. In such cases, more low-altitude airspace would be opened to general aviation industry when the airspace is vacant.

The draft calls for the establishment of a comprehensive air traffic control system.

Encouraged by the report, prices of some general aviation-related stocks have already seen healthy upswings. However, some analysts warn that it is still too early for such optimism as it may take some time for China to fully open up its low-altitude airspace.

"We've heard similar reports about the country planning to open up its low-altitude airspace in the past, but we're disappointed at the slow progress," said Wu Xiuqian, an analyst from the Beijing-based Qianzhan Industry Research Institute.

Statistics from the institute show that the growth rates of the general aviation industry in 2012 and 2013 were both under 10 percent, although the rat reached 25 percent in 2011 due to some policy encouragement that year.

Categorias: , China

Realty mogul sets up Harvard education fund

China Daily - 7 minutos 52 segundos atrás

Zhang Xin (L), the chief executive officer of Soho China Ltd., and her husband Pan Shiyi attend a ceremony in Beijing, China, Jun 25, 2011.[Photo/IC]

The billionaire couple who founded Chinese real estate company SOHO China have given $15 million to Harvard University as part of a $100 million endowment they are establishing for underprivileged Chinese students to attend top universities around the world.

Zhang Xin, SOHO's CEO and her husband Pan Shiyi have set up the SOHO China Scholarship with the donation to Harvard.

"Getting the best education should not only be for those who have the means - it should be for those with the talent," Zhang told The Wall Street Journal.

SOHO China sees 2013 net profits slump

  Pan: China's property market, another Titanic Harvard enrolls mostly Chinese students who are sent to the United States for high school by their wealthy parents. Zhang said that the message she and her husband want to send is that SOHO scholarship money is available and "if you're good enough you should apply."

Zhang was a factory worker in Hong Kong and then studied on full scholarships at the University of Sussex and Cambridge University in the UK.

She went on to become an investment banker at Goldman Sachs Group Inc. Her husband grew up in an impoverished part of western China. The couple have a combined wealth of about $3.6 billion, according to Shanghai-based Hurun Research Institute.

In June 2013, a group led by Zhang paid a reported $1.4 billion for a 40 percent stake in the most expensive US building on the market - the General Motors office tower in midtown Manhattan.

In one of the largest purchases of a single US property by a Chinese investor, the family of Zhang, head of the largest property developer in Beijing and Shanghai, teamed up with Brazil's Safra family to buy the interest in the 50-story white marble-clad landmark once owned by Donald Trump.

SOHO China started a foundation to build schools in rural areas of Qinghai and Gansu in western China where Zhang's husband grew up. Zhang and her husband said they are looking to set up other endowments at US colleges and abroad. "It's my turn to be generous to others," she told the Journal.

China currently accounts for the largest contingent of foreign students, with more than 235,000 studying in the US in the 2012-2013 school year, up 21 percent from the previous year, according to the Journal.

Julia Chang Bloch, president of the US China Education Trust, and a Harvard alumnus, said that Harvard will accept a student regardless of their ability to pay, but the SOHO scholarship "will level the playing field for Chinese poor students to go to Harvard."

SOHO China sees 2013 net profits slump

  Pan: China's property market, another Titanic Bloch became the first Chinese-American US ambassador when she was appointed to Nepal.

The US China Education Trust, a nonprofit organization she founded in Washington, promotes US-China relations through education and exchanges. Bloch received her master's in government and East Asia studies from Harvard.

In 1988 she and her husband Stuart Marshall Bloch established the F.Y. Chang Foundation in honor of Bloch's father, Chang Fuyun, the first Chinese national to graduate from Harvard Law School.

Their foundation offers scholarships to Chinese students studying law at Harvard. Launched in 2007, the foundation also provides the Maurice "Hank" Greenberg Scholarship to Chinese students at Yunan University and Shandong University in China.

Bloch said the contribution to Harvard "is terrific, it really shows China's rising power".

"It is an example of China's maturity as a leader, as a major power, the soft power for any major country is philanthropy," she said. "China's changing philanthropy is really in its infancy."

Categorias: , China

WH aims to raise $2b in scaled-down public float

China Daily - 7 minutos 52 segundos atrás

A worker arranges fresh meat at a supermarket in Nantong, Jiangsu province. WH Group Ltd is planning an IPO in Hong Kong to repay part of the debt for last year's $7.1 billion purchase of US pork producer Smithfield International. [Photo / IC]

WH Group Ltd is set to raise $2.05 billion in a scaled-down Hong Kong initial public offering, a person with direct knowledge of the transaction said on Tuesday.

It will be the Chinese pork producer's second attempt to list this year after investors rebuffed a pricier deal.

WH Group, the world's biggest pork producer, will sell shares at a fixed price of HK$6.20 (80 cents) each on Wednesday, valuing the company at 11.5 times estimated 2014 earnings, said the person who declined to be identified because the matter is not yet public.

A spokesman for WH Group in Hong Kong declined to comment.

The revised share price is lower than the HK$8 to HK$11.25 range WH Group initially proposed for its earlier attempt at a Hong Kong IPO. The company pulled that offer, which it had hoped would raise up to $5.3 billion, in April after investors balked at the high valuation.

The IPO also floundered because the 29 banks - a record number - hired to manage the offer also sent confusing signals to institutional investors, while negative publicity over executive compensation raised corporate governance issues.

WH Group is seeking funds to repay part of the debt it assumed pay for last year's $7.1 billion purchase of the United States-based pork producer Smithfield International Inc.

WH Group, whose products include Smithfield ham and Farmland bacon in the US, has named BOC International Ltd and Morgan Stanley as the two IPO sponsors, down from an initial list of seven, the source said.

The new IPO will consist only of primary shares, meaning existing shareholders including CDH Investments, New Horizon, Goldman Sachs and Temasek Holdings Pte Ltd won't sell their stakes in the company, the source said.

 

Categorias: , China

Xiaomi prepares for peak sales period with its new smartphone

China Daily - 7 minutos 52 segundos atrás

Xiaomi Corp unveiled its latest flagship smartphone on Tuesday ahead of the autumn sales peak. Xiaomi founder and Chief Executive Officer Lei Jun (above) pledged to build the company into a "well-respected global brand". WANG JING/CHINA DAILY

Xiaomi prepares for peak sales period with its new smartphone

Xiaomi Corp unveiled its latest flagship smartphone on Tuesday ahead of the autumn sales peak, a critical period for the Beijing-based handset vendor to meet its target of shipping 60 million units.

Analysts said that China will remain Xiaomi's major market, although founder and Chief Executive Officer Lei Jun pledged to build Xiaomi into a "well-respected global brand".

The Xiaomi 4 will help the company achieve a new sales record worldwide, according to Lei.

The company said that with the introduction of the new device, its annual revenue is on track to stand at 70 billion yuan ($11.35 billion) to 80 billion yuan this year.

Tian Zheng, a senior researcher at local consultancy Analysys International, said this autumn will be an important period for Xiaomi to meet the second-half sales target.

China's smartphone market still offers plenty of potential even after years of high double-digit growth, said Tian.

"The market in China is big enough for companies such as Xiaomi to introduce a mid-end device and get a good consumer response," Tian said.

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

Lei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp, delivers a speech on the stage at a launch event of Xiaomi in Beijing, China, July 22, 2014. [Photo/IC]

Xiaomi has sold more than 57 million smartphones since being established in 2011, the company said. The figure makes Xiaomi a top local vendor although its total shipments still lag far behind South Korea-based Samsung Electronics Co Ltd.

Nicole Peng, research director of market data firm Canalys China, said the Xiaomi 4 is priced to help the company attract Chinese users of fourth-generation services.

"China isn't lacking cheap 4G phones, but [it's short of] some good quality, mid- to high-range devices like the Xiaomi 4," said Peng.

Xiaomi's new device supports China Mobile Ltd's 4G network and will be installed with other carriers' 4G standard several months from now. The price is 1,999 yuan for the entry-level model.

Peng said a large number of buyers will still be attracted to the lower-end devices the company launched previously.

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

Lei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp, delivers a speech to introduce the Xiaomi 4 smartphone on the stage at a launch event of Xiaomi in Beijing, China, July 22, 2014. [Photo/IC]

Total smartphone shipments in China reached 360 million in 2013, with the majority of the units costing less than 3,000 yuan, according to Analysys.

At Tuesday's launch, Lei delved deeply into the manufacturing details and technological complexity of the device in hopes of impressing the media and fans with the company's "exquisite" craftsmanship.

"We always wanted to make a product that is better than [Apple Inc's] iPhone. Xiaomi 4 is the latest evidence that we can pull it off," said Lei.

The iPhone-quality manufacturing prowess is a savvy promotional slogan with which Xiaomi can lure overseas buyers, especially as the company attempts to enter foreign markets, analysts said.

The company kicked off its business in India last week in a bid to lift profit margins. Xiaomi now sells devices in Southeast Asia, where the competition is less intense than in developed markets.

Building up the user numbers for its own interface platform in the early stages will be a critical step for Xiaomi to establish an overseas market base, Peng said.

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

 

Lei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp, delivers a speech on the stage at a launch event of Xiaomi in Beijing, China, July 22, 2014. [Photo/IC]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

 

Lei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp, demonstrates the Xiaomi 4 smartphone on the stage at a launch event of Xiaomi in Beijing, China, July 22, 2014. [Photo/IC]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

 

Lei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp, demonstrates the Xiaomi 4 smartphone on the stage at a launch event of Xiaomi in Beijing, China, July 22, 2014. [Photo/IC]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

 

Lei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp, demonstrates the Xiaomi 4 smartphone on the stage at a launch event of Xiaomi in Beijing, China, July 22, 2014. [Photo/IC]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

Lei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp, demonstrates the Xiaomi 4 smartphone on the stage at a launch event of Xiaomi in Beijing, China, July 22, 2014. [Photo/IC]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 


Lei Jun, founder and CEO of China's mobile company Xiaomi, speaks at a launch ceremony of Xiaomi Phone 4, in Beijing, July 22, 2014. [Photo/Agencies]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

Lei Jun, founder and CEO of China's mobile company Xiaomi, shows new photograph features at a launch ceremony of Xiaomi Phone 4, in Beijing, July 22, 2014. [Photo/Agencies]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

Lei Jun, founder and CEO of China's mobile company Xiaomi, speaks at a launch ceremony of Xiaomi Phone 4, in Beijing, July 22, 2014. [Photo/IC]

 Xiaomi to invest in India, launches budget smartphones  Top 10 Chinese smartphone makers Top 8 gadgets tech whiz are waiting for 

 

Categorias: , China

Top 10 richest families in China

China Daily - 7 minutos 52 segundos atrás

Moneyweek, a wealth management media organization, published a ranking of China's 3,000 richest families on July 21. This is the seventh time that it has come out with such a ranking.

Moneyweek said that Internet, health and consumption are three major areas where wealth is most likely to be generated.

Let's have a look at the top 10 wealthiest families.

No 10 Ding Lei's family

Ding Lei, the founder of Netease, an Internet technology company, owns 44.8 percent share in his company, which translates into a fortune of 28.47 billion yuan ($4.59 billion) for his family, according to calculations done by Moneyweek on July 4.

Ding Lei at the Netease Annual Economic Conference on Dec 16, 2013. [Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 9 Yang Huiyan's family

Yang Huiyan, managing director of Country Garden, a property developer, is so low-key that few photos of her are available. She owns 57.78 percent share in Country Garden, which translates into a fortune of 29.52 billion yuan for her family, according to Moneyweek's calculation on July 4.

Yang Huiyan at her wedding ceremony in Foshan city, Guangdong province, at the end of 2006. [Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 8 Wang Chuanfu's family

Wang Chuanfu, chairman of BYD, owns 24.24 percent share in BYD, a leading new energy vehicle maker in China, and this stake means a fortune of 30.88 billion yuan for his family, according to Moneyweek's calculation on July 5.

Wang Chuanfu, Chairman and President of BYD, speaks at a launch event for the BYD Tang during the 13th Beijing International Automotive Exhibition, also known as Auto China 2014, in Beijing, April 20 2014. [Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 7 Xu Rongmao's family

Xu Rongmao owns 64.54 percent share in Hong Kong-listed Shimao Property Holdings Limited, which translates into a fortune of 33.76 billion yuan for his family, according to calculations done by Moneyweek on July 4.

Hui Wing Mau (Xu Rongmao), Chairman of Shimao Group, attends the BFA Overseas Chinese Business Roundtable during the Boao Forum for Asia Annual Conference 2013 in Qionghai city, south China's Hainan province, April 6, 2013. [Photo/IC]

 


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 6 Zhang Zhidong

Zhang has announced in March that he will quit his executive job in six months and turn to be a technology trainer but his 3.49 percent stake in Tencent still means a 34.52 billion yuan fortune for his family, according to Moneyweek's calculation on July 4.

Zhang Zhidong, co-founder of Tencent, at a press conference in Hong Kong, China, June 6, 2004. [Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 5 He Xiangjian's family

He Xiangjian owns 36.66 percent stake in Midea Group, China's major home appliances maker, and holds a 14.22 percent share in Wuxi Little Swan Co Ltd, a washing machine maker, and owns 65.23 percent stake in Welling Holding Limited, which specializes in research and development and manufacturing of motors and its driving system.

These stakes translate into a fortune of 34.65 billion yuan, according to calculations done by Moneyweek on July 4.

He Xiangjian, founder and former chairman of Midea Group.[Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 4 Guo Guangchang's family

Guo Guangchang, chairman of Fosun International Ltd, directly or indirectly holds stake in 11 listed companies and his fortune reached 41.03 billion yuan by July 4, according to Moneyweek.

Guo's investment is diversified, ranging from pharmaceutical, insurance, to banking.

Guo Guangchang, chairman of Fosun International Ltd, speaks at the 2nd Bund Global Financial Summit in Shanghai, July 4, 2014.[Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 3 Liu Qiangdong's family

Capitalization of JD.com, China's No. 2 e-commerce platform, reached 233.95 billion yuan on July 4, which indicates that Liu Qiangdong, who holds a 20.68 percent stake in the company, has a fortune of 48.38 billion yuan.

Liu Qiangdong, CEO of JD.com, raises his arms to celebrate the IPO for his company at the Nasdaq MarketSite in New York, May 22, 2014. [Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 2 Li Yanhong's family

Li Yanhong (also Robin Li) and his family members hold a 20.70 percent stake in Baidu, China's biggest search engine, which means a fortune of 85.38 billion yuan, double the last year's amount, according to Moneyweek's calculation on July 4.

Li Yanhong, founder and CEO of Baidu. [Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

No 1 Ma Huateng

Advance Data Services Limited, which is fully owned by Ma Huateng, chairman and CEO of Tencent, holds a 10.20 percent stake in Tencent Holdings Limited, which turns out to be a fortune of 100.68 billion yuan, according to calculation done by Moneyweek on July 4.

Ma Huateng, chairman and CEO of Tencent. [Photo/IC]


Top 10 Chinese Internet firms with highest revenue

Top 10 skyscrapers in the world

Top 6 largest Chinese carmakers by revenue

Categorias: , China

Alibaba, lenders team up for SME financing

China Daily - 7 minutos 52 segundos atrás

An employee is seen behind a glass wall with the logo of Alibaba at the company's headquarters on the outskirts of Hangzhou, Zhejiang province, April 23, 2014. [Photo/Agencies]

Alibaba Group Holding Ltd teamed up with seven banks on Tuesday, jointly offering loans of up to 10 million yuan ($1.6 million) to China's small and medium-sized enterprises as the e-commerce conglomerate looks to further build a credit rating system based on online transaction histories.

The cooperation involves Bank of China Ltd, China Construction Bank Corp, Ping An Bank Co Ltd, China Merchants Bank Co Ltd, Bank of Shanghai Co Ltd, Postal Savings Bank of China Co Ltd and Industrial Bank Co Ltd.

According to the Hangzhou-based e-commerce giant, companies that had export transactions of more than $100,000 through Alibaba's online platforms over the past six months can apply for such loans. They can get 1 yuan worth of bank credit for every $1 in exports.

The online transaction record is the only thing required for the loan.

Wu Minzhi, vice-president of Alibaba Group, said that about 89 percent of SMEs in China find it difficult to get loans because they can not satisfy banks' requirements.

"As an e-commerce company with lots of transaction data on our platforms, we want to make it easy for all of the export-focused companies to do business," Wu said.

By narrowing the credit gap between SMEs and banks, Alibaba is looking at the bigger picture of building an environment based on big data that can facilitate every aspect of trade, from information to data and logistics, he said.

Wei Qiang, general manager of Shenzhen One Touch Business Services Co Ltd, Alibaba's export service subsidiary, said that more than half of the export-focused companies are expected to move their brick-and-mortar trade business to online platforms in the next 10 years.

"That will create a trade service market that is estimated to be as big as 10 trillion yuan," he said.

As they cope with rising production costs in China, many Chinese exporters are keen to get financing services. He Guodong, manger of Shenzhen Xingjisheng Electronics Co Ltd, said he secured a loan of 5 million yuan from China Construction Bank through the financing service offered by Alibaba.

"My company had an export volume of 260 million yuan in 2013. In the past, banks rarely lent to us, because they didn't trust the financial data we offered," he said. He said transaction records provided by Alibaba are very convincing, as it acts as the third party for such transactions.

Li Ye, an analyst at the Internet consultancy Analysys International, said traditional banks can actually benefit from the financing service provided by Alibaba.

"The costs for banks to do due diligence in order to grant loans to SMEs are very high. There are so many SMEs and the amounts they want to borrow aren't much compared with big enterprises. So big data can be used as an important way for banks to control credit risks without making heavy investments," she said.

Alibaba's Ma and Ma's private equity firm   Top 10 ways Alibaba is building an empire

Categorias: , China

Wealthy spending more-on property

China Daily - 7 minutos 52 segundos atrás

After a slight dip in the Luxury Consumer Price Index last year, it rose by 4 percent in 2014, according to a Hurun Research Institute report released on Tuesday.

The LCPI was also 1.7 percent higher than China's overall CPI released by the National Bureau of Statistics in June. Over the past eight years, the LCPI has risen 70 percent, while the national consumer price index is up only 29.2 percent.

The main factors resulting in the rise of LCPI have changed over time. This year, the spending was mainly on luxury property, yachts and jets, as well as education. Last year, however, the most significant categories were luxury travel, accessories and skincare products, and automobiles.

Among all categories, luxury property has increased the most, with its growth rate reaching 12.6 percent in 2014. The sustained growth of the Chinese economy, the rising numbers of wealthy Chinese and the increasing popularity of golf have caused luxury property prices to rise, said Rupert Hoogewerf, chairman and chief researcher of Hurun Report.

In order to buy a 350-square-meter golf villa in Shanghai, one would have to spend up to 25 million yuan ($4 million), about 6 million yuan more than last year. Shanghai high-grade apartments are not doing badly either. The price of a 278-square-meter luxury apartment near the Huangpu River rose 2.5 million yuan to reach 14 million yuan, Hoogewerf added.

Zhang Ye, 43, who runs a securities company in Shanghai, recently purchased a 190-square-meter villa on Chongming Island, about 90 minutes' drive from the city center. Despite its remoteness, the villa still cost him him some 5 million yuan.

The reason? "The community has golf course in it," Zhang said, adding, "Of course, the air quality in Chongming is much better. But more important, villas are scarce resources now. It is really worth investing in them at the moment," he said.

Yachts and jets have enjoyed increasing attention from wealthy consumers, their prices rising for three consecutive years, with this year's growth rate reaching 6.5 percent.

 Top 9 luxury property sales centers Top 10 Chinese cities set to sail on yachts 

Categorias: , China

Testing times for foreign fast-food chains

China Daily - 7 minutos 52 segundos atrás

Meat scandal exposes loopholes in quality control and supervision, reports Wang Zhuoqiong

A meat supplier's practice of selling expired chicken and beef to top fast-food chains in China has highlighted loopholes in ensuring quality and safety in the food supply chain in the country, pushing companies to be more proactive in auditing and testing, experts said.

Restaurants that have used products from Shanghai Husi Food Co Ltd

A number of fast food restaurant chains are clients of food producer OSI’s subsidiary in Shanghai, but food authorities had not released a list of the company’s clients by Monday evening. Following are responses from some of the fast food restaurants in China that have been accused of using outdated food from the company.

McDonald’s

McDonald’s said on Sunday night that it had informedall franchises in the country to stop using or selling the questionable products and keep all the meat from Shanghai Husi Food Co. They have organized a professional team to investigate the case and will release the results as soon as possible.

Burger King

A few Burger King products have meat from the Shanghai Husi FoodCo and all of them have been removed, the company said.

KFC and Pizza Hut

Yum! Brands, which manages KFC and Pizza Hut, said on Monday that it ordered all KFC and Pizza Hut franchises to stop using meat from Shanghai Husi Food Co and launched an investigation into OSI’s subsidiary in Shanghai. It may lead to a shortage of two hamburgers sold at breakfast at some KFC outlets and a beefdish at Pizza Hut. Yum promised to resume supplies as soon as possible.

Starbucks

Starbucks said on Monday that only one product used chicken provided by Shanghai Husi Food Co, adding that this product has been sold in only 12 provinces. All the outlets in these

areas have stopped selling that product.

Dicos

Dicos confirmed on Monday that it was supplied by Shanghai HusiFood Co, and said it has required all outlets to seal up all meatproduced by the company and stop selling one kind of breakfastsandwich. It also launched an  investigation into OSI’ssubsidiary in Shanghai and related companies to guaranteefood safety.

Source: China Daily REPORTS; ZHENG JINRAN, GRAPHIC: G. MUNRO / CHINA DAILY

Punish harshly for bad food, experts say

Food safety experts said China needs tougher measures in its laws to effectively supervise food makers and sellers.

Full story

Top chains may suffer a backlash that lingers  

Leading fast food chains in China - McDonald's, KFC and Pizza Hut - are expected to suffer a lingering impact from recent media reports involving a food supplier allegedly using meat products past their expiration dates.

Full story

The Shanghai Food and Drug Administration confirmed on Tuesday that the Shanghai Husi Food Co Ltd was found in violation of the law, after five batches (5,108 boxes) of their chicken, beef and pork were discovered to have problems.

The meat supplier, wholly owned by Chicago-based food company OSI Group LLC, sells meat to nine fast-food chains, including McDonald's Corp and KFC parent Yum Brands Inc, coffee chain Starbucks Corp and Burger King Worldwide Inc.

The involved brands have halted using products from Husi. McDonald's and Yum said they will resume purchases when they can ensure the food complies with laws and standards. Neither said what suppliers they would use in the meantime.

The scandal came as multinational food producers and retailers have expanded their outlets and factories aggressively in China, one of their most important markets.

Yum, the parent company for KFC and Pizza Hut, has opened 6,387 outlets in China so far, and it had a market share of about 5 percent in 2013.

McDonald's has 2,000 outlets, which accounted for 2.6 percent of the fast-food market last year. About half of Yum's revenue and 35 percent of its operating profits came from the Chinese market last year.

But their rapid expansion was not accompanied by a similar improvement in managerial capacity and training, resulting in continued food safety scandals, said Zhao Ping, deputy director of the Chinese Academy of International Trade and Economic Cooperation, which is under the Ministry of Commerce.

Fast-food chains, which have developed quickly in China in recent years, many through franchising, have been weak in implementing the industry standards and ethical principles that they follow in developed markets, she said.

"Multinationals should require their operations in China to follow the same standards in terms of food safety as in developed markets," Zhao said. "It is an excuse for food producers to lower their standards only because local regulations are loose and food safety and security awareness are weaker."

Companies should invest in internal training and set up appraisal systems that involve food safety issues, she said.

Zhao said fast-food restaurants are also responsible for unsafe food purchased at their outlets, because they should have supply chain controls at their logistics centers that deal with this issue before products are shipped to the stores. Even when products are labeled as qualified, fast-food chains should send samples for third-party testing.

The latest incident is "a wake-up call for Chinese consumers, who have long believed that foreign fast-food brands follow higher standards than domestic ones", Zhao said.

These fast-food brands should be prepared to lose a number of loyal customers, she added.

The incident is not a simple case of negligence by an individual company but an exposure of the systemic risk in the food supply chain, which damages consumer trust and brand loyalty, she said.

Ben Cavender, an analyst at Shanghai-based China Market Research, said the reason why it appears that multinational food companies are involved in more misconduct in China than in other markets is because most of the markets are not as big or fast-growing as the market here in China.

In many ways, suppliers in China are still "professionalizing" their operations and do not always hold same standards that apply in Western Europe and the United States, he said.

Because of all these issues, it is difficult for foreign-invested suppliers to maintain quality and offer consumers safe products the way they should, even though the supplier situation has improved a lot, he said.

Hu Min, leader of the professional team of the China Federation of Logistics and Purchasing and its specialized committee for purchasing and supply chain management, said that food safety testing standards and frequency should be improved at all stages of the logistics and supply chains.

In recent years, many international retailers have learned a lesson and put more resources into food testing to prevent food safety scandals.

Wal-Mart Stores Inc came under the spotlight early this year after a supplier's donkey meat was found to contain fox meat. It also came under fire for selling expired duck meat in 2011.

Walmart China said the company will increase its investment in food safety to more than 300 million yuan ($48.6 million) between 2013 and 2015, focusing on Increasing supplier audits and tests for suppliers.

It will increase DNA testing on meat products and spend more on facility audits and inspections of primary producers. The number of facility audits and inspections of primary producers was up 50 percent in 2013 compared with a year earlier, it said.

Meat supplier to fast-food giants raided  New scare hits fast food chains 

Categorias: , China

Testing times for foreign fast-food chains

China Daily - 7 minutos 52 segundos atrás

Meat scandal exposes loopholes in quality control and supervision, reports Wang Zhuoqiong

A meat supplier's practice of selling expired chicken and beef to top fast-food chains in China has highlighted loopholes in ensuring quality and safety in the food supply chain in the country, pushing companies to be more proactive in auditing and testing, experts said.

The Shanghai Food and Drug Administration confirmed on Tuesday that the Shanghai Husi Food Co Ltd was found in violation of the law, after five batches (5,108 boxes) of their chicken, beef and pork were discovered to have problems.

The meat supplier, wholly owned by Chicago-based food company OSI Group LLC, sells meat to nine fast-food chains, including McDonald's Corp and KFC parent Yum Brands Inc, coffee chain Starbucks Corp and Burger King Worldwide Inc.

The involved brands have halted using products from Husi. McDonald's and Yum said they will resume purchases when they can ensure the food complies with laws and standards.

In an email reply, McDonald's said it has stringent standards and procedures for supplier management. The company said it appeared that Husi had hidden its alleged malpractices from McDonald's.

"We want to find out the truth and we are reviewing this matter with the utmost care, attention and urgency," the company said.

The scandal came as multinational food producers and retailers have expanded their outlets and factories aggressively in China, one of their most important markets.

Yum, the parent company for KFC and Pizza Hut, has opened 6,387 outlets in China so far, and it had a market share of about 5percent in2013.

McDonald's has 2,000 outlets, which accounted for 2.6 percent of the fast food market last year. About half of Yum's revenue and 35 percent of its operating profits came from the Chinese market last year.

But their rapid expansion was not accompanied by a similar improvement in managerial capacity and training, resulting in continued food safety scandals, said Zhao Ping, deputy director of the Chinese Academy of International Trade and Economic Cooperation, which is under the Ministry of Commerce.

Fast food chains, which have developed quickly in China in recent years, many through franchising, have been weak in implementing the industry standards and ethical principles that they follow in developed markets, she said.

"Multinationals should require their operations in China to follow the same standards in terms of food safety as in developed markets," Zhao said. "It is an excuse for food producers to lower their standards only because local regulations are loose and food safety and security awareness are weaker."

Companies should invest in internal training and set up appraisal systems that involve food safety issues, she said.

Zhao said fast food restaurants are also responsible for unsafe food purchased at their outlets, because they should have supply chain controls at their logistics centers that deal with this issue before products are shipped to the stores. Even when products are labeled as qualified, fast food chains should send samples for third party testing.

The latest incident is "a wakeup call for Chinese consumers, who have long believed that foreign fast food brands follow higher standards than domestic ones", Zhao said.

These fast food brands should be prepared to lose a number of loyal customers, she said.

The incident is not a simple case of negligence by an individual company but an exposure of the systemic risk in the food supply chain, which damages consumer trust and brand loyalty, she said.

Ben Cavender, an analyst at Shanghai based China Market Research, said the reason why it appears that multinational food companies are involved in more misconduct in China than in other markets because most of the markets are not as big or fast growing as the market in China.

In many ways, suppliers in China are still "professionalizing" their operations and do not always hold the same standards that apply in Western Europe and the United States, he said.

Because of all these issues, it is difficult for foreign invested suppliers to maintain quality and offer consumers safe products the way they should, even though the supplier situation has improved a lot, he said.

Hu Min, leader of the professional team of the China Federation of Logistics and Purchasing, said that food safety testing standards and frequency should be improved at all stages of the logistics and supply chains.

In recent years, many international retailers have learned a lesson and put more resources into food testing to prevent food safety scandals.

WalMart Stores Inc was in the spotlight early this year after a supplier's donkey meat was found to contain fox meat. It also came under fire for selling expired duck meat in 2011.

Walmart China said the company will increase its investment in food safety to more than 300 million yuan ($48.6 million) between 2013 and 2015.

It will increase DNA testing on meat products and spend more on facility audits and inspections of primary producers. The number of facility audits and inspections of primary producers was up 50 percent in 2013 compared with a year earlier, it said.

Categorias: , China

M&A surge expected in China's real estate sector

China Daily - 7 minutos 52 segundos atrás

Market correction in China's real estate sector may lead to more opportunities for mergers and acquisitions (M&A) and asset purchases, said experts from Cushman & Wakefield, the world's largest privately held commercial real estate services company.

According to statistics from the Wind Info database, 73 M&As took place in China's real estate industry in the first half of 2014, with a total transaction volume of more than 15.2 billion yuan ($2.41 billion), 2.09 times as large as the total for the same time period last year.

In the second half of 2014, investment institutions and real estate enterprises with strong financial positions may engage in more M&As of high-quality property, said Ted Li, Director of Beijing Capital Markets at Cushman & Wakefield.

"Due to scarcity, office and commercial property in core submarkets will likely continue to be the prime choice for investment," said Li. "However, with the continuous improvement of transportation and other facilities, real estate in non-core submarkets, led by the Lize submarket, may offer long-term investment value in the future."

Categorias: , China

German healthcare group to set up hospital in free trade zone

China Daily - 7 minutos 52 segundos atrás

German healthcare and medical product provider Artemed Group will establish a hospital in the China (Shanghai) Pilot Free Trade Zone.

Artemed signed a framework agreement on Tuesday with Silver Mountain Investment Co, Shanghai Waigaoqiao FTZ 3U-Development Co and Shanghai Waigaoqiao FTZ Healthcare Center.

The hospital will be the first wholly foreign funded medical institution to set up in the FTZ. It will cover 10,300 square meters and include several medical centers including a medical image center, an independent diagnostic center, medical training center, research and development center, demonstration center, comprehensive outpatient center and inpatient center in the fields of cardiovascular disease,muscle and bone diseases, celiac diseases and lung diseases.

The 28-square-kilometer China (Shanghai) Pilot FTZ was launched in September 2013.

Under the guidelines released by authorities, a series of sectors including healthcare are opened up to foreign investors.

"The hospital will be an example for promoting the implementation of service sector's opening up in the pilot zone," said Li Yunzhang, vice general manager of Shanghai Waigaoqiao Group. "It will help further promote China's medical service level and boost the country's high-end medical industry's development."

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Categorias: , China

Infinity targets young and bold in Amazing Race

China Daily - 7 minutos 52 segundos atrás

Infiniti China Managing Director Daniel Kirchert introduces "The Amazing Race " reality show at the launching ceremony in Beijng on July 3, 2014. [Photo provided to chinadaily.com.cn]

China Daily website interviewed Infiniti China Managing Director Daniel Kirchert after the launching ceremony for 'The Amazing Race in China', the company's latest co-produced TV reality show.

Q: How long did you discuss plans to co-produce 'The Amazing Race in China' with Shenzhen Media Group? How does this program introduce the brand concept "Gan Ai"? (Gan means challenging and daring spirit, Ai represents love).

Daniel Kirchert: It has been six months since we started discussing this cooperation. We are working with Shenzhen Media as a "co-producer". Although The Amazing Race has been very successful in the US, we did a lot of research to see if we needed to incorporate some changes for the Chinese market. The show in America fits the spirit of "Gan Ai" very well as it includes elements like facing unknown challenge, daring to break through on your own, coordination with your fellow players, and amazing stories and memories.

Designing The Amazing Race with Shenzhen Media, on the one hand, is a great opportunities to build it as a successful TV reality show (in China). On the other hand, this program is a platform for potential customers and users to experience the brand spirit.

Q: How do you attract more people to come to experience the product through offline activities? Infinity has held activities very frequently this year. What has been the response?

Kirchert: Infinity Amazing Race (in China) is a good platform for Q50. We plan to attract 8,000 people and if online applications surpass that number then that would be a great achievement. We plan to target more than 20,000 people through our marketing campaigns this year.

In a reality TV show 'Where Are We Going? Dad' (season one), we introduced QX60, a model that was our focus, and now we will launch its hybrid power version soon. The reality show boosted the sales of QX60. By sponsoring the second season, we are sure that the sales will go up further this year.

Q: The Amazing Race mainly use Infinity Q50 2.0T model. How would you make a campaigns for this product?

Kirchert: In April, new high-tech luxury sport sedan Infinity Q50, including five models equipped with two engines Q50 3.7 and Q50 hybrid power, was officially imported to the Chinese market. In the third quarter, Q50 2.0T will be delivered to dealers and will start selling officially. It is the best seller among all the Q50 models. We are very confident about Q50's future in China. We particularly use Q50 2.0T in The Amazing Race to let consumers participate in this fantastic show and experience the products.

Q: What is the target market of participants?

Kirchert: Participants or winners don't have to be well-trained drivers, but they can experience and understand the products through the race. The Q50 is aimed at consumers with young spirit. People who like challenges, sports, and something interesting. They like this car because of its beautiful body and advanced technology, which fit target customers very well.

Q: American version has been operating for many years. The biggest difference between the Chinese and American version is participant's public auditions. In how many cities do you plan to hold auditions?

Kirchert: We will cover 50 cities, 50 dealers and 8,000 people are expected to participate in the audition. Online applications we will receive may well exceed this number. Although we will be unable to accept all the applicants to take part in the race, we will widen the scope next time if this show gets a good result.

Q: Many carmakers are sponsoring reality shows, what is the biggest difference between Infinity and other sponsors?

Kirchert: I have not studied other sponsor brands particularly; I think the biggest difference of Infinity is to connect with offline activities, make it as an experience platform, rather than package it as just a commercialized sponsor, which some people dislike. Making people receive it as a natural topic is the best way.

Categorias: , China

Greenland signs deal to move into metro construction

China Daily - 7 minutos 52 segundos atrás

Photo taken on Nov 15, 2011, shows a signage of Greenland on a building in Shanghai.[Photo/IC]

Property company Greenland Group is moving into the metro construction sector, with the launch of Greenland Metro Investment Development Co on Monday.

The new company signed a strategic agreement with Shanghai Shentong Metro Co Ltd and a group of other Shanghai enterprises to jointly invest and develop metro projects around China.

According to Zhang Yuliang, the chairman and president of Greenland Group, the move is an attempt to diversify business activity based on the company's advantage in property development.

The venture will combine track construction and urban development, with the subway being constructed and then development taking place along the subway line.

During the first half of this year, sales of Greenland Group amounted to 83.5 billion yuan ($13.45 billion), making it the second-largest real estate company in China after the China Vanke Co Ltd.

Amazing trains on display in Shanghai China to attract private investment in railway fund

Categorias: , China

Alibaba teams up with banks to assist cross-border e-commerce

China Daily - 7 minutos 52 segundos atrás

People walk at the headquarters of Alibaba in Hangzhou, Zhejiang province, April 23, 2014. [Photo/Agencies]

Alibaba Group announced on Tuesday it has teamed up with seven Chinese banks, offering credit up to 10 million yuan ($1.6 million) to the country's small and medium enterprises that engage in cross-border e-commerce.

The Hangzhou-based e-commerce conglomerate said the credit system is based on the transaction data generated by companies that are exporting on Alibaba's online platforms. No mortgage is involved for companies to apply for the loans.

The seven banks involved with Alibaba in the venture are Bank of China, China Construction Bank, Ping An Bank, China Merchants Bank, Bank of Shanghai, Postal Savings Bank of China and Industrial Bank Co Ltd.

Alibaba launched a rebate program in May, which pays Chinese manufacturers and suppliers up to 0.03 yuan for every $1 in value of export transactions handled through Alibaba's export service subsidiary - OneTouch. By offering rebates and financing services, Alibaba said its ultimate goal is to become a conduit for trade transactions in order to gather data that can serve as the foundation of an export-focused credit system providing trade financing to small businesses.

Alibaba's Ma and Ma's private equity firm Alibaba allegedly blackmailed by media institution

Categorias: , China

China-ASEAN trade up 4.8% in H1

China Daily - 7 minutos 52 segundos atrás

BEIJING - Trade between China and the Association of Southeast Asian Nations (ASEAN) grew 4.8 percent year on year to $220.69 billion in the first half of the year, according to the Ministry of Commerce (MOC) on Tuesday.

Investment between China and ASEAN hit $120 billion at the end of June this year, with $80 billion from ASEAN and $40 billion from China, said Chen Zhou, an official of the MOC, at a press conference.

Among ASEAN members, Singapore has continued to lead in investing in China with $7.2 billion in investment last year, Chen said.

Malaysia became the first among ASEAN members to handle more than $100 billion in trade with China in 2013, as well as the third Asian country to handle more than $100 billion in trade with China annually, after Japan and the Republic of Korea, he said.

Trade between China and ASEAN rose 10.9 percent to $444 billion in 2013, exceeding the 7.6 percent increase in China's total foreign trade.

China is the largest trading partner of ASEAN and ASEAN has emerged as China's third-largest partner, a major investment destination and an important tourist destination.

TCM harvesting in Central China Top 8 gadgets tech whiz are waiting for

Categorias: , China

Alibaba denies 'political connection' allegation

China Daily - 7 minutos 52 segundos atrás

E-commerce giant Alibaba said it will list its shares on the NYSE under the ticker name "BABA".The company filed for a nominal $1 billion initial public offering in early May, but the exact size of the float is expected to be much higher. [Photo/Xinhua]

Alibaba Group has denied allegations made by a New York Times report that claimed that the Chinese e-commerce giant had "political connection" behind it.

Alibaba posted an announcement on Sina Weibo late on Monday, saying that it strongly denies the report that is "simply a self-positioned inference and imagination". It also refuted continuous media stories that "cook up" the company's background.

"We have expressed our appreciation and respect to this era for many times. Here we would like to stress our position again: the only background we have is the market. We didn't have the backgrounds hyped by the outsiders in past; we don't need them now, and will never need them in the future!" it said in the announcement.

"China now can have, or has already had a group of large international enterprises that grow in the market and completely serve the market", it added.

Alilbaba said its press release "strictly" follows the requirements and rules of its prospectus, and the company is legally responsible for it.

Alibaba Group Holding Ltd plans to get listed at New York Stock Exchange in September, which is estimated to be one of the largest IPOs in the world.

Categorias: , China

China's debt stands at over 250% of GDP, says report

China Daily - 7 minutos 52 segundos atrás

China's debt went to more than 250 percent of the GDP by the end of June, according to a report released by Standard Chartered Plc on Monday.

In the current economic situation, the nation's credit growth should not have a momentum to accelerate strongly, the report said.

Sheng Songcheng, head of the statistics department at the central bank, said on July 15 that total social financing is likely to hit about 18.5 trillion yuan ($2.98 trillion) in 2014 and new yuan loans will possibly reach 9.5 trillion yuan ($1.53 trillion).

The report said these figures indicate China is having a steady credit growth rather than a new surge in financing.

China continues to increase leverage, said analysts at Standard Chartered. They estimated that credit growth reached 19 percent in the second quarter of 2014 while nominal GDP growth remained at 9 percent.

In a previous report on June 12, the analysts said China's debt burden is much higher than at any time in recent memory. They do not believe a debt crisis is just around the corner, partly because some of this debt is 'evergreen-able', but the level of debt is clearly dragging on investment and will continue to do so for the foreseeable future.

"The key quandary for policy makers today is not how to deleverage per se, but rather how to deleverage 'beautifully'," the earlier report said. "In other words, how does one reduce the debt burden while preventing a collapse in investment, maintaining relatively high nominal growth and minimizing job losses?"

Zhu Haibin, chief China economist at JPMorgan Chase and Co, said at a media briefing on Monday: "It's not the right time for China to deleverage because profit growth expectations have fallen in recent years and actual lending rates are climbing.

"Under current conditions, forced deleveraging will have a huge negative impact on the economy. It is in conflict with Chinese leaders' pledge to stabilize economic growth."

HSBC raises China GDP growth forecast  Wages buoy consumer confidence

Categorias: , China

Sinosure business up by 19.2%

China Daily - 7 minutos 52 segundos atrás

Photo taken on Feb 28, 2013, shows a signboard of China Export and Credit Insurance Corporation, also known as Sinosure in Beijing.[Photo/IC]

China Export and Credit Insurance Corp (Sinosure) insured $229.12 billion in the first half of 2014, a year-on-year increase of 19.2 percent, the China Securities Journal reported on Tuesday.

Short-term export credit insurance accounted for $181.38 billion; $7.62 billion was in mid to long-term export credit insurance and $18.88 billion was in overseas investment insurance.

Sinosure also paid $360 million of indemnities to businesses and helped business obtain around $130 billion of financing from banks.

 

Categorias: , China

TCM harvesting in Central China

China Daily - 7 minutos 52 segundos atrás

In Anhui province's Bozhou, also known as the "City of Traditional Chinese medicine", more than 66,700 hectares of land is used to grow raw material of TCM with over a million people employed in related industries and more than $3.2 billion in annual TCM trade.
 
Currently, the raw material of TCM "Baizhi", or angelic root, is being harvested. Farmers have to work fast to harvest, sun dry and process the angelica root in order to turn the raw material into finished product and then turn that into profit.

TCM farmers harvest Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

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TCM farmers harvest Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

Urban farming in a high-end shopping mall  Top 10 Chinese Internet firms with highest revenue  Florist clown makes success out of small business 

TCM farmers harvest Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

Urban farming in a high-end shopping mall  Top 10 Chinese Internet firms with highest revenue  Florist clown makes success out of small business 

TCM farmer harvests Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

Urban farming in a high-end shopping mall  Top 10 Chinese Internet firms with highest revenue  Florist clown makes success out of small business 

TCM farmers harvest Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

Urban farming in a high-end shopping mall  Top 10 Chinese Internet firms with highest revenue  Florist clown makes success out of small business 

TCM farmers harvest Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

Urban farming in a high-end shopping mall  Top 10 Chinese Internet firms with highest revenue  Florist clown makes success out of small business 

TCM farmers harvest Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

Urban farming in a high-end shopping mall  Top 10 Chinese Internet firms with highest revenue  Florist clown makes success out of small business 

TCM farmers harvest Baizhi in a village in Bozhou, Anhui province, July 21, 2014. [Photo/CFP]

Urban farming in a high-end shopping mall  Top 10 Chinese Internet firms with highest revenue  Florist clown makes success out of small business 

Categorias: , China
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