China Economic Scan - Your daily update on the Chinese economy.
In this edition: China allocates 270 bln yuan for infrastructure investment YTD, China hopes for more investment from multinationals, Shandong plans auto behemoth, Xinao gas says sales may more than double in 5 years, Chinese stocks close down on Tuesday.
Top 5 headlines
China allocates 270 bln yuan for infrastructure investment so far in 2009
- China's central government has allocated 270 billion yuan (about US$39.7 billion) for infrastructure investment so far this year, a National Development and Reform Commission (NDRC) official told legislators Tuesday.
- That amount is part of a planned total of 367.6 billion yuan in the 2009 central budget.
- Adding another 30 billion yuan from last year's budget meant that the country had already allocated 300 billion yuan to infrastructure investment since the fourth quarter of last year, NDRC vice director Mu Hong told legislators.
China hopes for more investment from multinationals
- China hopes US-based General Electric (GE) and other multinationals would increase investment, Vice Premier Li Keqiang said Monday.
- "We continue our opening-up policy and oppose trade protectionism in any form," Li told visiting GE Chairman and Chief Executive Officer Jeff Immelt, saying that China offered opportunities for multinationals to expand their business and investment.
- Li said the government was striving to support the development of high-tech and strategic emerging industries.
- Three auto parts makers, including a leading engine maker and an earthmover manufacturer, will merge to create an industrial conglomerate in Shandong province with sales projected to exceed 100 billion yuan by 2012, the latest industry consolidation move in China's fragmented auto sector.
- Weichai Holdings, Shandong Construction Machinery Group, and Shandong Auto Industrial Group, will form a venture called Shandong Heavy Industry Group Co, according to separate exchange filings by their listed units.
- The combined sales of the three listed companies amounted to more than 40 billion yuan in 2008, according to their annual reports.
Xinao Gas Says Sales May More Than Double in 5 Years
- Xinao Gas Holdings, a distributor of piped natural gas in mainland China, said sales may more than double over the next five years as demand for the cleaner-burning fuel increases.
- Sales will rise by at least 25% each year until 2014, Executive Director Wilson Cheng said in an interview today. Xinao aims to sell 2.8 billion cubic meters of gas this year, compared with 2.2 billion in 2008, the company said on April 8.
- Xinao, based in Hebei province in northern China, forecasts it will connect 750,000 more households to the gas network this year, taking its total number of customers to about 4.5 million.
China shares fall on property tax, liquidity fears
- Chinese stocks fell on Tuesday, the Shenzhen Component fell -1.57% to 10,022, the Shanghai Composite fell -0.82% to 2,610, and the Hang Seng fell -0.76% to 16,992.
- China Vanke, the country's biggest developer, fell -3% to 9.66 yuan, rival Poly Real Estate Group dropped -2.5% to 21.14 yuan and Financial Street Holding lost -3.3% to 10.15 yuan.
- Industrial and Commercial Bank of China, China's biggest commercial lender, edged +0.7% lower to 4.23 yuan while major refiner Sinopec, or China Petroleum & Chemical, fell -1.6% to 10.14 yuan.
Financial Indicators:
| Metric | Value | Point change | % change |
| Hang Seng Index | 16,992 | -130.26 | -0.76% |
| Shanghai Composite | 2,589 | -21.43 | -0.82% |
| Shenzhen Component | 10,022 | -159.86 | -1.57% |
| TAIEX | 6,683 | -51.35 | -0.76% |
| CNY/USD | 6.8335 | 0.0096 | 0.14% |
Source: China Economic Scan
