Workers sort procured cotton in Wuqiao county, Hebei province. Mu Yu / Xinhua

Nation to sell 1 million tons of cotton reserves

China will auction an initial 1 million metric tons of cotton from its bulging State stockpiles over the next two months and will also consider purchasing when the harvest starts later this year, the country's top economic planner said on June 30.

While the State sale will add to local cotton supplies, purchases during the harvest in September will keep a floor under domestic prices, helping the world's top consumer of the fiber gradually reduce stocks without depressing the market.

The aim is "to release and then buy in, sell out more and buy in less, in order to use up State reserve stocks", the National Development and Reform Commission said.

Registration simplified for new businesses

The State Council issued a circular on June 29 vowing to accelerate the promotion of a streamlined registration process for new businesses. China plans to replace its current registration system nationwide before the end of the year, according to the document published on the central government's website.

300 chamber chiefs expected in Beijing

Organizers of a global chambers of commerce and industry convention, expected to be held in Beijing on July 6-7, say more than 300 domestic and overseas chamber leaders from 79 countries and regions are expected. Zhuang Rongwen, vice-chairman of the Overseas Chinese Affairs Office of the State Council, said the event would include meetings attended by senior Chinese officials.

Asian car factories shifted back to Europe

International car companies are expected to return some production to Europe from China as its cost advantage weakens, according to Martin Jahn, managing director of Volkswagen Group Fleet International. The move is expected to allow more central European nations to attract investment.

Jahn told Bloomberg that while previous expectations were for a "massive transfer" of automobile operations to Asia to save on labor expenditures, "we are seeing a rather opposite process at present".

Carlyle invests $120m in Shanghai ANE Logistics

The Carlyle Group, the global alternative asset manager, is to invest about $120 million (108 billion euros) in the fast-growing Chinese logistics company Shanghai ANE Logistics Ltd. Subject to the customary conditions, the transaction is expected to close in the third quarter of 2015. Equity for the transaction would come from Carlyle Asia Partners IV, said Eric Zhang, managing director of the Carlyle Asia buyout team.

CSRC vets first crude oil futures contract

China's securities watchdog said it planned to complete preparatory work for the country's first crude oil futures contract in the next three months.

Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, said it would look into crude oil industry supporting policies and examine and approve regulations and trading rules for the Shanghai International Energy Exchange Corp.

Separately, the commission also formally released new regulatory rules on overseas traders and brokerage companies participating in particular types of futures trading, which would take effect starting August 1.

Chinese mainland has largest broadband

The nation now has the world's largest broadband telecommunication network, Miao Wei, minister of Industry and Information Technology, said on June 29.

By the end of March, there were approximately 930,000 kilometers of long distance fiber-optic cables installed, and the number of 4G network users exceeded 160 million, Miao said. Some 46.4 percent of all broadband users in the country now enjoy speeds of eight megabits per second, a 5.6-fold increase on the first quarter of 2014.

Stricter controls set for steel producers

China will close any steel companies failing to meet environmental protection standards during the 13th Five-Year Plan period (2016-20), experts were told at a forum on energy saving by the steel industry on June 29. In the future, the size of domestic steel enterprises will be strictly controlled and the industry will enter a period of slower development in line with the falling use of coal.

Liaoning starts weekly cargo train to Belarus

A weekly freight train service between China's northeastern port city of Yingkou in Liaoning province and the Republic of Belarus began on June 25. It is the third cargo route between Yingkou and Europe, with current routes serving Moscow and Warsaw. The initial train carried 50 containers of mechanical equipment worth $6 million.

Amazon extends small business loan program

Amazon.com Inc will launch its business loan program for small sellers later this year in eight more countries including China, where credit is becoming a key factor in competing for new vendors and grabbing market share. The e-retail giant has previously offered the service only in the United States and Japan.

First draft of oil, gas restructuring by August

The National Development and Reform Commission has been working on a general plan for oil and gas industry restructuring since April and will publish a first draft in July or August, Shanghai Securities News reported on June 30, quoting sources close to the matter. In early June, Nur Bekri, the head of the National Energy Administration, said the restructuring of China's three oil giants, should be accelerated. Their opening-up is expected to be at the core of the oil and gas structural reform, according to energy expert Wu Jiandong.

Italy misses growth in Chinese wine market

After many years at the top, Italy has been unseated this year as the world's top wine exporter in terms of volume, and the fast-growing Chinese wine market is one of the main reasons for the drop.

According to the latest international sales figures, Spanish wine exports reached nearly 23 million hectoliters, slightly ahead of Italy, which had been in the top spot for years.

Overall, wine experts say, Italy's wine industry is in good shape. But Italian wine has failed to benefit from the growing Chinese market.Between 2013 and 2014, Italian wine exports to China declined by 1 percent, while Spain's grew by 9 percent.

China is the fifth largest wine market in the world, and the world's top market for red wine. And with its fast growth rate - China's wine consumption grew by 136 percent between 2008 and 2014 - it could surpass Britain for the No 4 spot by the end of this decade.

Shanghai FTZ to get insurance exchange

The nation's first insurance exchange will be established in the China (Shanghai) Pilot Free Trade Zone, according to a local official. Jian Danian, deputy governor of Shanghai's financial and commercial center Pudong New Area District and also vice-director of the FTZ's administration, said Shanghai is gearing up for the establishment of the exchange, as well as a national trusts registration center, in the newly expanded FTZ.

Caixin to take over PMI surveys from HSBC

Caixin Media Co Ltd said on June 30 that it would take over sponsorship of the closely watched China Purchasing Managers Index now that HSBC plc has ended its tie-up with financial information firm Markit Ltd. Chinese manufacturing and services PMI surveys will be released under the new partnership from August, Caixin said in a statement.

(China Daily European Weekly 07/03/2015 page18)