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News from China
Industrial robot market booms
28th August 2017

 CHINA’S industrial robot market is expected at US$4.22 billion in 2017, according to a report released at the ongoing 2017 World Robot Conference in Beijing.

 
China has been the world’s largest market for industrial robots for five years, accounting for over 30 percent of the global market, the report said.
 
It is estimated that more than 110,000 industrial robots will be sold by China in 2017.
 
China’s service robot market will hit US$1.32 billion this year, up 28 percent year on year, according to the report.
 
Nearly 300 artificial intelligent specialists and representatives of over 150 robot firms were in Beijing for the conference which ended yesterday.
 
Source: Shanghai Daily, August 28, 2017
Unicom ends rally and declines 6.7%
25th August 2017

 CHINA Unicom, which received a 78 billion yuan (US$11.5 billion) investment, fell 6.7 percent yesterday, ending a surge by the 10 percent daily cap in the previous two trading days.

 
China Unicom’s new strategic investors are Internet giants, industry leaders and special funds, including Baidu, Alibaba, Tencent and JD.com. 
They will take a 35.2 percent stake in China Unicom while state-owned China Unicom Group will hold 36.7 percent.
 
China Unicom declined 6.7 percent to finish at 8.36 yuan.
Source: Shanghai Daily, August 25, 2017
Chinese listed firms post strong net profits in H1
24th August 2017

 OVER 70 percent of Chinese listed companies reported strong profits for the first half of the year.

 
As of Monday, 1,004 Chinese listed companies had disclosed their first-half reports with total net profit up 21.2 percent year on year to 297.1 billion yuan (US$44.6 billion), according to data compiled by Wind, a leading information service provider.
 
About 74 percent of the companies registered year-on-year net profit growth in the first half of the year.
 
A total of 223 companies witnessed a year-on-year profit surge of over 100 percent in the first half, and 233 companies reported year-on-year profit growth of between 30 and 100 percent.
 
Most companies in both traditional sectors such as coal and steel, as well as a number of newly emerging industries posted strong growth on the back of the country’s economic restructuring and business environment improvement.
 
Shanxi Xishan Coal and Electricity saw net profit growth of 739 percent in the first half due to rising coal prices and expanded output.
 
Nanjing Iron & Steel’s net profit surged 730 percent, as China continues to slash excess steel capacity and product price increases.
 
“The profit growth of coal, steel-related listed companies is the result of deeper supply-side structural reform, which improves the business environment and productivity,” said Gui Haoming, chief analyst of Shenwan Hongyuan.
 
China’s manufacturing sector in June stayed above the boom-bust mark for the 11th consecutive month, with traditional sectors like oil refining and metal smelting witnessing robust growth, suggesting improved supply-demand structure, according to the National Bureau of Statistics.
 
“China’s manufacturing sector and the broader economy are likely to continue steady growth on the back of favorable macroeconomic conditions and rebounding market demand,” Gui said.
 
China is seeking to transition from an economy reliant on investment and exports of low-value-added goods to an innovation and service-driven one, and the first-half reports showed new growth engines were picking up momentum.
 
The tech-heavy small and medium-sized enterprises board witnessed net profit growth in the first six months, with new energy vehicle-related shares doing particularly well.
 
Anhui Zotye Automobile, a new energy vehicle manufacturer, saw net profit soar 494 percent year on year in the first half due to government efforts to boost green energy.
 
Companies in smart manufacturing and emerging sectors such as next-generation IT technology also saw strong profit growth.
 
China’s economy expanded 6.9 percent in the first half of 2017, with consumption, services and innovation-driven sectors taking up larger roles in the economy.
 
The statistics bureau’s data showed that hi-tech and equipment manufacturing sectors rose by 13.1 percent and 11.5 percent in the first half respectively.
 
While acknowledging the profit growth of listed companies, analysts called for more focus on hidden risks to ensure the long-term sustainable growth of listed companies.
 
“The slightly tightened market liquidity and tougher supervision to ward off financial risk will weigh on the performance of many listed companies in the future,” said a Haitong Securities report.
Source: Shanghai Daily, August 24, 2017
China Mobile offers new data packages
23rd August 2017

 CHINA Mobile will offer more data and favorable price packages to 20 million users in Shanghai from Friday as it aims to compete with its two rival state-owned carriers.

 
China Mobile’s users in Shanghai will be able to enjoy upgraded packages of 50 yuan (US$7.35) for 4 gigabytes of data on average, four times more than the previous package. An entry-level 4G package will cost 30 yuan under the new policy, down from 50 yuan for the previous package, Shanghai Mobile said.
 
The telco aims to offer users flexible choice and more value-added services like free data for video services and low-cost broadband services. For example, Shanghai Mobile users can enjoy free 30 GB data for one of the video streaming services from iQiyi, Tencent and its own Migu services.
 
China Telecom will unveil new marketing campaigns for its broadband services in Shanghai on Friday.
 
China Unicom is raising 78 billion yuan from Baidu, Alibaba and Tencent.
 
Source: Shanghai Daily, August 23,2017

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