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News from China
Diesel falls as German car sales climb
4th September 2017

 SALES of new cars in Germany rose in August, official figures showed yesterday, but uncertainty over the future of diesel saw registrations of vehicles powered by the fuel continue to slide.

The total number of new registrations on German roads rose by 3.5 percent compared with the same month in 2016, the federal transport authority KBA said, reaching almost 254,000 vehicles.
That was faster than growth of 1.5 percent in July.
Registrations of diesel cars fell by almost 14 percent year on year last month.
Prospective buyers in Europe’s largest economy have been spooked by politicians’ response to mass cheating on regulatory emissions tests to conceal excessive levels of nitrogen oxides.
Some cities are mooting bans on heavily polluting vehicles at certain times to tackle the resulting air pollution.
Chancellor Angela Merkel said she was “working to prevent driving bans” as a gathering of mayors of badly affected cities and towns got underway ysterday.
Over the year from January to August, only around 40.9 percent of new cars registered were diesel-powered, the VDA auto industry federation said, down from 46.7 percent over the same period last year.
Looking at the different brands, Volkswagen — at the heart of the diesel scandal — was the largest single carmaker by registrations, with 43,500 or 17.2 percent of the total.
Source: Shanghai Daily, September 5, 2017
China ends 727 steel plants for ‘ditiaogang’
31st August 2017

 CHINA has closed 727 steel plants for producing “ditiaogang” — low-quality steel made from scrap metal — since authorities called for eliminating such production at the end of last year.

A list of such plants categorized by provinces was published on, the China Iron and Steel Industry Association’s website.
A total of 28 provinces have cracked down on local low-quality steel producers following the central government’s command last November.
They have also named the companies, which were integrated by the association’s website into the list.
Liaoning Province tops the list, closing down 66 companies producing the low quaity steel, followed by Jiangsu Province and Sichuan Province, which each closed 63.
Other provinces which have shut down more than 30 such plants include Yunnan, Shandong, Hebei and Fujian.
The low-quality steel problem is nationwide and includes remote regions such as Tibet and Xinjiang. But most illegal plants are along the east coast. Provinces such as Jiangsu and Shandong are among “the most afflicted areas” the National Development and Reform Commission says.
The list does not include the capacity of the plants. But lwo-quality steel production has been reduced by at least 120 million tons in the first half of the year, various media outlets have reported, quoting Industrial Securities.
Authorities have been urging local governments to overhaul steel industry operations in their areas and close such plants.
Source: Shanghai Daily, August 31,2017
Renault-Nissan creates e-car JV with Dongfeng
30th August 2017

 RENAULT-NISSAN and China’s Dongfeng Motor Group said yesterday they will set up a new joint venture to develop electric vehicles in China.

The Hubei-based joint venture, eGT New Energy Automotive Co Ltd, will focus on developing and selling electric vehicles in the China market. The electric vehicles will be made at Dongfeng plant, which has a production capacity of 120,000 vehicles a year, from 2019.
EGT will tap electric vehicle technologies and car design expertise from Renault-Nissan, and take advantage of competitive manufacturing costs from Dongfeng, according to the statement published by the companies. The value of the deal has not been disclosed.
“This marks a deepened and strengthened strategic cooperation between Dongfeng and Renault-Nissan,” said Zhu Yanfeng, chief executive officer of Dongfeng.
“We expect to meet the transformation trend of the market in China, where cars are becoming light, electric, intelligent, interconnected and shared,” Zhu added.
Under the agreement, Renault will hold 25 percent of eGT, Nissan will own 25 percent and Dongfeng the remaining 50 percent.
Carlos Ghosn, chairman and chief executive officer of Renault-Nissan, said the creation of the new joint venture with Dongfeng will develop competitive electric vehicles for the Chinese market.
Global automakers are investing heavily to develop electric vehicles for China, responding to rising demand and government pressure on the industry to speed up technology development.
Chinese planners see electric cars as a promising industry and a way to clean up smog-choked cities.
They have supported sales with subsidies to buyers, while a proposed quota system will require automakers to meet targets for electric vehicle production or buy credits from competitors that do.
China is the world’s largest market for electric vehicles.
Sales of pure-electric and gasoline-electric hybrids in China rose 50 percent last year over 2015 to 336,000 vehicles, accounting for 40 percent of global demand.
Renault SA and Nissan Motor Corp share technology and production under an alliance.
Source: Shanghai Daily, August 30, 2017,
Home market sees 1st batch of supply
29th August 2017

 SHANGHAI’S new housing market recorded its first batch of supply in four weeks while home-buying sentiment continued to be slack.

The area of new homes sold, excluding government-subsidized affordable housing, fell 4.2 percent to 87,000 square meters in the seven days ended Sunday, Shanghai Centaline Property Consultants Co said in a report yesterday.

Outlying Jiading and Qingpu districts led, with both posting weekly transactions at around 14,000 square meters. But that was a plunge of 33.3 percent and 17.6 percent, respectively, from the previous week.

“New supply finally returned to the city’s new home market after staying at zero for three consecutive weeks, which was very rare,” said Lu Wenxi, senior manager of research at Centaline. “Though only one project was released to the local market, that might still herald a recovery of developers’ sentiment.”

One housing project in Anting, Jiading District, launched some 45,000 square meters of new houses for sale last week, most of which were apartments whose areas were between 75 and 107 square meters.

Notably, it was the first housing project in Shanghai where a lottery-like registration system was implemented to decide the purchasing orders of home buyers — a latest effort by the local government to protect the rights and interests of buyers as well as to crack down on illegal sales in the real estate market.

New homes sold for an average 50,060 yuan (US$7,515) per square meter, up 8.6 percent week on week, according to Centaline data.

Source: Shanghai Daily, August 29, 2017

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