Caijing rocked by resignations

Caijing rocked by resignations

The general manager of China’s most influential and profitable financial magazine has resigned along with dozens of her staff after a scuffle over editorial control with the publication’s powerful owner.
Zhang Xianghui, public relations director at Caijing Magazine, told China Daily yesterday that the journal’s Daphne Wu Chuanhui and nearly 70 employees, or more than two-thirds of the business department, had resigned.
Dai Xiaojing, manager of media operations at the Stock Exchange Executive Council (SEEC), Caijing’s owner, has been appointed the new general manager, Zhang said.
The mass resignations followed escalating pressure in recent months by the SEEC to rid the outspoken magazine of its widely reputable editorial independence, two inside sources told China Daily on the condition of anonymity.

“The key is, the SEEC wants to intervene and censor all of our financial stories, particularly cover stories and investigative reports. That’s unbearable (for us),” one source said.
“None of the real stories we used to run would have been OK (with the SEEC) if they stepped in,” the source said.
Hu Shuli, Caijing’s founder and editor, is also likely to leave the publication, according to both sources, who said most editorial staff will “fight on” with her and leave if she does.
Zhang, for her part, refuted the allegations, stressing that the reshuffle so far is normal and has not involved Hu or the editorial department.
A veteran journalist herself, Hu has kept the Beijing-based bi-weekly vocal on issues relating to official scandals, corporate fraud and public health emergencies since it was founded in 1998.

Caijing boasts a circulation of 225,000 and is a major money-maker for the Hong Kong-listed SEEC Media Group, which owns and publishes the magazine. The journal pulled in HK$ 54.1 million ($6.9 million) in the first half of this year, contributing about 47 percent of the SEEC Media Group’s total revenue during the period.
Despite heightened expectations from its owner and publisher in the face of the economic downturn, earlier reports say the 56-year-old has maintained that editorial integrity is fundamental and pressured the group into surrendering majority control by bringing in outside investors.
If this failed, Hu may resign to launch a new venture, according to the reports.
The SEEC Media Group was not available for comment.

Google sued over copyright issue

Google sued over copyright issue

A Chinese female writer accusing Google China of copyright infringement has filed a lawsuit against the company in a Beijing court.
Mian Mian, a well-known Shanghai-based novelist, said the Haidian District People’s Court is scheduled to hold a hearing on the case on Dec 29.
“Google earlier argued that they didn’t violate copyright law as they only displayed a small amount of text of my book, but I think their move has seriously hurt Chinese writers’ rights,” Mian Mian told China Daily yesterday.
Mian said Google scanned her entire novel, titled Acid Lover, published by the Shanghai Joint Publishing Company, without notifying her or paying her for copyright permission.
Google China deleted Mian’s Acid Lover from their website on Nov 15.

Mian Mian
But she said a Google key-word search still brings up passages of her book.
“This is a brutal way to introduce my literary work, because the incoherent passages seen online ruin my story,” she said.
“I also want to ask Google why they only show respect regarding copyright protection to famous American publishing houses,” Mian Mian said.
Google only scanned the cover picture of another of Mian’s novels, titled Candy, published by Little Brown Publishing House under Time Warner.
Mian asked Google to delete all texts about her book and make a public apology to her.
The author is also demanding 60,000 yuan ($8,785) for economic and mental compensation.
Sun Jingwei, Mian Mian’s lawyer from the Beijing-based Yingke Law firm, said yesterday he has prepared evidence for the case, even though the book has been deleted.
“Mian is the first Chinese writer who accuses Google for copyright in the name of herself, and the case could encourage more Chinese writers to get involved in copyright protection,” he said.
Late last month, the China Written Works Copyright Society (CWWCS), which protects Chinese writers’ copyrights, said Google has scanned 18,000 books by 570 Chinese writers without authorization, for its library, Google Books, which is available only to Internet users in the US.
Google agreed on Nov 20 to provide a list of Chinese books it had scanned to publish in its digital library, but the company still refused to admit having “infringed” copyright laws.
Zhang Hongbo, deputy executive director-general of the CWWCS, said Mian Mian’s lawyer informed him of the news a week ago.
“If Mian Mian wins this lawsuit, it helps our negotiations with Google,” Zhang said, noting that an individual writer suing Google should not be confused with the official negotiation.
Chen Qirongspokesman for the Chinese Writers Association (CWA), said the writer’s individual lawsuit does not contradict the official negotiation organized by CWA and CWWCS, but could work together to put more pressure on Google.
“The CWA and CWWCS is not doing enough to protect the writers’ copyrights, which should be strengthened in future,” he said.
He also said the CWA approves of and appreciates Mian Mian’s lawsuit to safeguard her interests.
Google Books has faced copyright criticism across the world.
According to earlier reports of AFP, Google and US authors and publishers reached a settlement last year over a copyright infringement suit filed against Google in 2005.
Under the settlement, the Internet search giant agreed to pay $125 million to resolve outstanding claims and establish an independent “Book Rights Registry,” which would provide revenue from sales and advertising to authors and publishers who agree to digitize their books, it reported.

Chihong forms JV with Selwyn

Chihong forms JV with Selwyn

 

By becoming a strategic partner in the Selwyn project, Chihong expects to open up the Asian markets for project financing. [Agencies]
Zinc maker Yunnan Chihong Zinc &Germanium Co Ltd (Chihong) will invest $94 million to set up a joint venture with Canada’s Selwyn Resources Ltd (Selwyn) to operate the Selwyn zinc-lead mining project.
Chihong and Selwyn will hold identical stakes of 50 percent each and have equal board representation in the venture, the Chinese company said yesterday in a statement.
The Chinese company plans to raise the $94 million for the venture from bank loans and cash reserves. The funds would be used for advanced exploration, engineering, and for initial construction activities, including the preparation of a feasibility study.
Selwyn, on its part, would transfer its mineral and other assets associated with the Selwyn project in Northwest Canada to the joint venture, according to a statement issued by the Canadian company on Monday.
Harlan Meade, CEO of Selwyn, said in the statement that the formation of the joint venture is a major step towards advancing the Selwyn project to production.
“Chihong becoming a strategic partner for the Selwyn project opens up the Asian markets for project financing, which is seen as strategically very important in the evolving financial markets for financing resource development,” said Meade.
“The Selwyn project has immense potential to become a major zinc-lead mine. The successful development of the project can bring significant growth to both Chihong and Selwyn,” said Ying Dong, chairman of Chihong.
The Selwyn project, located in eastern Yukon, Canada, is one of the largest undeveloped resources of zinc and lead in the world. Preliminary explorations conducted by Selwyn have defined 15 mineralized zones with high-grade zinc-lead resources. Feasibility studies have, however, not been carried out at the site.
Analysts said the project would boost Chihong’s mineral reserves, but production would not start in the short term.
“It is an undeveloped project in its initial stages, and it is too early to calculate the cost and revenue,” said Wang Xiaodan, an analyst with China Merchants Securities.
Closing of the transaction is targeted for May 2010 and is subject to completion of non-technical due diligence and formal documentation, including regulatory approvals.
According to the statement from Chihong, upon completion of the transaction, the joint venture will undertake initial underground development and advanced exploration of the deposits.
Chihong is an integrated lead and zinc producer with total assets of 6 billion yuan. Based in southwestern China’s Yunnan province, the company has several operating mines and smelters in China.
Yang Weihua, international cooperation manager of Chihong, said in phone interview yesterday the company is also eyeing other smaller projects abroad, mainly in Canada and Australia.

Vale charts big plans for China

Vale charts big plans for China

Brazilian mining company Vale SA has signed independent ore contracts with Chinese steel mills for fixed freight charges to further expand its presence in the mainland, ahead of next year’s benchmark iron ore pricing negotiations.
Some Chinese companies are believed to have signed three to four year price contracts with Vale for fixed freight charges which are 20 to 30 percent lower than normal rates, said an executive with a State-owned steelmaker.
Vale is also believed to be bringing forward a series of plans like output expansion, a new distribution center and the construction of 16 large ore carriers to reduce transportation costs between China and Brazil. The executive, however, refused to disclose any further details on grounds of confidentiality.
Vale’s distribution center for the 400,000-ton ships may be established at Qingdao. The port has already started work on four 400,000-ton terminals, the first of which is likely to be completed by the end of next year, according to Chinese newspaper National Business Daily.
Unlike BHP and Rio, which ship ore from Australia, Vale needs to transport iron ore from Brazil, resulting in much higher freight costs.
Freight costs from Brazil to China were around $35 per ton yesterday, while the spot price of Brazilian iron ore was 850-860 yuan ($125) per ton.
To help reduce transportation costs, Vale plans to build the 16 huge carriers that are expected to trim costs by 30 percent compared to other small ships.
“The move underscores the interdependence between Vale and China,” said Yu Liangui, senior analyst from consultancy firm Mysteel. “As a long-term strategy, Vale needs to stabilize its exports by reducing transportation costs to grab more market share in China from its rivals Rio Tinto and BHP Billiton.”
Jiangsu Rongsheng Heavy Industries Group, a shipbuilder based in eastern China, will build 12 of the carriers for Vale by the end of 2010 or the beginning of 2011, local media reported.
Macquarie Group Ltd and JPMorgan Chase &Co have raised their forecast for annual iron ore contract prices after a surge in demand from China.
Australian benchmark iron ore prices may rise 30 percent, Macquarie analysts led by London-based Jim Lennon said yesterday in a report. That compares with their previous estimate for a 10 percent gain, according to media reports.
China increased iron ore imports by 12 percent last month to cater to the rising demand from makers of cars and appliances, it said.
Iron-ore demand from the United States and European steelmakers will also increase next year, the Brazilian company said recently.

Noodle king eyes food companies

Noodle king eyes food companies

 

Wei Ing-chou
Taiwanese billionaire Wei Ing-chou, whose “Master Kong” brand built Tingyi (Cayman Islands) Holding Corp into China’s largest maker of instant noodles, said he may buy mainland food companies and expand his real estate holdings before retiring in four years.
Tingyi may target companies that produce beverages and baked good on the mainland, and its largest shareholder may buy and manage office property in Taipei and Shanghai, Wei said on Monday during an interview at company headquarters in Tianjin.
“In this world there’s no brighter place than the Chinese mainland,” Wei said. “We won’t give this place up. The pursuing of other markets will be for my sons to do.”
Wei plans to leave the company in four years when he turns 60, aiming to ease investor concerns on management succession at the family-controlled firm. His replacement will be one of the company’s current executives, he said without identifying the candidates.
Wei Hong-ming, the chairman’s eldest son, is a manager in the company, while Wei Hong-chen, his third son, is an assistant manager. Wei Ing-chou has three sons.
“It’s good to have leadership planning and would be good for the company and its shares,” said Albert King, who manages $10 million as chief executive officer at Prophet Capital Inc in Taipei. “Still, this is a family business. We have to observe if the chairman still wields influence after stepping down.”
Wei Ing-chou started transforming Tingyi from an oil and grease company founded by his parents in 1958 into China’s biggest maker of packaged foods in the early 1990s, when he says he foresaw growing demand for fast meals as more Chinese moved from the countryside to the cities for factory work. He opened his first noodle factory in Tianjin in 1992.
Sales of “Master Kong” surged 500-fold since production began, helping make Wei Taiwan’s fifth-richest man with an estimated wealth of $3.2 billion, Forbes Magazine reported in July. Tingyi sold 15 billion yuan of instant noodles last year, compared with 30 million yuan ($4.39 million) in 1992.
The company also makes tea, mineral water and juices and sells bakery products.
“He is the king of instant noodles,” said Anita Hwang, an analyst at Mirae Asset Securities Co in Hong Kong.
Ting Hsin International Group, Tingyi’s biggest shareholder with a 36.6 percent stake at the end of 2008, is controlled by Wei Ing-chou and his three younger brothers.

PwC: Overseas M&A deals peaking

PwC: Overseas M&A deals peaking

Chinese companies may increase overseas mergers and acquisitions (M&As) by 40 percent next year while outbound deal value may hit a record high of $30 to $35 billion this year, PricewaterhouseCoopers LLP (PwC) said in a report yesterday.
With the global financial crisis making overseas assets more attractive, the value of Chinese companies’ announced outbound M&A deals might triple this year over 2008, said the report.
The major risk for Chinese companies in fostering overseas M&A deals is the insufficient risk analysis capabilities, particularly in financial and legal aspects, said Wang Xiaogang, a partner at PwC China.
“Integrating the business after an M&A is also a daunting task for Chinese companies,” Wang said.
Despite the impressive growth this year, the value of overseas M&A deals is still only a third of the domestic and inbound transactions values.
According to PwC, domestic M&A activity may increase by 20 percent next year.
Domestic and inbound M&A deal volumes in China (including Hong Kong and Macao) in the second half of 2009 are also returning to robust 2008 levels, indicating that the impact of the global economic downturn on Chinese M&As seems to be short lived.
More than 1,800 domestic transactions are likely to be recorded in the second half of this year, for a total of about 3,200 deals for the full year. That compares with 2,000 deals for the second half of 2008, and 3,797 deals for 2008, according to the report.
The financial services sector has the highest announced deal value in 2009, followed by the real estate sector.
Foreign strategic deal activities, however, continued to decline, with only 400 deals for the whole of this year, representing a 40 percent drop from 2008 levels. Foreign buyers have been sorting out problems in their home markets and this has shifted focus from acquisitions.

BOC pledges credit growth in 2010

BOC pledges credit growth in 2010

Bank of China (BOC), the nation’s third largest lender, will maintain relatively rapid credit growth in 2010, but the amount of new loans to be issued is likely to be lower than that of this year, Xiao Gang, chairman of the bank, said yesterday.
“This is in line with the government call to keep a moderately loose monetary policy next year,” Xiao told China Daily on the sidelines of the 2009 China Environmental Protection Industry Development Summit.
The practice of maintaining a relatively fast lending pace was applicable to the entire Chinese banking industry because it was necessary to retain a relatively sizeable liquidity in the market next year, the chairman said.
Bank lending has been critical to reviving the country’s slowing economy this year. Chinese banks advanced a record-breaking 9.21 trillion yuan in new loans in the first 11 months of this year, with BOC topping other banks by extending nearly 1.1 trillion yuan in fresh loans during the period.
However, the brisk credit growth has also strained the capital positions of many Chinese banks, spurring a number of mid-sized lenders to raise funds through bond issuance and share sales this year in a bid to shore up their increasingly thin capitalization.
In response to the wide market interest in how major State-owned lenders plan to replenish capital, Xiao said the bank’s plan was still under discussion, but noted the lender would look at adjusting its assets structure as an important task next year in order to improve capital efficiency.
“Moderately controlling the lending pace can be another way to shore up finance,” the chairman added.
As of the end of the third quarter this year, BOC’s capital adequacy ratio stood at 11.63 percent, against the latest 11 percent requirement set by the nation’s bank regulator for large State-owned banks.
During the pivotal Central Economic Work Conference that ended last week, the government pledged to stick to the expansive fiscal and eased monetary polices next year, but would put more effort into restructuring the nation’s industrial landscape by promoting environmentally friendly and energy-efficient economic growth to the top of its agenda.
In response to the government call, BOC is regarding the environmental protection industry as a promising sector that it could tap into. At yesterday’s summit, the bank inked a cooperative memorandum with the Ministry of Environmental Protection, the first of its kind between the ministry and a commercial lender, promising to give more financial support to domestic enterprises engaged in the environmental protection industry.
“The environmental protection industry could be the new growth engine for the economy in the future, and the bank will adhere to its green credit policy and offer more diversified financial services to support the development of domestic environmental protection companies,” Xiao said.

Pfizer, Takeda to promote diabetes drug in China

Pfizer, Takeda to promote diabetes drug in China

Pfizer Inc, the world’s largest drugmaker, and Osaka-based Takeda Pharmaceutical Co Ltd said on Tuesday they have signed an agreement to jointly promote and sell Takeda’s diabetes drug in China.
The agreement allows Takeda, Japan’s biggest drugmaker, to increase the number of medical representatives in the sales and marketing of its Actos product, expanding its reach by using the territory coverage of Pfizer in China, the statement said.
Takeda earns about half its revenues overseas.
Actos, Takeda’s best-known drug, is a prescription medication used along with diet and exercise to improve blood sugar control in adults with type 2 diabetes. It has been sold in China since 2004 by Tianjin Takeda Pharmaceuticals, a joint venture between Takeda Pharmaceutical and Chinese partner Tianjin Lisheng Pharmaceutical Co.
Under the Pfizer-Takeda agreement, Pfizer’s Chinese affiliate will receive a fixed ratio of Actos net sales. No further financial details were given in the statement.
China, currently the world’s fifth-largest pharmaceutical market, is expected to grow to be the third-largest market by 2011. It is also is expected to have more than 50 million diabetics by 2025, according to the International Diabetes Federation.
Last month, Pfizer said it planned to expand its research and development operations in central and western China as it strengthens its biomedical infrastructure throughout the country.

Central SOEs expect 750b yuan in annual profits

Central SOEs expect 750b yuan in annual profits

China’s centrally-administered State-owned enterprises (SOEs) are expected to reap 750 billion yuan ($110.29 billion) in profits this year as their business operations improve, the state assets watchdog announced Monday.
In the first 11 months, the 131 SOEs saw a 3.4 percent year-on-year growth in operation revenues to 11.1 trillion yuan and in profits to 710.9 billion yuan, according to figures released by the State Assets Supervision and Administration Commission (SASAC).
Li Rongrong, director of the SASAC, announced the figures at a conference attended by senior executives of the centrally-administered SOEs.
“We overcame great difficulties and maintained stable profit growth this year though the economic crisis dampened external demand,” he said.
Li also stressed that companies should enhance innovative capacity, strengthen core competitiveness and avoid blind expansion in 2010.
The SOEs made profits of 696.2 billion yuan in the corresponding period last year, said the SASAC.

CHC takes over White House Theatre

CHC takes over White House Theatre

 

Photo taken on Dec 13, 2009 shows the White House Theatre in Branson, Missouri. China Heaven Creation officially took over the White House Theatre on Monday. [Xinhua]
China Heaven Creation International Performing Arts Co Ltd (CHC) Monday formally took over the ownership of the White House Theatre in Branson, Missouri, making the first ever successful purchase of an American theatre by a Chinese company.
Cao Xiaoning, CEO of the Chinese performing company, signed the documents on the $354-million deal with representative of the White House Theatre at Hogan Land Title Co in Branson. Mrs Raeanne Presley, the Mayor of Branson, Mr Li Dongwen, Cultural Counsellor of Chinese Ambassy, and some other officials from the City of Branson were present at the signing ceremony.

Ross Summer (5th L front), president of Commerce Chamber of Branson, and Cao Xiaoning (4th L front), general manager of China Heaven Creation, cut the ribbon at the takeover ceremony of the White House Theatre in Branson, Missouri, Dec 14, 2009. [Xinhua]
In an interview with Xinhua after the signing ceremony, Cao said, this is the first time ever for a Chinese entertainment enterprise to purchase a theatre in the United States. The purpose is to bring the Chinese shows into entertainment business in the United States. “With China’s economy growing stronger, the Chinese show business has started its way to step into the international arena,” he added.
He said “in the United States, there are many shows involved Chinese performers, like those talented acrobatic performers, if we name them. But all of these shows are arranged by foreign producers not Chinese. So (CHC) hopes to change the situation. CHC has produced many high quality shows in China, and toured internationally with a big success. Now, the company aims the American residential entertainment market.”

Cao Xiaoning (2nd R Front), general manager of China Heaven Creation, and delegates of the former White House Theatre holders attend the signing ceremony in Branson, Missouri, Dec 14, 2009. [Xinhua]
Based in Beijing, CHC is one of the best cultural companies in China which was announced its establishment ten years ago.
Cao said, after CHC appeared in the arena of show industry in China, the company has produced 9 big-scale shows successfully and has acquired a high fame domestically. One of the shows it has produced is The Legend of Kung Fu. IT has achieved greatly both in the markets of home and abroad. It has toured to the US, Canada, Britain, Russia and Japan and has been cheered by a big audience everywhere.
CHC decides to put this show on for the first round of performance at the White House Theatre in Branson. Following this show, more made-in-China brand entertainment products will arrive in the States successively through this stage.
Commenting on the deal and the prospect of the CHC’s show business in Branson, Anna Koelling, incoming General Manager of White House Theatre said, “It is really a good deal and I believe the CHC will bring in here different type of performances that will be loved by theatre-goers and tourists in Branson.
“As the incoming new General Manager of the White House Theatre, I will make my efforts to run the theatre with my Chinese colleagues,” she said.
Having more than 50 theatres with about 70 shows daily, Branson is one of the major center for entertainment business in the United States and the White House Theatre is one of the major theatres in Branson.