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Govt and policies

Express delivery spending up in 2016

Chinese customers spent more on express delivery services last year, while average delivery costs continued to decline, according to an industry report. Average spending in China on express delivery stood at 287 yuan ($42) last year, up 42.7 percent year-on-year, according to the State Post Bureau. Meanwhile, average costs dropped from 13.4 yuan per item to 12.7 yuan and consumers were increasingly satisfied with the services. A total of 31.3 billion parcels were delivered last year, up 51.4 percent year-on-year. The sector generated 397 billion yuan in revenue last year, up 43.5 percent, the bureau said. The target annual revenue of the courier sector will be 800 billion yuan in 2020, according to a policy document released by the State Council last October.

China to extend SE Asia cargo link

A regular road cargo service between Chongqing in southwestern China and Bangkok will start operations in July, local authorities said. Chongqing has planned three routes to member states of the Association of Southeast Asian Nations, according to the city's municipal transportation authorities. The eastern route from Chongqing to Hanoi in Vietnam is already in operation. In July, the central route will connect Chongqing, through Vientiane in Laos and on to Bangkok. The 96-hour journey covers 2,800 kilometers. The third, western route, from Chongqing to Yangon in Myanmar, will open at the end of this year or the beginning of 2018, said He Zonghai, director of Chongqing transportation group.

Report highlights competitiveness

Shenzhen, Hong Kong and Shanghai rank in the top three and Beijing comes seventh in terms of comprehensive economic competitiveness, according to a report from the Chinese Academy of Social Sciences. The index covers 294 cities, mostly in the Pearl River Delta, the Yangtze River Delta and the Bohai Rim. Apart from comprehensive economic competitiveness, Hong Kong ranks first both in the livable and sustainable competitiveness indexes, which involved data collected from 289 cities across the country.

Companies and markets

Beijing Hyundai to recall 43,764 cars

Beijing Hyundai Motor will recall 43,764 vehicles over a defect that may lead to potential engine failure, according to China's top quality watchdog. The affected vehicles are Santa Fe models with 2.4-liter Theta GDI engines produced between Nov 29, 2012 and May 31, 2013 as well as those with 2.0-liter Theta GDI engines manufactured between Nov 29, 2012 and Nov 30, 2013, the General Administration of Quality Supervision, Inspection and Quarantine said on its website. The recall aims to address a manufacturing flaw that leaves debris in some engines, potentially restricting oil flow and causing engine failure. The company will replace the faulty engine parts for free. The recall will start on July 31.

Foxconn to invest $3.65b in Kunshan

Taiwan province's tech giant Foxconn has signed a strategic cooperation agreement to invest 25 billion yuan ($3.65 billion) in new industries in Kunshan, Jiangsu province. According to it, Foxconn will invest more than 8 billion yuan in the initial phase. The spate of investment projects ranges from new energy battery R&D center and production base to Internet of Things and pollution prevention and treatment.

Geely acquires stake in Proton

Zhejiang Geely Holding Group has signed an agreement to acquire a 49.9 percent stake in Malaysian carmaker Proton, 30 days after an initial deal was reached between Geely and DRB-Hicom, the Malaysian conglomerate owning 100 percent of Proton. The deal was valued at 460.3 million ringgit ($108 million), including a cash injection of 170.3 million ringgit into Proton by Geely, and a sport utility vehicle platform that is worth 290 million ringgit, DRB-Hicom Managing Director Syed Faisal Albar told a news conference following the signing ceremony. Syed Faisal said the immediate focus was to reclaim Proton's position as Malaysia's best-selling car.

Around the world

Eurozone's Q2 at six-year high

A further solid rise in business activity in June rounded off the strongest quarter of economic expansion across the 19-country eurozone for over six years, a survey showed. The Composite Purchasing Managers' Index of the eurozone fell from a six-year high of 56.8 in May to a five-month low of 55.7 in June, according to data of monitoring company Markit. However, the average PMI reading for the second quarter of 56.4 was above the 55.6 reading seen in the first three months of the year and was the highest since the first quarter of 2011. "Despite the June dip, the average expansion in the second quarter has been the strongest for over six years and is historically consistent with gross domestic product growth accelerating from 0.6 percent in the first quarter to 0.7 percent," said Chris Williamson, chief business economist at Markit.

Singapore sees 1.4% May inflation

Singapore's Consumer Price Index rose 1.4 percent in May, up from 0.4 percent in April, according to the Ministry of Trade and Industry and the Monetary Authority of Singapore. The inflation growth is attributed to the rise in the cost of housing maintenance and repairs on a year-ago basis. This caused the cost of accommodation to decline by 1.5 percent compared with the 6.7 percent fall in April. Singapore saw the cost of electricity and gas rise 19.1 percent in May, compared to the 18.7 percent increase in the preceding month, due to an increase in gas tariffs on the back of the recovery in global oil prices over the past several months.

Cambodia set for 7% growth

Cambodia's economic growth is expected at 7 percent in 2017, driven by garment exports, construction, tourism and agriculture, an official at the National Bank of Cambodia said. With the expected growth, the country's gross domestic product will reach $ 22 billion, as GDP per capita is forecast to reach $1,434 this year, said Duong Sophak, deputy chief of the bank's economic research and international cooperation division. He added that industry, mainly garments and construction, and the service sector - tourism, transport and telecoms, trade and real estate - will contribute significantly to the growth.

Myanmar and WB extend partnership

Myanmar and the World Bank Group have renewed an agreement on their Country Partnership Framework, extending it to two more years to help the country end extreme poverty and promote inclusive growth especially in rural areas, official media reported on Sunday. Over the next two years, up to $1.2 billion financed by the International Development Association, a subsidiary of the World Bank Group, will be earmarked for Myanmar with technical assistance and advisory services, the World Bank Group said. The agreement, which began in 2015, has benefited around 5.4 million people in Myanmar with improved education facilities, roads and other infrastructure. Stipends under the agreement have helped 150,000 more students to attend school.

China Daily - Agencies