Jia Xiudong, a distinguished Research Fellow from the China Institute of International Studies, wrote an article for China’s state-run media, People’s Daily. It was a commentary article that sent a message to the U.S. while U.S. Secretary of State Hillary Clinton was visiting China.
Briefings - 841. page
Chinese Wanda Acquires AMC for US$2.6 Billion
Xinhua reported that the Dalian Wanda Group finalized the acquisition of AMC, thereby becoming the world’s largest cinema owner. Wanda chairman Wang Jianlin made the announcement on September 4, 2012, that it had completed the acquisition, valued at US$2.6 billion, thus making it the largest ever purchase of a U.S. firm by a Chinese corporation. AMC is now a wholly owned subsidiary of Wanda and will receive cash injections of no more than US$500 million per year.
[Editors note: Boxun reported earlier this year that Wang Jianlin had allegedly bribed and helped Bo Xilai, the disgraced former senior Chinese Party official, who was Dalian’s mayor from 1993 to 2000, to climb the political ladder in exchange for lucrative deals. In a statement that Wanda issued in response to the reports, the company said that Wang Jianlin had won the "China Charity Award" and that Chinese Communist Party leaders received him in April.]
Sources:
Xinhua, September 5, 2012
http://news.xinhuanet.com/2012-09/05/c_112959096.htm
Boxun.com, May 5, 2012
http://boxun.com/news/gb/china/2012/05/201205051733.shtml
The Era of High Profits Is Ending
On August 30, 2012, China Reviews published an article titled “China’s Enterprises Have Left the Era of High Profits Far Behind.” From January to July 2012, the accumulated profits of state-owned enterprises (excluding state-owned financial enterprises) fell by 13.2 percent compared to the same period last year. Of these state-owned enterprises, the total accumulated profits of the central state-owned enterprises declined 10.7%, while the total accumulated profits of local state-owned enterprises declined 18.3%. The profits made by China’ state-owned enterprises have decreased in each of the past seven consecutive months.
“At present, an average of nearly 28 percent of China’s manufacturing industry’s capacity remains idle; 35.5 percent of manufacturing enterprises’ capacity utilization is at 75% or less.”
Source: China Reviews, August 30, 2012
http://www.zhgpl.com/doc/1022/1/7/0/102217016.html?coluid=53&kindid=0&docid=102217016&mdate=0830043155
China Secutimes: Tishman Speyer, a Leading US Real Estate Firm, Is Fleeing China
On August 31, 2012, China Secutimes published an article titled, “The Largest U.S. Real Estate Firm Is Fleeing China’s Real Estate Market; What Signal It Discloses.” Tishman Speyer, a U.S. real estate developer, is trying to sell its properties in China. The two plots of land that Tishman Speyer currently has for sale are in New Jiangwan in Shanghai. One plot is worth 1.6 billion yuan (US$252 million) and the other one is worth 3.2 billion yuan (US$505 million).
Tishman Speyer started developing real estate in China in 2005. Over the last 7 years, it has expanded its real estate projects in several cities such as Shanghai, Beijing, Tianjin, and Chengdu. However, Tishman Speyer has begun the process of withdrawing from China. According to China Secutimes, “In 2012, foreign capital invested in China’s real estate market will probably decrease by 50 percent,” bringing foreign capital invested in China’s property market to the lowest amount in the last seven years.
Source: China Secutimes, August 31, 2012
http://news.stcn.com/content/2012-08/31/content_6797642.htm
COSCO Suffers Huge Financial Loss: Nearly 4.9 Billion Yuan in First Half of 2012
According to China Ocean Shipping (Group) Company’s semi-annual report, COSCO lost 4.872 billion yuan in net profit (US$767.3 million) in the first half of 2012, a decline of 79.72 percent compared to last year. COSCO’s loss even exceeds China Aluminum’s huge loss of 3.2 billion yuan. Expecting to lose more money this year, Wei Jiafu, COSCO’s Chairman and CEO, has applied for financial support from the relevant departments in China.
Source: http://www.nbd.com.cn/, August 31, 2012
http://www.nbd.com.cn/articles/2012-08-31/678379.html