China’s Mini-Stimulus Shows Results, More Support Measures Likely – Wall Street Journal
China’s May economic data brought some pleasant surprises, with the government’s “mini-stimulus” measures credited with producing a modest turnaround after the sluggish start to the year. Many analysts said the data show signs the economy is stabilizing, but others said there’s trouble ahead and that more support for the economy – on top of the stepped-up tax breaks and railway spending already announced – will be needed. The biggest risk to growth is the sagging property sector. “The worst is not over, we believe,” Standard Chartered economists wrote in a note to clients. “We maintain our call that actual activity growth is likely to slow further in the third… – Read Full Story
China’s Gray-Haired Set Could Boost Digital Shopping – Wall Street Journal
Online shopping in China isn’t just for the young, according to a new survey. That could be good news for an already quickly growing e-commerce industry that largely caters to the young. While the bulk of online shoppers are still in their 20s and 30s, a survey published Tuesday by data provider Nielsen said the number of online consumers aged 55 or older grew 72% between 2012 and 2013. It cited data from Taobao, one of China’s largest shopping websites, which is owned by Alibaba Group, though it didn’t release the underlying figures. “China could become the world’s most aged… – Read Full Story
Japan’s Muji Joins Alibaba’s Tmall – Wall Street Journal
As Alibaba’s Tmall courts international brands and retailers to set up shop on its site, the latest company to join the virtual shopping mall is Muji, the Japanese retailer of simple but design-conscious housewares and clothing. Muji’s Tmall store, which opened this week, comes as Alibaba is stepping up its efforts to attract global brands that can help elevate the overall image of its online shopping mall. Alibaba has been working hard to cultivate the reputation of Tmall as a trusted marketplace for high-quality, authentic branded goods… – Read Full Story
Chow Tai Fook to Buy U.S. Diamond Retailer Hearts on Fire – Wall Street Journal
Chow Tai Fook Jewellery Group Ltd. is buying U.S. diamond company Hearts on Fire Co. for $150 million, as the mass-market Hong Kong jeweler hopes to expand its catalog of high-end gems for Chinese consumers. It is Chow Tai Fook’s biggest acquisition since it went public in Hong Kong almost three years ago. The world’s biggest jeweler, as ranked by its $15 billion market value, has the bulk of its vast retail network in… – Read Full Story
Smaller Hollywood Studios Make Their Move in China – Wall Street Journal
Independent U.S. movie studios have struck new deals with Chinese companies as they try to follow the gains big Hollywood studios have made in the world’s No. 2 movie market. Relatively Media LLC, which produced the film “The Social Network,” said on Monday it struck a deal with China’s Jiangsu Broadcasting Corp., a broadcaster in the eastern Chinese province of Jiangsu, to jointly finance, produce and distribute mainly Chinese-language film and TV content for both Chinese and international markets. The Beverly Hills, Calif., company also signed two other deals this week to distribute Chinese language films licensed by the state-run China Film Promotion International in the international market… – Read Full Story
Hillhouse’s Zhang Says Now One of Best Times to Invest in China – Bloomberg News
Now is one of the best times to invest in China in 10 years as a slowing economy reduces overcapacity and forces companies to focus on generating free cash flow, said Zhang Lei, founder of Yale University-backed Hillhouse Capital Management Ltd. “China is in a structurally slowing-down phase,” Zhang said at a Financial Times conference in Hong Kong today. “That overcapacity, that lack of free cash flow, is a really bad recipe for equity investors. When growth slows down, you have high-quality companies… – Read Full Story
Shanghai to Start International Gold Trading in 4Q – Bloomberg News
China, the world’s biggest gold user, will start international gold trading in Shanghai’s free-trade zone in the final quarter of this year, according to a city government official. “We will aim to commence trading in the fourth quarter,” Zheng Yang, head of Shanghai’s financial services office, said today in a conference in the city. The nation’s central bank earlier this week approved the trading platform to be included in the zone’s banking system. China, also the world’s largest bullion producer, is seeking to step up its presence in the global gold market at a time when the industry is discussing changes to the century-old fixing benchmark in London used to trade and value the metal. The country overtook… – Read Full Story