China Economy Forum

[TaiShang]

Alibaba's Ant Financial to buy 25% of India's One97
February 6, 2015

Ant Financial Services Group, an affiliate of China's Alibaba Group Holding Ltd, has agreed to buy 25 percent of Indian payment services provider One97 Communications, tapping into the country's smartphone and online industry boom.

The companies did not provide the value of the deal, but a person with knowledge of the matter called the investment a precursor to One97 listing on the stock exchange, and said the stake was worth more than $500 million.

The deal values One97 at more than $2 billion, making it one of the most-valuable start ups in the country. One97 runs Paytm, an online platform through which users can shop or pay utility bills, whereas Ant runs Paytm's Chinese peer Alipay.

Alibaba spokeswoman Teresa Li and One97 founder Vijay Shekhar Sharma declined to disclose the value. Sharma told Reuters that Ant would buy new shares in his company.

Paytm has benefited from the spread of affordable handsets and internet connectivity which has turned India into the fastest-growing smartphone market in the Asia-Pacific region, according to researcher IDC.

"This partnership between Ant Financial Services Group and Paytm will foster the growth of India's digital payment ecosystem," the companies said in a joint statement on Thursday.

Ant, investing in an Indian company for the first time, will provide Paytm "with strategic and technical support for its business", the companies said.

Last month, people close to the deal told Reuters a 30 percent to 40 percent stake would be worth $550 million. One97 plans to use the proceeds to grow its mobile payment business and increase the scale of its services, they said.

"With over one billion people, India's payments market has vast untapped potential," Ant Vice President Cyril Han said in the statement.

Paytm has about 23 million users, the companies said. The $2 billion valuation of operator One97 compares with the $11 billion of Flipkart Online Services Pvt Ltd, India's biggest e-commerce company.

Citigroup and Goldman Sachs advised One97 on the deal.

 

[JSCh]

Record spending spurs race by governments for Chinese tourist dollars
By Patturaja Murugaboopathy and Ryan Woo
Fri Feb 6, 2015 1:55am EST

Feb 6 (Reuters) - Embassies are re-writing visa rules and governments are hammering out aviation pacts as record spending by Chinese travelers sets off a race around the world for a share of the Chinese tourist dollar.

Chinese spending on international travel in 2014 rose to $165 billion from $129 billion in 2013, the biggest percentage increase in two years, according to data released by the State Administration of Foreign Exchange last week.

Chinese disposable incomes have been steadily rising and would-be travelers got an additional boost in the past year from favorable foreign exchange rates, with the yuan appreciating more than 10 percent against the yen and the Australian dollar. The gains versus the euro have been even greater, at more than 14 percent, and the yuan set a record against the single currency last month.

Governments near and far are keen to get their countries onto Chinese itineraries. In November, the United States signed a landmark deal with China extending one-year visas issued to Chinese travelers to up to a decade. This year Malaysia and Indonesia are planning visa exemptions, while Thailand is considering exempting visa fees, which were briefly suspended last year. Australia in January signed an agreement with China allowing more passenger flights from Beijing, Shanghai and Guangzhou with immediate effect.

More->Record spending spurs race by governments for Chinese tourist dollars| Reuters

 

[JSCh]

Nuclear power companies to merge in a bid to boost global clout, export reactors
Source:Reuters-Global Times Published: 2015-2-4 23:38:01

China Power Investment Corp is merging with the State Nuclear Power Technology Corp, as China drives consolidation in its expanding nuclear power sector with the aim of eventually exporting reactors.

The Chinese power producer currently controls about one-tenth of China's nuclear power market, while the State Nuclear Power Technology Corp was formed in 2007 to handle nuclear technology transferred from US-based Westinghouse Electric Co.

A merger between the two would create a firm with total assets of more than 600 billion yuan ($96 billion), industry experts estimate.

Consolidation of the nuclear sector is seen as the key to Chinese companies acquiring the scale to compete abroad.

"The merger will help them expand in China, and the overseas market in the long run," said Francois Morin, Beijing-based China director of World Nuclear Association.

Shanghai Electric Power Corp Ltd, the parent of China Power Investment, said in a filing to the Shanghai exchange on Wednesday that it had received notice from the country's State-owned Assets Supervision and Administration Commission on the merger.

The State Council, China's cabinet, said in January that it would aid the overseas expansion of Chinese firms, in particular in the rail and nuclear power sectors.

China, which now primarily provides financing and construction services to nuclear power projects overseas, is expected by some experts to start exporting reactors after 2020 and become a major exporter by 2030 when it has fully digested foreign technology and developed its domestic industry.

With 22 reactors in operation, and a further 26 under construction, China is the world's largest nuclear power market.

The global nuclear market is currently dominated by firms such as France's Areva, Russia's Rosatom State Nuclear Energy Corp and Japan's Toshiba Corp, which controls Westinghouse.

 

[ahojunk]

Regardless of what people say, just remember - "Money really talks".

That's the reason for the mad scramble for the Chinese tourist dollar.

Just hope that China maintains a list of ugly misbehaving travellers. Ban them from travelling overseas and further tarnishing China's reputation.
.

 

[JSCh]

我国在南海深水自营气田探明储量超千亿立方米

我国首个自营深水气田储量超千亿

气田位置示意图

央视网消息(新闻联播)：中国海油今天宣布，我国首个深水自营气田--陵水17-2气田天然气探明储量规模超过千亿立方米，为大型气田。与此同时，在南海开发油气田所面临的高温、高压和深水这三大世界级难题也被攻克。

位于南海西北部的莺琼盆地是典型的高温高压盆地，盆地3000米中深层，天然气资源丰富，之前中国没有在海上成功开发高温高压天然气的经验。

为攻克高温高压气田的开发难题，科研人员创新了高温高压天然气成藏理论，在高温高压地层压力预监测，钻前预测和钻后评价等核心技术上获得了突破。

特别声明：本文转载仅仅是出于传播信息的需要，并不意味着代表本网站观点或证实其内容的真实性；如其他媒体、网站或个人从本网站转载使用，须保留本网站注明的“来源”，并自负版权等法律责任；作者如果不希望被转载或者联系转载稿费等事宜，请与我们接洽。
*****
China's largest producer of offshore oil and gas, the China National Offshore Oil Corporation (CNOCC), announced on Friday that the country's first ultra-deepwarter gas field has a proven reserve of more than 100 billion cubic meters.

The Lingshui 17-2 gas well lies some 150 kilometers south of Hainan Island in the east Lingshui Sag of the Qiongdongnan Basin. It is an ultra-deepwater gas field at an average operational water depth of 1,500 meters.

"We've discovered proven reserves of over 100 billion cubic meters with an annual output capacity of 3.5 billion to four billion cubic meters. A couple of days ago, we published a test result which showed high capability. So I think the capability of 3.5 to four billion cubic meters is relatively conservative," said Xie Yuhong, a manager with CNOCC.

As part of China's gas fields network in the South China Sea, CNOOC has also recently drilled the country's first high temperature and pressure gas well at sea, the Dongfang 1-1, marking a historic leap on developing a gas well of such kind.

"The temperature at the median deep of Dongfang 1-1 gas well has reached 180 to 190 degrees Celsius, and its pressure is over 12,000 to 13,000 psi," said Li Zhong, a deputy chief engineer with CNOOC.

The Dongfang 1-1 gas well is located in the Yinqiong Basin in the northwest of the South China Sea and at a mid-depth of 3,000 meters under the basin. The gas well contains rich natural gas.

With the successful drilling of a gas well in the South China Sea where many high temperature and pressure gas fields are lying underneath the sea, more gas wells will be developed in the future.

 

[**HashamKhan**]

This will be the new sticky for the updates on Chinese economy.

Please only use this thread for all contents regarding Chinese Economy.

Start this thread again

 

[Bussard Ramjet]

我国在南海深水自营气田探明储量超千亿立方米

我国首个自营深水气田储量超千亿

气田位置示意图

央视网消息(新闻联播)：中国海油今天宣布，我国首个深水自营气田--陵水17-2气田天然气探明储量规模超过千亿立方米，为大型气田。与此同时，在南海开发油气田所面临的高温、高压和深水这三大世界级难题也被攻克。

位于南海西北部的莺琼盆地是典型的高温高压盆地，盆地3000米中深层，天然气资源丰富，之前中国没有在海上成功开发高温高压天然气的经验。

为攻克高温高压气田的开发难题，科研人员创新了高温高压天然气成藏理论，在高温高压地层压力预监测，钻前预测和钻后评价等核心技术上获得了突破。

特别声明：本文转载仅仅是出于传播信息的需要，并不意味着代表本网站观点或证实其内容的真实性；如其他媒体、网站或个人从本网站转载使用，须保留本网站注明的“来源”，并自负版权等法律责任；作者如果不希望被转载或者联系转载稿费等事宜，请与我们接洽。
*****
China's largest producer of offshore oil and gas, the China National Offshore Oil Corporation (CNOCC), announced on Friday that the country's first ultra-deepwarter gas field has a proven reserve of more than 100 billion cubic meters.

The Lingshui 17-2 gas well lies some 150 kilometers south of Hainan Island in the east Lingshui Sag of the Qiongdongnan Basin. It is an ultra-deepwater gas field at an average operational water depth of 1,500 meters.

"We've discovered proven reserves of over 100 billion cubic meters with an annual output capacity of 3.5 billion to four billion cubic meters. A couple of days ago, we published a test result which showed high capability. So I think the capability of 3.5 to four billion cubic meters is relatively conservative," said Xie Yuhong, a manager with CNOCC.

As part of China's gas fields network in the South China Sea, CNOOC has also recently drilled the country's first high temperature and pressure gas well at sea, the Dongfang 1-1, marking a historic leap on developing a gas well of such kind.

"The temperature at the median deep of Dongfang 1-1 gas well has reached 180 to 190 degrees Celsius, and its pressure is over 12,000 to 13,000 psi," said Li Zhong, a deputy chief engineer with CNOOC.

The Dongfang 1-1 gas well is located in the Yinqiong Basin in the northwest of the South China Sea and at a mid-depth of 3,000 meters under the basin. The gas well contains rich natural gas.

With the successful drilling of a gas well in the South China Sea where many high temperature and pressure gas fields are lying underneath the sea, more gas wells will be developed in the future.

Actually it is not a large finding. China consumes more than 100 bcm of gas in a year, and has a total proven reserve of 3 trillion bcm. This new finding will add less than 3% to it. In comparison Russia has close to 50 tcm of proven reserves, with vast tracts of Siberia and Arctic left unexplored. Even Iran has 35 tcm of Gas.

bcm = billion cubic meters
tcm = trillion cubic meters

 

[Martian2]

Actually it is not a large finding. China consumes more than 100 bcm of gas in a year, and has a total proven reserve of 3 trillion bcm. This new finding will add less than 3% to it. In comparison Russia has close to 50 tcm of proven reserves, with vast tracts of Siberia and Arctic left unexplored. Even Iran has 35 tcm of Gas.

bcm = billion cubic meters
tcm = trillion cubic meters

The South China Sea is 3,000,000 square kilometers. It is the same size as India.

The gas discovery of 100 bcm is important, because it seems to indicate the South China Sea is full of natural gas.

 

[Bussard Ramjet]

The South China Sea is 3,000,000 square kilometers. It is the same size as India.

The gas discovery of 100 bcm is important, because it seems to indicate the South China Sea is full of natural gas.

But given the diplomatic impasse, it is years before you can start exploiting that.

 

[Martian2]

But given the diplomatic impasse, it is years before you can start exploiting that.

Come on. The two challengers to China's South China Sea claim are the Philippines and Vietnam. They can hardly put a wooden boat out there.

China will drill wherever and whenever it wants. To assert otherwise is to engage in wishful thinking.

Chinese billion-dollar oil platforms are accompanied by Chinese destroyers (and probably submarines) in the background and fighter aircraft flying patrols overhead. If Vietnam does something foolish, you can expect a massive retaliation by land. The Philippines only have a few donated coastal craft.

There is no serious military challenge to Chinese sovereignty over the South China Sea.

China is busy building five (or six) islands in the South China Sea. These garrisons will only enhance Chinese control of the South China Sea waters and airspace.

 

[JSCh]

Actually it is not a large finding. China consumes more than 100 bcm of gas in a year, and has a total proven reserve of 3 trillion bcm. This new finding will add less than 3% to it. In comparison Russia has close to 50 tcm of proven reserves, with vast tracts of Siberia and Arctic left unexplored. Even Iran has 35 tcm of Gas.

bcm = billion cubic meters
tcm = trillion cubic meters

LIngshui 17-2 is a single 100 bcm well, and it is significant.
In comparison, the Russian China 400 billion dollar gas deal is 30 bcm per year for 30 years.

Another find in the same area just a month ago,

Another Mid-to-large Sized Natural Gas Discovery Made on Independent Deepwater Exploration
(Hong Kong, January 6, 2015) - CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) today announced that the Company has successfully made a new mid-to-large sized natural gas discovery Lingshui 25-1 on the independent deepwater exploration.

The Lingshui 25-1 structure is located in the northeast of Ledong Sag in Qiongdongnan Basin of South China Sea, with an average water depth of about 980 meters. The discovery well Lingshui 25-1-1 was drilled and completed at a depth of about 4,000 meters and encountered the oil and gas pay zone with a total thickness of about 73 meters. The well was tested to produce about 35.6 million cubic feet of natural gas and 395 barrels of oil per day.

Lingshui 25-1 is another mid-to-large sized natural gas discovery following Lingshui 17-2 that the Company made on independent deepwater exploration. The new discovery has not only opened up a new exploration chapter in deepwater area of northern South China Sea, but also further proven the good exploration prospects in deepwater area of Qiongdongnan Basin.​

 

[TaiShang]

China and Asia said to lead ETFs
Shanghai Daily, February 10, 2015

China and Asia are expected to lead the growth of exchange-traded fund markets in the next five years as the ETF markets continue to open amid an improving regulatory environment, a report said yesterday.

Twenty-five new ETFs were launched on the Shanghai and Shenzhen stock exchanges last year, bringing the total number to 107, PricewaterhouseCoopers said in the report.

Assets under management were 253 billion yuan (US$41 billion) by the end of 2014, up 58 percent from a year earlier, the report said.

"A low fee structure and good liquidity attracted more investors and drove the growth of China's ETF market in 2014," said Alex Wong, PwC China Assets Management Leader. "Looking ahead, more domestic and overseas passive investors will use ETF for asset allocation."

Globally, total assets managed by ETFs are likely to at least double to US$5 trillion or more by 2020, PwC predicted.

Asset flows in the US and Europe will continue to dominate the ETF landscape, but the highest rates of growth will be found in less mature markets, particularly Asia, which currently only account for 7 percent of the global ETF assets, PwC said.

China last month allowed same-day trading of cross-border ETFs and listed open-ended funds. China also started a trial trading of equity options yesterday.

 

[JSCh]

Construction of Russian-Chinese Yerkovetskaya power plant may begin in late 2015-early 2016 - Interfax
February 09, 2015 14:58

SELIGER, Tver region. Feb 9 (Interfax) - Inter RAO UES (MOEX: IRAO) and State Grid Corporation of China (SGCC) may begin building the 8,000-megawatt Yerkovetskaya State District Power Plant (Yerkovetskaya GRES) in late 2015 or early 2016, Energy Minister Alexander Novak told journalists.

"If the feasibility study's parameters are acceptable, construction could begin at the end of this year or the beginning of next," Novak said.

The Energy Ministry is "taking a closer look" at the issue of tax breaks that have been approved in the Far East for new power plant construction projects. Agreement has also been reached on streamlined certification of Chinese equipment.

Russia expects to receive tax breaks on electricity exports from the new plant to China.

"We are discussing with the Chinese side the issue of zeroing the VAT rate on electricity deliveries to China," Novak said.

The pre-feasibility study for the Yerkovetskaya GRES project has been completed and the full feasibility study is scheduled for completion by the fall of 2015, by September, he said.

The project will involve construction of the power plant, development of the coal deposit and construction of an ultra-high voltage transmission line.

The project will cost an estimated $17 billion.

"This is a very large number of new jobs, tax revenue. It will be possible to substantially alter the economic situation in the Far East and Amur region once the first stage is completed by the end of 2019," he said.

Earlier, on February 6, SGCC chief Shu Yinbiao estimated the overall cost of the project at $15 billion.

"We are discussing a project in the Far East: the Yerkovetskoye coal deposit. The mine has capacity for 35 million tonnes a year. On board we will build 8 gigawatts of generating capacity," Shu said. In addition 2,000 kilometers of 800-kV grid infrastructure will be built.

Those figures are only preliminary, he said. The feasibility study for the project will be completed by the end of 2015. Formation of a joint venture that will design, build and operate the project is planned, he said. Other investors might join the venture, Shu said, adding that he could not rule out the possibility of Chinese Shenhua joining the coal project.

Early in 2014, Inter RAO announced plans to build a power plant at the Yerkovetskoye coal field with capacity to generate 5-8 GW, for export to China. Inter RAO planned to bring Chinese partners into the project and held talks with Huaneng, the CEO of the Russian company, Boris Kovalchuk, told Interfax.

 

[TaiShang]

China's 2014 tourism revenue hits 3.38 tln

BEIJING, Feb. 10 (Xinhua) -- China's tourism revenue in 2014 grew 14.7 percent to reach 3.38 trillion yuan (551 billion U.S. dollars), a tourism official said on Tuesday.

There were 3.6 billion domestic trips made, up 10.7 percent, according to Du Jiang, deputy director of the National Tourism Administration.

For the first time, last year more than 100 million Chinese tourists went abroad, up 19.5 percent.

Revenues from inbound tourism hit 56.9 billion U.S. dollars, up 10.2 percent.

Du attributed the tourism growth to factors such as the global economic recovery, improved international airline capacity and favorable tourism policies.

 

[bobsm]

China willing to share UHV experience with other countries: official
2015-02-11 15:19
XinhuaWeb Editor: Qin Dexing

China is willing to share its experience in developing a long-distance power transmission technology known as ultra-high voltage (UHV) grid with other countries, a Chinese official said Tuesday.

China has "comprehensively mastered the core technologies of UHV transmission with independent intellectual property rights," said Liang Xu Ming, director of executive director office of the State Grid Corporation of China (SGCC),

"We would like to share the UHV innovations with all countries ...(to) make contributions to the sustainable development of human society," liang said at the launching ceremony of the English version of a book titled "Ultra-High Voltage AC/DC Grid".

Liang said his company has overcome technical difficulties such as voltage control, external insulation configuration and electromagnetic environment since it decided to build UHV grip in 2004.

UHV, defined as voltage of 1,000 kilovolts or above in alternating current (AC) and 800 kilovolts or above in direct current (DC), is designed to deliver large quantities of power over long distances with less power loss than the most commonly used 500-kilovolt line.

By the end of 2014, the SGCC has built three AC and four DC projects, Liang said, adding that the transmission lines in operation and under construction have reached 15,000 kilometers in length with the transmission or conversion capacity of 150 gigavolt-amperes and have delivered over 280 terawatthours of electricity.

He also revealed that a consortium embracing the SGCC and the Brazilian Electric Power Company won a bid last year to build a 2,000 km-long UHV line transmitting hydropower from the Belo Monte Dam, the world's third largest hydroelectric dam scheduled for completion in 2015, to Brazil's developed regions in the south and southeast.

This is the SGCC's first overseas UHV transmission project and "a further step forward towards a greater impact and application of our UHV technology in the world," the SGCC official said.

Liang also believed the English version of UHV AC/DCower Grid could further promote bilateral cooperation between China and the United States in the energy and electric power sector.

"If the United States wants to build a smarter and stronger power grid that can realize electric transmission between its east and west coasts, only UHV technology can do it," he said.

Patrick Ryan, executive director of the Institute of Electrical and Electronics Engineers (IEEE) Power and Energy Society, hailed China as a leader in the world in the creation and deployment of UHV power transmission.

"UHV AC and DC demonstration projects (in China) have been in safe and stable operation for more than six years and four and a half years respectively," Ryan said in a written statement read at the ceremony.

The new "book gives us all an excellent opportunity to observe, learn and share the vast experiences," said Ryan.

Robert Gee, former assistant secretary of the U.S. Department of Energy, representatives from the book's publisher Elsevier, and industrial representatives were present at the launching ceremony of the book compiled by SGCC President Liu Zhenya.

Between the 1960s and 1990s, Russia, Japan, the U.S. and Italy had carried out tests and studies of UHV transmission technology, but due to political factors like the disintegration of the Soviet Union and reduced demand, their UHV plans and projects all came to a premature end.

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