Date
18 August 2017
File photo of Tencent headquarters at Nanshan Hi-Tech Industrial Park in Shenzhen

The Big Picture: TENCENT IN QIANHAI

Tencent Holdings Ltd. (00700.HK), China’s largest internet company, plans to invest at least 10 billion yuan (US$1.63 billion) to develop e-commerce and internet finance businesses in the Qianhai area in Shenzhen, giving a major boost to the special economic zone. 

Tencent already operates several businesses in the zone with a combined registered capital of 1.6 billion yuan. The company is optimistic about the future development of Qianhai, chief executive Pony Ma was quoted as saying in a report on the firm’s technology website Tuesday. Qianhai is a test bed for China’s financial innovation.

Apart from this, Tencent has recently inked a deal to use a Hong Kong-based data center operated by Nasdaq-listed Equinix Inc. (EQIX.US), aiming to expand overseas.

Tencent will hold a forum in Beijing on Dec. 20 to discuss internet finance, according to a press release from the Shenzhen-based firm. In the media release, the company quoted Chinese President Xi Jinping {習近平} as saying in a speech that “a new round of technology revolution and industry reform is emerging” in the country.  

Observers say Tencent’s high-profile announcement about its potential investment in Qianhai should help the company gain a first-mover advantage in the nation’s internet finance industry. At the same time, it sends an encouraging signal to the officials in Qianhai, which has been lagging behind the Shanghai free trade zone in terms of supportive measures.

Qianhai will continue to develop four industries, namely finance, modern logistics, technology and information services, Zhang Bei {張備}, director of Qianhai Authority, told yicai.com in an interview published Tuesday. 

More than 2,000 companies have so far registered in Qianhai due to different reasons, Zhang said. They believe that a Qianhai branch will help them expand to Southeast Asia markets, innovate new products, enjoy more development and investment opportunities and tax benefits, he said.

Reported cross-border loan credit has already exceeded 10 billion yuan so far this year and will probably hit 50 billion yuan next year and 100 billion yuan in 2015, he said.

Revised securities law expected in 2H 2014

Chinese authorities are expected to enact a revised securities law in the second half of 2014, the China Securities Journal reported Wednesday, citing a source with knowledge of the matter. A new legislation on futures trading is also likely to be passed in a bid to enhance the competitiveness of the domestic futures market, according to the newspaper. The proposed securities legislation will cover share issuance and listing, corporate mergers and restructuring, and investor protection. A registration system for new share sales will be introduced. 

China car output said to have hit new high last month

Car output and sales volume in China hit record highs in November, the China Association of Automobile Manufacturers (CAAM) said in a statement late Tuesday. During the month, a total of 2.13 million vehicles were produced in the country, up 21.17 percent from a year ago, while sales rose 14.12 percent to 2.04 million units, the industry body said. In the eleven months to November, car sales climbed 13.53 percent to 19.86 million units and output surged 14.34 percent to 19.99 million units.

– Contact HKEJ at [email protected]

JP/AC/RC

 

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