Caixin Global has a series of charts taking a deeper look at how intertwined Hong Kong’s economy is with the mainland. They are well worth a look. Highlights:
Hong Kong may be a worrisome mess, but foreign investment continues to like what it sees in the rest of the Greater Bay Area. In Guangdong, 7,820 new foreign direct investment enterprises were established in the first half of the year, worth RMB83.77 billion, up 5.9% YoY.
One of the highlights came from Fortune 500 company General Electric (GE), which has set up the Asian Biotechnology Park in Guangzhou. It now plans to build a world-class offshore wind turbine assembly base in Jieyang as well as an operation and development center in Guangzhou.
The provincial government has made efforts recently to improving the business environment by introducing an “express lane” for multinational companies to receive approval on projects. As a result, Siemens has signed a comprehensive cooperation agreement with Guangdong, while another 17 major projects have settled here.
It is little wonder Huawei chose Dongguan as the site of its biggest-ever developer conference, which is currently taking place at its new R&D-focused campus that looks like a mini-Europe. The city has released data showing that investment in “technological upgrading” shot up nearly 50% in the first half of the year.Continue reading Dongguan tech investment surges in 1H
In the wake of the Qianhai Cooperative Forum 2019, which was held at the weekend, the city has released statistics showing how fast the special economic zone is ramping up investments and output.
Official data shows utilized foreign direct investment in Qianhai jumped 12.1% to $2.533 billion in the first six months. Hong Kong companies were the most aggressive, and now account for nearly 90% of the zone’s total utilized FDI of US22 billion. Their utilized FDI was 60% of Shenzhen’s and 20% of the entire province’s during the first half.
Despite Hong Kong’s increasingly violent political protests and rising tensions between protesters and the government, InvestHK remains “cautiously optimistic about the investment outlook in Hong Kong,” according to David Wong, head of strategic research.
“If we look at the economic fundamentals of Hong Kong and China, they remain strong,” said Wong in an interview with Greater Bay Insight. He added that the government body, which is tasked to attract and facilitate inward investment, continues to receive keen interest around the world and the pipeline remains healthy.Continue reading InvestHK remains upbeat
The chief executive of Huawei’s Italian unit, Thomas Miao, said at an event in Milan on Monday that Huawei would invest US$3.1 billion and add 1,000 jobs in Italy over the next three years, reports Reuters.
Miao also confirmed that the Chinese company would cut 1,000 jobs in the US. He said if the company is kept on a blacklist in August by Washington, it has “a plan B” to guarantee supplies of components.Continue reading Huawei to put $3.1b into Italy
Amcham South China predicted in a recent member survey that, despite the US-China trade war, its members were prepared to keep investing in the country. The same went for Britcham. Official data suggests they – and other foreign investors – kept their word. In the first half of 2019, Guangdong approved nearly 8,000 foreign direct investment projects, worth RMB83.77 billion, up 5.9% year-on year.
Big projects are the driver. The province has seen a 28.2% increase in projects worth more than US$100 million, totaling US$7.61 billion among 26 projects. Companies like General Electric, Exxon Mobil and BASF launched large industrial projects in second-tier cities like Jieyang, Huizhou, and Zhanjiang.
Around 40% of the total FDI went to the province’s free trade zones, which attracted RMB33.48 billion. The most favored sector is the high-tech industry, which utilized RMB13.83 billion of FDI, up 82%, in the first half. Investment from developed countries amounted to RMB11.08 billion, up more than 60%, among which France (+43 times), South Korea (+4.5 times) and Italy (+3.3 times) were the biggest.
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More than a dozen local companies in Huizhou are recruiting laid-off employees from Samsung’s last cellphone plant in China. Biel Crystal Manufactory, a Huizhou-based cellphone glass maker; electric car maker BYD; TCL Tonly Huizhou, a manufacturer of audio and video products; and 11 other companies have been holding recruiting sessions for the last couple of days at Samsung’s plant in Huizhou, reportsCaixin Global.
The world’s largest smartphone producer, facing rising costs and stiffer competition in China, announced voluntary layoffs in early June. Samsung opened the Huizhou plant in 1992. The factory made about 17% of the company’s global smartphone production in 2017. Before the layoffs, the plant had about 4,000 workers.
The shipping unit of Shenzhen-based conglomerate China Merchants Group is in talks with China International Marine Containers Group (CIMC) and AVIC International Holding Corp on a strategic merger, according to an exclusive report by Caixin Global.
China Merchants Industry Holdings Co. plans to take over CIMC and AVIC INTL’s shipbuilding and marine engineering businesses after the merger, reports Caixin Global. If the three-way consolidation takes place, CIMC and AVIC INTL could reduce operational costs and even withdraw from the capital-intensive shipbuilding industry to focus on their core business.
The possible merger followed the announcement last week by China’s two largest builders, China State Shipbuilding Corp and China Shipbuilding Industry Corp to form the world’s largest shipbuilder as China’s shipbuilding industry ushers in a wave of consolidation.
Macau has invested RMB8 billion into the new Guangdong-Macau Cooperation and Development Fund to support the development of eight projects, five of which are construction of infrastructure in the Greater Bay Area, including motorways, transportation hubs, and science parks.
According to the chairman of Macau’s legislative committee overseeing the investment, Mak Soi Kun, the government plans to invest RMB20 billion this year.
Macau will receive a 3.5% guaranteed financial return each year, with a bonus mechanism: If the financial return exceeds 7.8%, then Macau and Guangdong will share the additional profit 55:45. According to last year’s report, the fund achieved last year a consolidated income of RMB69.38 million, and the pre-tax profits for Macau stood at RMB45.45 million. The fund is expected to rake in more revenue this year with the profits from January till May this year amounting to RMB51.35 million already.
The Guangdong-Macau Cooperation and Development Fund was established in June last year, and the Macau government is expected to receive the first disbursement in 6 years and the second in 11 years.
Read more in Chinese.