Air China Earnings Rise 7% on Foreign Exchange Gains
Air China Ltd (HKG: 0753, SHA: 601111), the smallest of the nation's top three carriers, posted 45.86 billion yuan in revenues and 1.12 billion yuan in net profits for 1H 2013, down 3.6% and up 7.3% respectively from a year earlier. Weak demand for air travel and lower ticket prices were blamed for the decline in revenue, while foreign exchange gains were credited for the profit increase. An appreciating Renminbi generated a 1.12 billion yuan foreign exchange gain in 1H 2013, which was equal to net earnings. It booked a 171 million yuan return from investments.
Daimler to Expand China Capacity
Daimler AG is establishing its largest factory in China as the German carmaker aims to boost sales of its Mercedes-Benz vehicles in the country, International Business Times reported. Hubertus Troska, head of the Daimler China, told Bloomberg that it plans to invest $2.7 billion building the Chinese plant by 2014, when its local production is expected to reach 200,000 units per year. The move is part of Mercedes' plan to boost the sales in China to 300,000 by 2020.
China Railway Corp Issues 20 Billion Yuan of Bonds
China Railway Corp has issued 20 billion yuan worth of bonds to fund railway construction in its third bond offering since late July and fifth this year. The interest rates range from 4.2% to 5.2%. The latest issuance takes the total value of the company's bond offerings to 100 billion yuan this year, including 60 billion yuan for railway construction, 20 billion yuan in medium-term notes and 20 billion yuan in short-term bills. It had been given a quota of 150 billion yuan worth of bond for railway construction in 2013.
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