Top 500 Private Firms Revenue Tops 10 Trillion Yuan
Revenue of China's 500 largest privately owned companies rose 13.7% to over 10 trillion yuan in 2012; the growth rate was 20 percentage points slower than in 2011, according to a report released by the All China Federation of Industry & Commerce. Suning Commerce Group Co (SHE: 002024), Lenovo Group Ltd (HKG: 0992) and Huawei Technologies Co were top 3 by revenue, with their revenue totaling 233 billion yuan, 227 billion yuan and 220 billion yuan respectively. Suning is China's largest consumer electronics retailer; Lenovo is a leading computer and phone maker; and Huawei is China's biggest telecoms equipment maker. The 500 firms' combined net profit fell 3.4% to 423.84 billion yuan in 2012. China Vanke Co (SHE: 000002), Huawei and Wanda Group were the top 3 by net profit, with their net profit totaling 15.66 billion yuan, 15.38 billion yuan and 11.16 billion yuan respectively. Vanke is China's biggest property developer by contract value and Wanda is a leading commercial real estate developer.
China to Eclipse US as No 1 E-Commerce Market
China's e-commerce gross merchandise value (GMV) is expected to overtake that of the US this year, and its online retail sales are expected to account for half of total retail sales in 10 years, according to a report released by Bain Capital. China's e-commerce GMV has grown 71% annually from 2009 through 2012, well above the US's 13%. China's e-commerce GMV is expected to reach $539 billion by 2015. China's online retail sales totaled $212.4 billion in China in 2012, slightly less than the $228.7 billion in the US.
Restaurants Hit Hard by Anti-Extravagance Campaign
Revenue from China's catering industry is expected to hit the second lowest level this year since 1991, Ministry of Commerce spokesman Yao Jian said, adding that it will only be better than 2003, when the SARS pandemic wrought havoc on the country. Yao attributed the slackness to the crackdown on government-funded lavish dinner. China's restaurant receipts rose 13.6% to 2.34 trillion yuan in 2012; the growth rate was 3.3 percentage points slower than in the year before and slower than overall retail sales growth for the third year in a row.
Date Set for Meeting on Economic Reforms
Chinese leaders will hold a crucial meeting on further economic restructuring in November, according to a recent politburo meeting chaired by president Xi Jinping. Some guidelines on decentralization and tougher penalties on corruption were passed in the meeting. The leaders also discussed about pushing forward the establishment of a pilot free trade zone in Shanghai, which is expected to increase the city's competiveness against rival cities like Hong Kong and Singapore.
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