China May Delay Reopening IPO Market
The doors to initial public offerings in China's stock market will likely remain shut through the end of October as regulators failed to finalize a plan for reforming initial stock sale, a person familiar with the matter said. That means the Chinese IPO market would have been frozen for a whole year. Regulators are working on tougher IPO rules but the number of applicants has not fallen. The source said regulators expected to control the number of prospective listings at 500 when the IPO market reopens. There are more than 700 waiting in line.
China Considers Rail Freight Rate Reforms
The National Development and Reform Commission is working on reforming the nation's rail freight rates to make them more market-driven, a person familiar with the matter said. Rail freight rates in China will continue rising through 2014 to help increase China Railway Corp's revenue and therefore shore up its solvency, according to the source. China will gradually lift restrictions on rail freight rates and replace the current government-set prices with "government-suggested" prices that leaves pricing at the discretion of rail transporters. The average rail freight rate was last raised in February, by 13%, or 0.015 yuan, per ton-kilometer.
Loosening Child Policy a Windfall for Dairies
China may relax its second-child policy on a trial basis in late 2013 or early 2014, allowing couples to have a second baby if either is the only child of their parents, News.163.com reported. The ban on a second-child could be completely lifted in 2015. If that happens, the birth rate for a second child in urban areas will rise 20%, creating an 18 billion yuan worth of additional demand for infant formula, UBS estimated in its Morning Expresso Asia report. Domestic dairy makers are expected to take a greater market share as they enjoy obvious channel advantages in tier 2-4 cities.
Clean Energy Industrial Output Reaches 320 Billion Yuan
Output from China's clean energy industry amounted to 320 billion yuan in 2012 after growing over 10% annually during recent years, according to the China International Cleaning Industry Expo. The industry involves energy conservation, environmental protection, alternative energy, new materials and vehicles powered by clean energy.
Wenzhou to House China's First Private Bank
China is working on policies to back the establishment of private financial institutions and to further open up the financial market, a person with knowledge of the issue said. Private capital is being prepared in Wenzhou, Zhejiang to establish the first privately-owned bank in China, according to the source. Wenzhou is best known for its dynamic shadow or underground banking market.
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