China Market Pulse: Current Account, 3G Users, PetroChina, Air China, Software Revenue

China's current account surplus more than doubled to $102.3 billion in Q3 compared to a year earlier, according to the State Administration of Foreign Exchange.

The number of 3G service users in China reached 38.64 million by the end of October 2010, up 10.4% from September 2010 and up 295.7% from October 2009, according to the Ministry of Industry and Information Technology. Cellphone users have totaled 842 million.

Xinjiang Goldwind Science & Technology Co (SHE: 002202), a manufacturer and distributor of wind turbine generators, said it will spend a total ¥200 million ($1 = ¥6.6) to take over Xiexin Jiangsu Silicon Co and Inner Mongolia Xiexin Xilin, which manufactures wind power equipment with more than 1.5MW in capacity. It will purchase the firms from GCL-Poly Energy Holdings Ltd (HKG: 3800) and Shanghai Guoneng Investment Co.

PetroChina Co (NYSE: PTR, SHA: 601857, HKG: 0857), Asia's biggest company by market value, has signed a framework deal with the Hubei provincial government for cooperation in sales network, natural gas supply and construction of gas storages. PetroChina currently meets 90% of Hubei's natural gas demand and 30% of refined oil demand.

Air China Ltd (SHA: 601111, HKG: 0753), said it will have a private placement aimed at raising ¥5.6 billion to reduce its liabilities/assets ratio and improve cash flow and risk control.

Revenues of China's software industry rose 29.9% to ¥1.1 trillion in the 10  months through October, according to the Ministry of Industry and Information Technology. $18.5 billion worth of software products and services were exported over the period, up 24.6% from a year earlier. The rate was 17.5 percentage points slower due to decreased international demand and the Chinese currency's appreciation.

Dangdang.com, China's largest B2C book retailer, has filed for a NASDAQ listing estimated to raise $935 million on December 8. Growth of Dangdang's book sales slowed to 60% last year, but its non-book goods registered 230% in growth, taking total revenue to ¥2.4 billion. The website was founded in 1999 and currently represents 50% of the nation's online book market and 10% to 15% of the entire book market. It is shifting its focus to cosmetics, nursing and home improvement products.

Jiangsu Hengtong Photoelectric Co (SHA: 600487), an optical cable manufacturer, expects to export 30% of its products, up from 10%, within the next 5 years. Southeast Asian nations will be its main destinations.

China CAMC Engineering Co (SHE: 002051), an international engineering contractor, said it has won a $65.2 million deal for a power grid network in Nairobi, Kenya. The contract equals 13.8% of its total revenue for 2009.

China will invest over ¥3 trillion in the environmental protection sector between 2011 and 2015, more than double the amount made in the previous 5-year period, according to the Ministry of Environmental Protection.

China Everbright Bank Co (SHA: 601818) is considering acquiring a trust company, said chairman Tang Shuangning.

Ford Motor Co said it would launch another 66 dealerships in China by the end of the year with a focus on smaller cities like Nanning (Guangxi autonomous region), Shijiazhuang (Hebei province), Harbin (Heilongjiang province) and Anyang (Henan province). Ford's sales in China jumped 39% to 468,800 units in the 10 months through October 2010.

The city of Beijing plans to have 30,000 clean energy-powered vehicles (23,000 electric and 7000 plug-in hybrid) on the road and 36,000 chargers installed by the end of 2012.

Global Dairy (HKG: 1007), a Heilongjiang province-based dairy maker, announced a plan to spend ¥350 million building a pasture with 10,000 cows anticipated to produce 42,000 liters of milk and 20,000 tons of bioorganic fertilizers annually.