China Market Pulse: Rich Families, Grain Output, Vanke, 360buy, IC Design

There are 670,000 households that possess at least $1 million worth of assets in China, ranking third globally after the US and Japan, but that amount represent just 0.2% of total households in the country, a BCG report has found. The assets were defined as cash, bank savings, stocks, bonds, funds, insurances and annuities only.

China's grain production grew 2.9% to 546.41 million tons in 2010, marking the 7th straight year of gains, according to the National Bureau of Statistics.

China's government is considering investing $1.5 trillion in the hi-tech sector over the coming 5 years, according to a well informed source. Among the industries to benefit will be renewable energy, biotech, next-generation IT, complex machinery, advanced materials, substitute fuel-powered vehicles and environmental protection.

20% of China's agricultural products are now sold in supermarket, up from 15% 5 years ago, according to the commerce ministry. Most produce is sold in wet markets and outdoor markets. The farm-to-supermarket model saves 15% of logistics costs.

The revenue of China's integrated circuit design industry is expected to rise 44.6% to ¥55 billion ($1 = ¥6.7) in 2010, according to the China Semiconductor Industry Association.

360buy.com, China's top B2C retailer, is expected to generate ¥10.2 billion in revenue this year, up 250% from last year's, said chairman and CEO Liu Dongqiang. The website has just received the other half of the $150 million venture capital funding promised by Tiger Global Management earlier this year.

China Vanke Co (SHE: 000002) has sold 8.3 million m2 of properties fetching over ¥100 billion as of 1 Dec 2010, becoming the nation's first property developer to reach the threshold.

MCC Meili Paper Industry Co (SHE: 000815), the largest papermaker in northwestern China, said it will spend ¥84 million building a solar power station expected to transmit 4.4 million kW hours a year to the company. Half of the costs will be funded by the government, an official told Yicai.com.

Shanghai Chengtou Holding Co (SHA: 600649), a property developer and utility service provider, said one of its subsidiaries has listed a 30% stake in another subsidiary for over ¥1 billion. Zhidi Property Co currently owns 30% of Ruicheng Property Co, which has ¥855 million in registered capital.

GM's China sales hit a monthly record of 197,000 units in Nov, up 11.2% year on year. Sales for the 11 months through Nov rose 32.7% to 2.17 million.

Rio Tinto has paired up with Chou Tai Fook, a Hong Kong-based jeweler, to explore China's burgeoning diamond market. China's diamond processing trade is estimated to be worth $2.5 billion this year.

China's commerce ministry has given the final approval for Carlsberg to acquire a 12.25% stake in Chongqing Brewery for $359 million. The deal will increase the Danish brewer's ownership to 29.7%.

South Korea's Samsung intends to invest $300 million in its R&D division in China by 2015. The local R&D personnel will increase to 7000.