Currency

China and New Zealand discuss convertibility

China and New Zealand are in the early stages of negotiating the direct convertibility of each other's currency, but an agreement is likely to be some way off. The talks were initiated during New Zealand Prime Minister John Key's visit to China in April. New Zealand's exports to China jumped 32 percent in the first quarter, surpassing shipments to Australia for the first time, led by dairy products, logs and meat. New Zealand targets NZ$20 billion ($16.2 billion; 12.6 billion euros) in two-way annual trade with China by 2015 from about NZ$15.2 billion in the fiscal year ending March.

Investment

Club Med receives $699m offer

Club Mediterranee SA of France has received a takeover bid from its management and two largest shareholders, Axa Private Equity and Fosun International Ltd, that values the tour operator at 540 million euros ($699 million; 542 million euros). The bidders are proposing 17 euros for each share, according to a statement on May 27, 23 percent more than the closing price on March 24. Club Med rose as much as 25 percent in Paris trading, the most in more than two decades.

Trade

Bicycle anti-subsidy tariff threat dropped

The European Union dropped a threat to impose tariffs on bicycles from China to counter alleged subsidies for Chinese exporters, marking a respite in the EU's wider battle to protect its producers. The EU recently closed a probe into whether Chinese bike makers receive trade-distorting government aid. The European Bicycle Manufacturers Association withdrew its subsidy complaint on March 22, the European Commission said on May 23.

Energy

Oil drops on Chinese economic outlook

West Texas Intermediate crude fell for a fifth consecutive day on May 27, the longest run of declines this year, as China signaled it may allow slower economic growth. OPEC was expected to keep supply unchanged at a meeting this week. Futures slid as much as 1 percent in New York, extending a 2 percent drop last week. China, the world's second-biggest oil consumer, will not sacrifice the environment to ensure short-term growth, President Xi Jinping said last week.

PetroChina to boost imports of natural gas

PetroChina will boost natural gas imports to try to ease the country's growing supply gap, its chairman said on May 23, a move that could pressure the earnings of China's dominant oil and gas producer. "PetroChina will boost natural gas from overseas, including Central Asia and Russia, to meet the demand for clean energy," chairman Zhou Jiping told reporters after the company's AGM. China imported 42.5 billion cubic meters of natural gas last year, up 31.1 percent from the previous year.

Retail

Italian menswear firm expands presence

Canali Holding SpA, the Italian menswear retailer, expects sales in China to grow 15 percent this year as the company expands its footprint in the world's second-largest economy. The closely held retailer, which reported sales growth of 15 percent last year, plans to open five new boutiques across China. The company now has 60 outlets in the country. While the growth in the Chinese economy "is slowing a little bit, it will be one of the most important markets for us", said Stefano Canali, the group's general manager.

China Daily-Agencies

(China Daily European Weekly 05/31/2013 page18)