Auto

Chery to recall defective cars

Chinese automaker Chery will recall 17,537 of its A3 models due to defective anti-lock braking system modules, the country's quality watchdog said Monday.

The recall, which involves A3 sedans manufactured from July 17, 2008 to May 31, 2009, will start from Sept 25, the General Administration of Quality Supervision, Inspection and Quarantine said in a statement.

Due to a quality issue, the ABS and ESP (electronic stability program) control modules may malfunction and pose safety hazards.

Chery will replace defective parts free of charge, the statement said.

Metals

Chalco investment yields offset H1 net loss

Shanghai-listed Aluminum Corp of China Ltd (Chalco), the country's top aluminum producer, posted a first-half net loss of 623.8 million yuan ($101.9 million), an 80.82 percent year-on-year decrease.

In the first half of 2012 Chalco's net loss was 3.25 billion yuan.

The report said the net loss was due to lower prices and oversupply for the world's top producer and consumer of the metal.

Chalco's yield from investments in the first half of 2013 was 1.75 billion yuan. Analysts said the yield from investments contributed to Chalco's shrinking net loss amid difficult market conditions, and the aluminum producer may see a net profit by the end of 2013.

Food

Dairy companies see rising revenues

Yili Industrial Group reported half-year revenues of 24.02 billion yuan ($3.9 billion), up 13.41 percent year-on-year.

Another dairy industry giant, China Mengniu Dairy Co Ltd's total revenue in the first half reached 20.67 billion yuan, registering year-on-year growth of 13.3 percent.

Yili's net profit during the period reached 1.75 billion yuan, up 125.06 percent year-on-year while Mengniu generated 750 million yuan in net profit, increasing 16.3 percent compared to a year earlier.

Deals

AMP, China Life ink funds management JV

AMP Capital will establish a new funds management company in China with Life Asset Management Company, a subsidiary of China's largest insurer China Life Insurance Company, Australian and New Zealand independent wealth management company AMP announced Monday.

AMP Capital, a subsidiary of AMP, will hold a 15 percent stake in China Life AMP Asset Management Company, with the balance to be held by China Life Asset Management Company.

The joint venture has received regulatory approval from the China Insurance Regulatory Commission, and is subject to regulatory approval by the China Securities Regulatory Commission.

It will be China Life's first joint venture on the Chinese mainland with a foreign partner in funds management.

Policy

Higher taxes for plane, lignite imports

Value-added tax on imports of planes with an empty weight of above 25 metric tons has been increased from 4 percent to 5 percent, the government said on Monday.

Imported planes with an empty weight between 25 and 45 metric tons will now have a tax rate of 5 percent compared with 1 percent earlier, a statement posted on the central government's website said.

The country has also scrapped its zero-tariff policy on imports of lignite, a form of low-rank coal. Instead, a 3-percent tax has been resumed on imports, the statement said. It said that these adjustments had become effective on Aug 30.

China Daily-Agencies

Chery will recall 17,537 of its A3 models due to defective anti-lock braking system modules. Provided to China Daily

(China Daily European Weekly 09/06/2013 page14)