Banks merge in Macau. Guangzhou auto merges too. Dongguan workforce down 10%, says Mayor Li. Shenzhen stockboard on track. 80,000 HK residents now living in Shenzhen.
Banking on Macau
In ongoing efforts to diversify the Macau economy, Portguese banks Banco Espirito Santo (BES) and Millenium BCP inked cooperation agreements with the Macau branch of the Industrial and Commercial Bank of China. Pedro Fernandes Homem, the director of BES, told reporters that the venture will, "facilitate transfers by individuals and support Chinese and and Portuguese companies wishing to invest in BES's strategic markets and in China." Mr.Homem added that, "There is a significant Chinese community in Portugal with families and interest in investing in China, as well as Chinese companies wanting to break into the African and Brazilian markets, where BES has a very strong presence."
The first phase will see entrenchment in the Macau market with further expansion into Beijing and Shanghai, where ICBC is firmly established. Later this year, BES will seek to open a branch office in Hong Kong, which will have commercial, investment and private banking services. The venture was made possible thanks to new investment in ICBC Macau with a merger with Seng Heng. The latter is owned by Dr. Stanley Ho, who had a 70% stake in it.
Guangzhou auto merger
Guangzhou Automobile Group Co. has signed an agreement with Zhejiang Gonow Auto, a private company based in Hangzhou. The 50-50 joint venture is in the framework stages, but is expected to steam ahead without too many bumps, reports Chinese media. Gonow Auto president Miao Xuezhong told local media that both sides are finalizing details, but it will ential an upgrade of Gonow's plant in Hangzhou. In function, Gonow will inject fixed assets whil GAC will slap down hard cash.
Dongguan work-force contracts 10%
As orders remain low, Dongguan's workforce is continuing to feel the pangs. During the first half of 2009, the overall workforce shrank 10% year-on-year, a loss of 630,000 workers, said Dongguan Mayor Li Yuquan. That puts Dongguan's workforce at roughly 5.7 million. During this same period, the city's exports fell 24% year-on-year with a paltry growth rate of .6%. Mayor Li said the city faces immense pressure to reach at growth target of 10%, which seems impossible as orders continue to plunge. To stave off the crunch for small and medium enteprises, Dongguan has allocated RMB 1 billion for emergency financing. It has also set aside RMB 4 billion for technological upgrades. So far, about 1,200 enterprises have utilized the funds and government will provided enterprises with an additional RMB 20 billion in bank loads, said Mayor Li. Over the nedxt five years, Dongguan will pump RMB 730 billion into infrastructure development.
Shenzhen market board on track for October
Reports suggest that the October opening of the New Marketboard on the Shenzhen Stock Exchange is still on track. Currently, the exchange is seeing securities companies call for investors to open an account with them as soon as possible. There is hope that investors will not rest on their laurels until October and instead get into the action now. Most of the securities companies have prepapred contingency plans, which entail hiring additional staff, arrangiing business, reserving orders and readying training classes for when the new market board opens, say reports.
80,000 HK residents make Shenzhen their home
Improved border checkpoints and new apartments and infrastructure have led 80,000 Hong Kong residents to move to Shenzhen, say reports. By district, 30,000 Hong Konggers are clustered in the writhing Luohu district, with 70 percent of them holding commuter day jobs in Hong Kong. Their average monthly income is RMB 9,988, and the majority of them hold down blue collar work. An additional 50,000 workers hold white collar management positions and live in Futian and Shekou. An unspecified amount commute to Baoan district and own factories.
Hong Kong residents, after US companies, are the largest investors in Shenzhen. During the first half of 2009, 90 of the 114 service industry projects in Luohu. Currently, there is a movement to improve medical and social services to make Shenzhen more attractive for Hong Kong residents, say reports.
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