China may lower tariffs on luxury goods by 10%

By Yan Pei
0 CommentsPrint E-mail, November 5, 2009
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China's business press carried the following stories on Friday. has not checked the stories and does not vouch for their accuracy.

China may lower tariffs on luxury goods by 10% -- International Finance News

The Ministry of Commerce is drafting a motion to lower China's tariffs imposed on luxury import goods in an effort to boost sales revenue of the country's luxury market, the International Finance News reported Thursday.

The draft, which will lower import duties on cosmetics, jewelry and leather goods, is expected to be announced by the end of the year and go into effect early next year, the newspaper said.

The newspaper reached out to the Ministry of Commerce but failed to get a reply from the authorities.

Generally speaking, the prices of luxury goods in the overseas market are 30 to 50 percent lower than those in the Chinese market. An AC Nelson survey found that Chinese outbound tourists consume a total of over US$3 billion each year, and their consumption volume is still increasing.

According to a Bain report, the Chinese luxury market will be growing at a speed of 20 to 35 percent in the next five years.

WISCO-CXM deal approved by Australian government -- Shanghai Securities News

Wuhan Iron & Steel (Group) Corporation (WISCO) announced Wednesday that its iron ore cooperation project with Australian miner Centrex Metals Ltd. (CXM) has received the Australian government's approval, Shanghai Securities News reported Thursday.

On Nov. 2, Australia's Foreign Investment Review Board formally approved WISCO's investment in CXM. Two months earlier, the project was reviewed by China's National Development and Research Commission.

According to the newspaper, CXM will sell 15 percent of its shares to WISCO at 0.25 Australian dollars per share for a total of 10.1 million Australian dollars. After the transaction, WISCO will become the second largest shareholder of CXM and will own a membership on CXM's board.

WISCO will spend 216 million Australian dollars on a 60 percent stake of CXM's five tenements which contains 2 billion tons of resources.

WISCO will also set up a 60/40 joint venture with CXM.

NBS's Yao: No need for another round of stimulus package -- Economic Informaiton Daily

There is no need for a second round of the economic stimulus plan in China, as the country's economic growth has been bouncing back in the recent months, chief economist of China's National Bureau of Statistics Yao Jingyuan said Wednesday.

Yao noted that China should focus on adjusting the economic structure next year.

Digital China to invest HK$240 in Japan IT firm -- China Securities Journal

Digital China Holdings announced Wednesday that its subsidiary Digital China Software (BVI) Ltd. and King Tech Service HK Limited, in which Digital China holds a 16.1 percent stake, will buy a 23.65 and 6.96 percent stake, respectively, in Japanese company SJI.

The transaction will cost HK$242 million.

Meanwhile, Digital China Software agreed to transfer the entire stake it holds in DGT Information System Limited to a wholly-owned subsidiary of SJI.

SJI, registered in Japan, is now listed on the JASDAQ stock exchange (stock code: 2315). As of March 31, SJI's annual business revenue was HK$2.21 billion and its total assets were listed at HK$1.76 billion.

CNOOC bought US oil assets from Norway's Statoil -- National Business Daily

Norway's Statoil ASA announced Wednesday in its third quarter report that it has sold part of its four exploration blocks in the Gulf of Mexico to China National Offshore Oil Corporation (CNOOC).

The four blocks Statoil owns in the Gulf of Mexico are Tucker, Logan, Cobra and Krakatoa. CNOOC managed to get a 20, 10, 10 and 10 percent stake in these four blocks, respectively. It's estimated that the transaction will cost CNOOC about US$100 million (680 million yuan).

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