China Industrial news
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Chinese government aims for soft landing
China's overheated real estate market has sparked speculation over whether or not
the country will suffer the same economic disaster Japan did in the 1990s, when real
estate and stock bubbles collapsed, leading to a slump that lasted over a decade.
The Chinese government's stimulus has helped create confidence among
companies inside and outside China, and that has benefited the commercial property
market. People are talking about a bubble, and government is taking actions to make
sure there is not a bubble. So I don't think there is a bubble yet, for the government
has taken actions to prevent that.
The average price of commodity housing in 2009 increased 20.8 percent over 2007, in
which property prices also soared. Even home prices in second and third tier cities
last year surpassed the record high reached in 2007, according to CMR report. Land
prices continued soaring with some plots sold at record prices in succession, even
though the central government has released policies to keep land prices from rising.
Goldman eyes stake in Taikang Life
Goldman Sachs Group Inc.’s private equity unit was in talks to buy some or all of the
15.6 percent stake in China’s Taikang Life Insurance Co. being sold by Axa SA.
Government of Singapore Investment Corp., which holds 8 percent of Taikang, was
also considering raising its stake, the newspaper said. Axa’s holding in Taikang Life
was estimated to be worth US$1 billion, the newspaper reported. Taikang Life had a
market share of about 8 percent, trailing bigger rivals China Life Insurance Co. and
Ping An Insurance Co.
China Investment Corp. finalizes US$956m Apax deal
China Investment Corp.(CIC) had finalized a US$956 million investment deal with
British private equity group Apax Partners. According to CMR report, Apax had already
received the British Financial Services Authority’s approval for the deal, which could
see CIC acquiring a 2.3 percent stake in the company. CIC was also in talks with
Italian power operator Enel SpA on buying a stake in the energy firm and its subsidiary
company Enel Green Power.
ChinaMarketResearch.com 2010-02-08
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