PRC acts on property prices
China’s banking regulator says lenders should tighten lending to property developers as it responds to a Cabinet directive to rein in property-price increases. Commercial banks must “significantly" raise required down payments for luxury properties, and assign higher risks to real-estate loans, the China Banking Regulatory Commission said in a statement on its Web site yesterday. China’s authorities are under increasing pressure after taxes and higher mortgage rates imposed last year failed to prevent prices rebounding, prompting complaints that property has become unaffordable for many people. Surging real-estate prices may fuel social unrest and raise the risk of a collapse that could cause a sudden slowdown in the world’s fastest-growing major economy and derail the restructuring of its US$4.7 trillion banking system. Requiring higher down payments “will probably slow down property transactions," said Jing Ulrich, chairman of China equities at JPMorgan Chase & Co. “In some segments of the property market, the prices are out of whack, especially for the luxury end.”
Japanese firms take lead
Toyota Motor Corp, Nissan Motor Co, Honda Motor Co and other Japanese carmakers overtook Volkswagen AG and other European automakers in combined market share in China last year, Fitch Ratings Ltd said yesterday. Japanese automakers had about 27 percent of the Chinese automobile market last year while the share of European automakers fell to about 22 percent, Matthew Kwong, associate director of Fitch Ratings said in an interview in Beijing yesterday. Japanese automakers, which entered the Chinese market more than a decade after Volkswagen, are accelerating expansion in the world’s third largest vehicle market as they introduce more models and raise production capacity. Toyota, which currently has annual production capacity of 340,000 units, is investing 215 billion yen (US$1.9 billion) in China and aims to boost capacity to 690,000 units. European automakers had about half of China’s vehicle market in 2002. They may regain some share as PSA Peugeot Citroen and Volkswagen introduce new models in China, though they may not regain their leading position, Kwong said. Chery Automobile Co, Geely Automobile Holdings Ltd and other Chinese automakers had about 25 percent of their domestic market, Fitch said.
BMG blocks IPO
Bertelsmann AG, Europe’s biggest media company, will buy the 25 percent stake held by Groupe Bruxelles Lambert SA for 4.5 billion euros (US$5.74 billion) to prevent the investor from seeking an initial public offering. Bertelsmann, controlled by the Mohn family, will finance the acquisition with a bridge loan and put its BMG Music Publishing division up for sale. The Guetersloh, Germany-based company anticipates “many" potential BMG investors, Chief Financial Officer Thomas Rabe said on a conference call yesterday. The Mohn family will regain full control of a company that has been closely held since starting up in 1835 as a publisher of hymn books and religious material. Belgian billionaire Albert Frere’s Groupe Bruxelles gained the stake in 2001, and said in January it might seek an IPO to profit from the holding. The stake purchase is the second successful attempt within four years by the Mohns to prevent a share sale.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source