SKY SURFERS In­flight Wi­Fi now seen as vital service p16 IN THE MAJOR TARGET Pharma firms eye US acquisition p17 PIPELINE CNPC vows to wrap up key reforms by November BUSINESS p17 CHINA DAILY » CHINADAILY.COM.CN/BUSINESS Tuesday, August 15, 2017 Yuan rate ‘has more room for maneuver’ the central bank added a new Expert: Controlled counter­cyclical factor to the regime will be current yuan’s pricing regime in May. good option for While the weak dollar and capital outflow control meas­ further reform ures played key roles, intro­ ducing the factor helped By WANG YANFEI stabilize market expectations, [email protected] and diminished expectations that currency was on a weak­ China has further room to ening trend, according to improve the current con­ Guan. trolled floating exchange rate “The improved pricing regime, as it moves toward the regime helped beat one­way ultimate goal to allowing the bets on the currency, guiding yuan to float freely, said a the market to pay more atten­ former senior official with the tion to changes in economic nation’s top forex regulator. fundamentals and fluctua­ Guan Tao, a former senior The improved pric­ tions in multilateral exchange official with the State Admin­ rates,” he said. Two employees of Kweichow Moutai Co package liquor at the company’s production line in Maotai town in Guizhou province. istration of Foreign Exchange, ing regime helped The recent stronger yuan PROVIDED TO CHINA DAILY said the central bank has reflected the market’s adjust­ made proper adjustments to beat one­way bets ment to better­than­expected the current pricing regime by on the currency.” economic fundamentals, adding a counter­cyclical fac­ instead of central bank’s inter­ Holiday season gives Moutai cheer tor in May, but it is still a “tran­ Guan Tao, a former senior offi­ vention, according to Guan. sitional means”. cial with the State Administration By the end of Friday, the A controlled but not trans­ of Foreign Exchange yuan index stood at 94.03, up By ZHU WENQIAN Change of Kweichow Moutai Co's share price (2016-17) ance of other leading Chinese parent floating regime will be by 1.17 points compared to the in Beijing and liquor companies has been 540 a good option to further imple­ previous week, latest data in Guiyang 72% outstanding. On Monday, YANG JUN 500.10 ment reform, because abso­ be properly evaluated in order from the China Foreign shares of Sichuan­based Wul­ 480 lute transparency might to prevent risks, according to Exchange Trade System Kweichow Moutai Co, the 53% iangye climbed 2.46 percent trigger cyclical behavior in the Guan. showed on Monday. best­known high­end Chi­ to close at 57.38 yuan, and 420 market, and is not appropriate The central bank imple­ In the meantime, the gov­ nese liquor, has witnessed ris­ 34% shares of Sichuan­based Luz­ under current circumstances, mented a fixing mechanism ernment is able to allow more ing demand and a supply houLaojiao Group edged up according to Guan. change on Aug 11, 2015, result­ domestic non­banking finan­ shortage in the weeks leading 360 0.72 percent. In the long run, using a for­ ed in the yuan plunging more cial institutions and foreign up to Mid­Autumn Lantern 15% Shenwan Hongyuan Secu­ mula to price the currency will than 6 percent against the dol­ investors to enter the forex Festival and the National Day 300 rities said Chinese liquor has -5% not be the ultimate choice, lar and reaching its lowest market, because more diversi­ holiday. 287.56 been performing well and because exchange rate man­ point since 2008. fied participation will help With more people ordering 2016/7/21 2017/1 2017/4 2017/8/14 exceeding expectations in the agement cannot make choices “Based upon the yuan’s per­ avoid similar risks, he said. Moutai for family dinners Source: sina.com.cn LIU LUNAN / CHINA DAILY second quarter. The price of on behalf of the market, he formance since the reform two He said China also needs to and banquets, retailers said Moutai is likely to increase in said. years ago, steps can be taken strengthen efforts to imple­ they are experiencing a short­ inventory, meaning there will nearly 50 percent this year. the second half year amid a Prior to seeing a clean float when the circumstances are ment supply­side reform, age, and expect a further be 100 tons of Moutai liquor Moutai’s market value bullish market. of yuan’s exchange rate, or a favorable,” he said. because economic fundamen­ jump in business with the available on the market. exceeded 600 billion yuan, In the next two to three free float mechanism, any In comparison, the yuan tals are vital to implement arrival of the festival. At some supermarkets and which topped that of other years, Moutai’s imbalance steps moving forward should gained against the dollar after exchange rate reforms. A 500 ml bottle of Moutai’s liquor stores, a 500 ml bottle global liquor producers. between supply and demand classic Feitian 53 percent of Moutai’s classic Feitian 53 On Monday, Moutai shares is expected to level off, and its liquor has been selling for as percent liquor retails for as jumped 3.26 percent to close price has the potential to con­ much as 1,299 yuan ($195) on much as 1,500 yuan. at 499.83 yuan ($75). Its tinue to rise, it said. Currency expected to be on JD.com, one of China’s lead­ In order to control the mar­ share price is now the highest BOC International said it ing online shopping plat­ ket price, Moutai appointed among listed Chinese compa­ will maintain a buy rating for forms. Consumers need to 70 sales outlets in Beijing to nies. Moutai shares. It forecasts click the “rush to purchase” provide products at 1,299 At one point during trad­ that in 2018, the share price the higher side in second half button as the stock is tight, yuan per bottle, and the com­ ing on Monday, its share price of Moutai is expected to reach and each account can only pany will soon apply similar reached a record 500.1 yuan, 600 yuan, higher than its ear­ By CAI XIAO tral and southern regions,” purchase one bottle at this policies nationwide. becoming the first Chinese lier prediction of 550 yuan. [email protected] said Malmgren. price. Meanwhile, its share price stock to be traded at more She added that the most Starting from Aug 15, has been consistently than 500 yuan in the A­share Contact the writers at The yuan is expected to be dynamic state among the Moutai plans to supply 4,500 advancing. So far, the share market. zhuwenqian@ on the higher side in the sec­ regions is Texas because it is tons of liquor to increase the price of Moutai has surged In addition, the perform­ chinadaily.com.cn ond half of 2017 as China’s cap­ growing very fast and has a ital outflows reduce and strong entrepreneurial environ­ optimism grows over the ment. Texas is the center of bio­ nation’s economic growth, medical research in the US, and Nation on track for 5 maglev lines by 2020 said a senior US economist. its capital Austin is a new “Sili­ “As Chinese companies have con Valley” with strong software fewer outbound mergers and and hardware industries. By ZHONG NAN acquisitions this year, capital China was the third­largest in Beijing and ZHANG outflows are also lower,” said inbound M&A investor in the XIAOMIN in Dalian, Liaoning Pippa Malmgren, a US econo­ US in 2016, with deals worth mist who served as an advisor $62.6 billion. In the first half of China will operate more to former US President George 2017, however, China ranked than five magnetic levitation W. Bush on economic policy only ninth, with $6.1 billion rail lines with maximum and financial markets. As Chinese worth of deals, according to a speed of 160 kilometers per “In the first and the second report from international law hour in cities including quarters, China’s GDP grew at companies have firm White & Case. Chengdu, Wuhan and a respectable rate of 6.9 per­ Inbound activity from Chi­ Guangzhou by 2020, said its cent year­on­year, beating fewer outbound na, one of the most active manufacturer CRRC Dalian expectations.” mergers and M&A investors in the US in Co Ltd on Monday. “So I believe the yuan will recent years, has fallen sharply A new generation of Chi­ become stronger in the second acquisitions this so far this year due to a combi­ nese medium­to­low speed half of this year,” she said. nation of growing protection­ magnetically levitated or The currency, which at the year, capital ism in the US and tighter maglev trains, manufactured start of the year traded at its outbound M&A regulation in by CRRC Dalian, a subsidiary A new generation of Chinese medium­to­low speed maglev trains, which can run at a maximum weakest level since 2008, has outflows are China, said the report. of China Railway Rolling speed of 160 kph. PROVIDED TO CHINA DAILY roared back since the end of Malmgren said regarding Stock Corp, completed test May. also lower.” US regulations on cross­bor­ runs at a test speed of 120 kph Malmgren also said the der mergers and acquisitions, in Shanghai earlier this lowing eight years of research under 100 kph. As the test Beijing is building a low­ United States welcomes Chi­ Pippa Malmgren, Chinese investment is poten­ month.