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he-man
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It makes me think about "golden eye" from 007.
oh god that woman villain was sexy as hell..................
Edison Chen
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More than two decades after taking their first bite into the Chinese market, Western fast-food chains are not resting on their laurels.
From makeovers of premises to revamped menus, the likes of McDonald’s and KFC are stepping up their efforts to meet the evolving tastes and lifestyles of Chinese consumers.
And local operators such as Dicos are losing no time in keeping up with the industry pioneers.
KFC, the fried chicken chain owned by global fast-food giant Yum Brands, unveiled its new look for the mainland market last month at one of its restaurants in south Beijing.
Beige walls, modern paintings, wooden chairs and potted plants come together in a design overhaul aimed at creating a relaxing environment. The company defines its new image as “dining room”, dispensing with the bold red-and-white colour theme familiar to its customers worldwide.
“This is more like a coffee shop rather than a fast-food restaurant,” said Wu Xin, an office worker at a nearby engineering company who ordered a chicken burger for lunch in the newly renovated restaurant.
“I think it’s a good idea for KFC to make some changes and give people adifferent feeling.”
KFC, which blazed a trail in bringing Western-style chips and burgers to China with its first restaurant in Beijing’s Qianmen commercial area in 1987, has reaped the rewards from its first-mover advantage.
Over the past two decades, tens of millions of urban consumers have taken to the chain’s efficient service, standardised menu and templated dining environment – well timed to capitalise on the growth in the mainland’s middle class.
The brand – with its origins in Kentucky, home to Colonel Sanders’ secret recipe – has opened almost 4,600 restaurants on the mainland. Dicos, an American-style fried chicken chain controlled by Taiwanese food giant Ting Hsin International, has about 2,200 outlets. McDonald’s, the world’s No 1 hamburger chain, is next, with about 2,000 branches on the mainland.
Despite their market penetration, the top fast-food brands have been under mounting pressure in recent years as mainlanders gain more dining options – and an increasing awareness of health and food safety.
“The novelty is wearing off for Chinese consumers,” said Shi Jun, a director of Beijing-based consulting firm Alliance PKU Management Consultant.
“Although Western fast food chains are still expanding aggressively, their market share [on the mainland] is falling. Their rivals are not only Chinese-style fast-food companies but also coffee shops, dessert shops and bakeries.”
KFC and McDonald’s battled bad press after local media reported that a supplier for the market leaders fed poultry with excessive antibiotics in December 2012. Then an outbreak of H7N9 avian flu on the mainland set panic among chicken consumers.
These concerns resulted in a 15 per cent drop in KFC China’s same-store sales for last year, while McDonald’s scaled down a shop-opening plan for the year and adopted a conservative pricing strategy.
After the dust settled, the top fast-food players have shown through a range of initiatives a determination to help Chinese regain their appetite for fast food.
KFC, aside from its new restaurant image, unveiled 15 new dishes earlier this year, including Sichuan-style roast chicken wings and popcorn chicken.
“[To launch so many new dishes in one go] is unprecedented in KFC’s history,” said Yum Brands China’s chief executive officer Su Jingshi, vowing that the chain will update its menu in China at least once a year.
In April, McDonald’s opened the first of its “new generation” outlets in Guangzhou. The décor incorporates Chinese elements such as lanterns and abacuses. In December, it revitalised its menu by adding several Chinese-style dishes, like rice topped with meat and fried dough.
The two US-based chains are also changing the way they expand on the mainland. Earlier this year, McDonald’s and KFC opened franchises in first-tier cities like Shanghai, Shenzhen and Beijing. Previously, all their outlets were directly managed.
In May, Dicos, a strong force in third-tier and four-tier cities, said it would encourage managers at its directly run outlets to also open their own franchised shops. The company’s aim is to open more high-quality shops and have them serve as models for the franchise.
“During the past 10 years, we were mainly pursuing an increase in shop numbers. But now we are focusing on how to improve our service quality and management levels. Otherwise, no franchisees would like to follow you in the long run,” said Gary Shao, president of the Dicos business division.
After being acquired by Ting Hsin in 1996, Dicos chose franchising as its main mode of expansion.
“That was the golden time [for fast-food restaurants]. And big brands were less willing to share their profits with other people,” Shao said.
“But now it’s time to change. You must push harder if you want to remain a leader in this market.”
Despite the industry downturn last year, Shao believes Western-style fast food still has room for growth in China. Dicos plans to open as many as 500 shops on the mainland this year, and first- and second-tier cities will be its new targets.
KFC or McDonalds, if not reinvent their menu to Chinese customer's appetite, they probable will lose competition to other Chinese fast food chain. To be honest, Chinese can't really get used to the original taste of KFC or McDonald, the day when they plan to open more franchise store in China, they already make changes, now they will consider more strategic changes. Personally I don't like those food, I would rather choose Chinese fast food, like zhengongfu.
From makeovers of premises to revamped menus, the likes of McDonald’s and KFC are stepping up their efforts to meet the evolving tastes and lifestyles of Chinese consumers.
And local operators such as Dicos are losing no time in keeping up with the industry pioneers.
KFC, the fried chicken chain owned by global fast-food giant Yum Brands, unveiled its new look for the mainland market last month at one of its restaurants in south Beijing.
Beige walls, modern paintings, wooden chairs and potted plants come together in a design overhaul aimed at creating a relaxing environment. The company defines its new image as “dining room”, dispensing with the bold red-and-white colour theme familiar to its customers worldwide.
“This is more like a coffee shop rather than a fast-food restaurant,” said Wu Xin, an office worker at a nearby engineering company who ordered a chicken burger for lunch in the newly renovated restaurant.
“I think it’s a good idea for KFC to make some changes and give people adifferent feeling.”
KFC, which blazed a trail in bringing Western-style chips and burgers to China with its first restaurant in Beijing’s Qianmen commercial area in 1987, has reaped the rewards from its first-mover advantage.
Over the past two decades, tens of millions of urban consumers have taken to the chain’s efficient service, standardised menu and templated dining environment – well timed to capitalise on the growth in the mainland’s middle class.
The brand – with its origins in Kentucky, home to Colonel Sanders’ secret recipe – has opened almost 4,600 restaurants on the mainland. Dicos, an American-style fried chicken chain controlled by Taiwanese food giant Ting Hsin International, has about 2,200 outlets. McDonald’s, the world’s No 1 hamburger chain, is next, with about 2,000 branches on the mainland.
Despite their market penetration, the top fast-food brands have been under mounting pressure in recent years as mainlanders gain more dining options – and an increasing awareness of health and food safety.
“The novelty is wearing off for Chinese consumers,” said Shi Jun, a director of Beijing-based consulting firm Alliance PKU Management Consultant.
“Although Western fast food chains are still expanding aggressively, their market share [on the mainland] is falling. Their rivals are not only Chinese-style fast-food companies but also coffee shops, dessert shops and bakeries.”
KFC and McDonald’s battled bad press after local media reported that a supplier for the market leaders fed poultry with excessive antibiotics in December 2012. Then an outbreak of H7N9 avian flu on the mainland set panic among chicken consumers.
These concerns resulted in a 15 per cent drop in KFC China’s same-store sales for last year, while McDonald’s scaled down a shop-opening plan for the year and adopted a conservative pricing strategy.
After the dust settled, the top fast-food players have shown through a range of initiatives a determination to help Chinese regain their appetite for fast food.
KFC, aside from its new restaurant image, unveiled 15 new dishes earlier this year, including Sichuan-style roast chicken wings and popcorn chicken.
“[To launch so many new dishes in one go] is unprecedented in KFC’s history,” said Yum Brands China’s chief executive officer Su Jingshi, vowing that the chain will update its menu in China at least once a year.
In April, McDonald’s opened the first of its “new generation” outlets in Guangzhou. The décor incorporates Chinese elements such as lanterns and abacuses. In December, it revitalised its menu by adding several Chinese-style dishes, like rice topped with meat and fried dough.
The two US-based chains are also changing the way they expand on the mainland. Earlier this year, McDonald’s and KFC opened franchises in first-tier cities like Shanghai, Shenzhen and Beijing. Previously, all their outlets were directly managed.
In May, Dicos, a strong force in third-tier and four-tier cities, said it would encourage managers at its directly run outlets to also open their own franchised shops. The company’s aim is to open more high-quality shops and have them serve as models for the franchise.
“During the past 10 years, we were mainly pursuing an increase in shop numbers. But now we are focusing on how to improve our service quality and management levels. Otherwise, no franchisees would like to follow you in the long run,” said Gary Shao, president of the Dicos business division.
After being acquired by Ting Hsin in 1996, Dicos chose franchising as its main mode of expansion.
“That was the golden time [for fast-food restaurants]. And big brands were less willing to share their profits with other people,” Shao said.
“But now it’s time to change. You must push harder if you want to remain a leader in this market.”
Despite the industry downturn last year, Shao believes Western-style fast food still has room for growth in China. Dicos plans to open as many as 500 shops on the mainland this year, and first- and second-tier cities will be its new targets.
KFC or McDonalds, if not reinvent their menu to Chinese customer's appetite, they probable will lose competition to other Chinese fast food chain. To be honest, Chinese can't really get used to the original taste of KFC or McDonald, the day when they plan to open more franchise store in China, they already make changes, now they will consider more strategic changes. Personally I don't like those food, I would rather choose Chinese fast food, like zhengongfu.
Götterdämmerung
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Er, KFC is as foreign to Europeans as to Chinese. Any proud European would consider McD or Burger King not part of our sophisticated culinary culture and regard them as American, err well, food. So, to sum them up as Western is indeed mislabeling.
Mr.S.Singh
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Nandos and rouge cafe :p
Edison Chen
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How about pizza express in UK? Is it good?
Mr.S.Singh
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it is but its the colege going students who prefer fast food, most people go for freshly prepared food
cirr
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Kandi Technologies Dominates China's Electric Car Market 
Michael Nguyen
Jul. 21, 2014 1:58 AM ET
Summary
My previous article gave readers a background of Kandi's transformation to an EV company, Kandi Technologies Group, Inc. (NASDAQ: KNDI) and Geely's (NASDAQ: OTCPK:OTCPK:GELYY) joint venture which yielded the successful CarShare and the group leasing programs. This article covers the latest exciting developments of Kandi JV and China.
Sequential Production Increase In Q2 2014
After a slow start, China's NEV production has accelerated. In 2013, 17,642 new energy vehicles were sold, a year-over-year increase of 37.9%. In the first six months of this year, Chinese car companies have sold a record 20,477 NEV. Q2 sales of 13,624 NEV, which doubled Q1 sales of 6,853.
Industry insiders estimate that with the NEV subsidy policies and purchase tax exemption, the full-year sales of NEV will exceed a record 50,000 units this year, representing a 200% increase year over year.
KNDI is the leader in the first half of this year of both EV production and sales. KNDI JV ended Q2 2014 with a bang, produced 4,115 EV and sold 4,114 EV to record its best quarter ever. In comparison, it sold 1,215 cars in Q1, and 4,694 cars in all of 2013.
Annual NEV Sales in China from domestic brands (Data from CAIA)
Kandi's New "Urban Beauty" Electric Car
On July 9, Kandi EV Group's first Supplier Conference was successfully held in Hangzhou's First World Hotel. The General Assembly to "seize the opportunity and create win-win" as the theme, more than 160 representatives of more than 200 vendors from across the country to participate.
During the conference, Kandi debuted the new EV called "Urban Beauty" which generated strong interest. The new two-door sporty car contains some of the most intelligent and technologically advanced features among leading domestic car producers.
KNDI reported in its most recent Form 10-Q that it's been working on the new EV model SMA7005BEV. Mr Hu also confirmed the company is working on new models based on the Panda platform. Since the Panda is a four-door electric sedan, the "Urban Beauty" does not appear to descend from the Panda, therefore the new EV model SMA7005BEV could be a new and different car.
China Securities News on July 11 posted KNDI is in cooperation with Alibaba(heck, this company is omnipresent) to launch its electric car platform. The news suggested that the two companies developed a "hot and trendy" EV using this platform. No other details were disclosed. With Alibaba making headlines about its upcoming IPO in the U.S., this would indicate a lot of visibility for KNDI when they announce the co-operation detail.
The new Kandi's "Urban Beauty" mini EV (Source: D1EV.com)
The Mini Electric Vehicle Market Boom
Why Kandi is building another mini EV? Southern Wealth Network on July 15 summarized Kandi's coverage by Haitong Securities with the headline "Mini electric car barbaric growth." The report forecasts 30,000 mini EV sales this year, accounting for 40% of China's NEV sales. Next year, mini EV sales could exceed 100,000 units. Haitong reiterated "overweight" rating for Kandi stocks.
According to the report, the mini EV market is being born in the context of overweight subsidies, which provide lots of room for profits. At this stage, mini EV is in the interest of all parties to achieve a win-win situation. For consumers, cost-effective, attractive; for businesses, high consumer demands, good profit model and high rate of return; and for government, the successful achievement of EV targets.
Currently the main mini EV companies include Kandi JV, Zotye and Chery. Compared to conventional cars and traditional electric cars, mini EV attracts more consumers because it is cost-effective, practical and convenient. The mini EV market is vast, especially in the second and third tier cities and towns.
From the production and sales statistics in the first half of this year, mini EV has been in a leading position. Kandi has been the leader, followed by Zotye. Because mini EVs are extremely sensitive to the subsidy policies, as more and more local subsidies are announced, coupled with the purchase tax relief, mini EV sales are expected to accelerate in the second half. As production increases, the cost to build mini EV declines, which means increased earnings for mini EV companies.
In addition to an overweight rating by Haitong Securities, on July 2nd Kandi also received a second overweight recommendation by Bloomberg, Essence International suggesting that Kandi EV sales this year could exceed 12,500 units.
(click to enlarge)
Kandi's EV lineup (Source: Kandi and D1EV.com)
NEV Purchase Tax Exemption
Premier Li Keqiang on July 9 announced at the State Council executive meeting that the Central Government decided to exempt NEV purchase tax of 10% for vehicles purchased from September 1, 2014 until the end of 2017. The aim is to stimulate domestic demand for consumer purchases of NEV. The Orient Securities said it expects the introduction of the tax policy will ensure faster growth rate in NEV sales.
ChinaEV.org reported that the Chinese Central government has been studying tax relief policies since March, to bolster sales of new energy vehicle (NEV) after past incentives failed to spur high enough demand to meet set goals, said Vice Premier Ma Kai during his visit of New Energy Automobile Enterprises in Shenzhen.
Last year, the government offered subsidies totaling $4.25 billion to stimulate the purchase of NEVs.
New Central Government Vehicle Mandate
On July 13, China released a statement requiring that electric cars must make up at least 30 percent of government vehicle purchases by 2016, the latest measure to fight pollution and cut energy use. Central government ministries and agencies will take the lead on purchases of NEVs, and will be offered subsidies. President Xi Jinping urges government agencies to buy domestic brands.
Under the new guidance, the number of government vehicles shall not be less than 10% for 2014, 20% for 2015 and 30% for 2016. The ratio will be raised beyond 2016, when local provinces are required to meet the target. According to the Automobile Association Secretary General Dong Yang's forecast, this year government officials' NEV procurement will reach 30,000, approximately 60% of total NEV annual sales.
"The second half of this year, with the implementation of the national purchase tax incentives and government procurement of the NEV, sales of NEV will skyrocket." Said Ma Jing, Shanghai Municipal Commissioner at the Shanghai municipal government news conference.
The new rules also require government agencies to build charging stations and improve other infrastructure for green vehicles. The new guidance came just a few days after China scrapped a purchase tax for green vehicles, fearing that it had fallen far behind in meeting its target of putting 500,000 new-energy vehicles on the road by next year.
Proposed Charging Pile Subsidies
Zhengbao reporters on July 2nd disclosed the Central Government will soon introduce a new charging facility subsidy policy. Once the Central Government releases its charging pile subsidy terms and conditions, the number of charging facilities is expected to multiply, accelerating NEV sales further. Shanghai and other local governments have already launched the charging infrastructure subsidy programs while most of the country is still waiting for a central subsidy policy to be released.
The Central Government recognizes development of the NEV market requires charging facilities multiplication. CCID Consulting's latest report stated that in 2013 China's electric vehicle charging station industry reached $574 million, in 2016 it will reach $5.3 billion, a stunning increase of tenfold in just three years.
Hangzhou Subsidies
All eyes are on Hangzhou as it's finalizing the new subsidy policy. In August 2010, Hangzhou introduced a policy that subsidized up to $9,600 for individuals for NEV purchases. The policy expired at the end of December last year. The lack of the new policy has hurt the local auto industry, and the city government has been under tremendous pressure to release its updated policy. When the new policy is released, it will open the floodgate for EV sales and Kandi group leasing activities, and also means significant retroactive Hangzhou city subsidy checks will be mailed to EV companies. My last articlementioned Kandi JV has already delivered 6755 EV to Hangzhou CarShare project, this means a fat subsidy check will be in the mail to Kandi soon after the new subsidy policy is announced.
Meanwhile in Hangzhou, the chance of winning a car plate gets slimmer, down to 1.7 percent in July from 2.2 percent in June. Hangzhou holds a car plate auction and lottery every month to issue 80,000 plates a year. A total of 398,101 people have signed up for the July auction and lottery, about 80,000 more than June, while the number of car plates available for July is only 6,750. Hangzhou sold 7,091 car plates last month at an average price of $2,482 for individual buyers and $3,180 for institutional buyers.
Technical Analysis
Last week KNDI gapped up over the head-and-shoulder resistance level at 15, flirting with 52-week closing high before closing the week at 19.62. Weekly volume was a record. Weekly chart shows six continuous weeks of stock accumulation by investors, institutions and funds, which is also a record. The 50, 100 and 200 day moving averages have begun to point upward, a bullish sign. The relative strength indicator (RSI) has improved to 79 from as low as 32 as the stock corrected 50%, presented an opportunity for EV believers to accumulate shares cheaply. MACD went from an overbought condition in March to a long period of oversold condition between April and June, in which May was the extremely oversold month that brought the stock down to the 10.80 level where it found support, made a solid base, then began to move upward.
The weekly chart clearly shows KNDI is forming the right side of the cup with heavy volume, that indicates a potential breakout in the next few weeks after testing resistance area around $20-$22.50. If the breakout is successful with strong volume, KNDI could move into the uncharted territory containing no technical resistance, which could mean KNDI trading near $30 in just days. The upward movement could also be intensified with shorts get squeezed. Tesla stock experienced a similar breakout last year after the company reported strong sales volume, and Tesla Model S received praises from the media. That breakout, coupled with short squeeze action drove Tesla stocks up tenfold in less than six months.
(click to enlarge)
Kandi Technologies daily chart (Source: StockCharts.com)
(click to enlarge)
Kandi Technologies weekly chart (Source: StockCharts.com)
Microsoft Money shows Kandi's institutional and mutual funds/ETF ownership has increased to nearly 12%, with fresh new accumulation from Security Investors, LLC, Mizuho Securities USA Inc, First Trust ISE China Index Fund, and several PowerShares funds.
Conclusion
In 2008 the world entered the great recession. The U.S. Federal Reserve came to the rescue by several rounds of interest rate reduction and quantitative easing. Since mid 2009, U.S. economy has started to turn around, and the stock market has been going up ever since. Sadly a huge number of investors were continuously cashing out on their mutual funds and stocks during the last several years, therefore missing a huge gain from the bull market.
The mistake many investors made is now repeated with the emerging EV technologies. After the initial hurdles of lacking charging infrastructures coupled with slow consumers' acceptance and adoption of the new EV products, resulting in slow growth in the last few years; EV sales have now begun to pick up worldwide and will accelerate for many years to come. Nevertheless, EV companies like Tesla (NASDAQ:TSLA) and Kandi are among the most shorted stocks.
On July 10, chief economist Jun Ma in his keynote speech on green finance roundtable held in Guiyang suggested that China needs to establish a green investment policy system, and assist Chinese green transformation by investing $320 million per year into these projects.
Do not underestimate the China State and its local governments when they do all in their power to restrict traditional car purchases, pour trillions of dollars into NEV subsidies, provide tax exemption, enforce government procurement of EV, and build charging infrastructures. The EV movement has just begun, go with the flow, invest wisely, and profit greatly!
Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.
Source: Kandi Technologies Dominates China's Electric Car Market
Jul. 21, 2014 1:58 AM ET
Summary
- Chinese car companies sold a record 20,477 NEV in H1 2014, already exceeded last year sales of 17,642 NEV. Q2 sales of 13,624, doubled Q1 sales of 6,853.
- Kandi JV ended Q2 2014 with record 4,115 EV produced and 4,114 EV sold, its biggest quarter ever. Sales were 1,215 units in Q1, and 4,694 in all of 2013.
- Mini EV sales to hit 30,000 mark this year, accounted for 40% of China's NEV sales. Kandi is the leader in this market. It's just unveiled the new "Urban Beauty."
- Cash flow has increased substantially. Kandi received $31.8 million subsidy check from the Central government. Another Central subsidy check of $33.5 million is coming, plus a subsidy payment from Hangzhou.
- The China Central Government has just released NEV procurement mandate, just a few days after announcing 10% tax exemption for NEV purchased between September 1, 2014 through 2017.
My previous article gave readers a background of Kandi's transformation to an EV company, Kandi Technologies Group, Inc. (NASDAQ: KNDI) and Geely's (NASDAQ: OTCPK:OTCPK:GELYY) joint venture which yielded the successful CarShare and the group leasing programs. This article covers the latest exciting developments of Kandi JV and China.
Sequential Production Increase In Q2 2014
After a slow start, China's NEV production has accelerated. In 2013, 17,642 new energy vehicles were sold, a year-over-year increase of 37.9%. In the first six months of this year, Chinese car companies have sold a record 20,477 NEV. Q2 sales of 13,624 NEV, which doubled Q1 sales of 6,853.
Industry insiders estimate that with the NEV subsidy policies and purchase tax exemption, the full-year sales of NEV will exceed a record 50,000 units this year, representing a 200% increase year over year.
KNDI is the leader in the first half of this year of both EV production and sales. KNDI JV ended Q2 2014 with a bang, produced 4,115 EV and sold 4,114 EV to record its best quarter ever. In comparison, it sold 1,215 cars in Q1, and 4,694 cars in all of 2013.
Annual NEV Sales in China from domestic brands (Data from CAIA)
Kandi's New "Urban Beauty" Electric Car
On July 9, Kandi EV Group's first Supplier Conference was successfully held in Hangzhou's First World Hotel. The General Assembly to "seize the opportunity and create win-win" as the theme, more than 160 representatives of more than 200 vendors from across the country to participate.
During the conference, Kandi debuted the new EV called "Urban Beauty" which generated strong interest. The new two-door sporty car contains some of the most intelligent and technologically advanced features among leading domestic car producers.
KNDI reported in its most recent Form 10-Q that it's been working on the new EV model SMA7005BEV. Mr Hu also confirmed the company is working on new models based on the Panda platform. Since the Panda is a four-door electric sedan, the "Urban Beauty" does not appear to descend from the Panda, therefore the new EV model SMA7005BEV could be a new and different car.
China Securities News on July 11 posted KNDI is in cooperation with Alibaba(heck, this company is omnipresent
) to launch its electric car platform. The news suggested that the two companies developed a "hot and trendy" EV using this platform. No other details were disclosed. With Alibaba making headlines about its upcoming IPO in the U.S., this would indicate a lot of visibility for KNDI when they announce the co-operation detail.
The new Kandi's "Urban Beauty" mini EV (Source: D1EV.com)
The Mini Electric Vehicle Market Boom
Why Kandi is building another mini EV? Southern Wealth Network on July 15 summarized Kandi's coverage by Haitong Securities with the headline "Mini electric car barbaric growth." The report forecasts 30,000 mini EV sales this year, accounting for 40% of China's NEV sales. Next year, mini EV sales could exceed 100,000 units. Haitong reiterated "overweight" rating for Kandi stocks.
According to the report, the mini EV market is being born in the context of overweight subsidies, which provide lots of room for profits. At this stage, mini EV is in the interest of all parties to achieve a win-win situation. For consumers, cost-effective, attractive; for businesses, high consumer demands, good profit model and high rate of return; and for government, the successful achievement of EV targets.
Currently the main mini EV companies include Kandi JV, Zotye and Chery. Compared to conventional cars and traditional electric cars, mini EV attracts more consumers because it is cost-effective, practical and convenient. The mini EV market is vast, especially in the second and third tier cities and towns.
From the production and sales statistics in the first half of this year, mini EV has been in a leading position. Kandi has been the leader, followed by Zotye. Because mini EVs are extremely sensitive to the subsidy policies, as more and more local subsidies are announced, coupled with the purchase tax relief, mini EV sales are expected to accelerate in the second half. As production increases, the cost to build mini EV declines, which means increased earnings for mini EV companies.
In addition to an overweight rating by Haitong Securities, on July 2nd Kandi also received a second overweight recommendation by Bloomberg, Essence International suggesting that Kandi EV sales this year could exceed 12,500 units.
(click to enlarge)
Kandi's EV lineup (Source: Kandi and D1EV.com)
NEV Purchase Tax Exemption
Premier Li Keqiang on July 9 announced at the State Council executive meeting that the Central Government decided to exempt NEV purchase tax of 10% for vehicles purchased from September 1, 2014 until the end of 2017. The aim is to stimulate domestic demand for consumer purchases of NEV. The Orient Securities said it expects the introduction of the tax policy will ensure faster growth rate in NEV sales.
ChinaEV.org reported that the Chinese Central government has been studying tax relief policies since March, to bolster sales of new energy vehicle (NEV) after past incentives failed to spur high enough demand to meet set goals, said Vice Premier Ma Kai during his visit of New Energy Automobile Enterprises in Shenzhen.
Last year, the government offered subsidies totaling $4.25 billion to stimulate the purchase of NEVs.
New Central Government Vehicle Mandate
On July 13, China released a statement requiring that electric cars must make up at least 30 percent of government vehicle purchases by 2016, the latest measure to fight pollution and cut energy use. Central government ministries and agencies will take the lead on purchases of NEVs, and will be offered subsidies. President Xi Jinping urges government agencies to buy domestic brands.
Under the new guidance, the number of government vehicles shall not be less than 10% for 2014, 20% for 2015 and 30% for 2016. The ratio will be raised beyond 2016, when local provinces are required to meet the target. According to the Automobile Association Secretary General Dong Yang's forecast, this year government officials' NEV procurement will reach 30,000, approximately 60% of total NEV annual sales.
"The second half of this year, with the implementation of the national purchase tax incentives and government procurement of the NEV, sales of NEV will skyrocket." Said Ma Jing, Shanghai Municipal Commissioner at the Shanghai municipal government news conference.
The new rules also require government agencies to build charging stations and improve other infrastructure for green vehicles. The new guidance came just a few days after China scrapped a purchase tax for green vehicles, fearing that it had fallen far behind in meeting its target of putting 500,000 new-energy vehicles on the road by next year.
Proposed Charging Pile Subsidies
Zhengbao reporters on July 2nd disclosed the Central Government will soon introduce a new charging facility subsidy policy. Once the Central Government releases its charging pile subsidy terms and conditions, the number of charging facilities is expected to multiply, accelerating NEV sales further. Shanghai and other local governments have already launched the charging infrastructure subsidy programs while most of the country is still waiting for a central subsidy policy to be released.
The Central Government recognizes development of the NEV market requires charging facilities multiplication. CCID Consulting's latest report stated that in 2013 China's electric vehicle charging station industry reached $574 million, in 2016 it will reach $5.3 billion, a stunning increase of tenfold in just three years.
Hangzhou Subsidies
All eyes are on Hangzhou as it's finalizing the new subsidy policy. In August 2010, Hangzhou introduced a policy that subsidized up to $9,600 for individuals for NEV purchases. The policy expired at the end of December last year. The lack of the new policy has hurt the local auto industry, and the city government has been under tremendous pressure to release its updated policy. When the new policy is released, it will open the floodgate for EV sales and Kandi group leasing activities, and also means significant retroactive Hangzhou city subsidy checks will be mailed to EV companies. My last articlementioned Kandi JV has already delivered 6755 EV to Hangzhou CarShare project, this means a fat subsidy check will be in the mail to Kandi soon after the new subsidy policy is announced.
Meanwhile in Hangzhou, the chance of winning a car plate gets slimmer, down to 1.7 percent in July from 2.2 percent in June. Hangzhou holds a car plate auction and lottery every month to issue 80,000 plates a year. A total of 398,101 people have signed up for the July auction and lottery, about 80,000 more than June, while the number of car plates available for July is only 6,750. Hangzhou sold 7,091 car plates last month at an average price of $2,482 for individual buyers and $3,180 for institutional buyers.
Technical Analysis
Last week KNDI gapped up over the head-and-shoulder resistance level at 15, flirting with 52-week closing high before closing the week at 19.62. Weekly volume was a record. Weekly chart shows six continuous weeks of stock accumulation by investors, institutions and funds, which is also a record. The 50, 100 and 200 day moving averages have begun to point upward, a bullish sign. The relative strength indicator (RSI) has improved to 79 from as low as 32 as the stock corrected 50%, presented an opportunity for EV believers to accumulate shares cheaply. MACD went from an overbought condition in March to a long period of oversold condition between April and June, in which May was the extremely oversold month that brought the stock down to the 10.80 level where it found support, made a solid base, then began to move upward.
The weekly chart clearly shows KNDI is forming the right side of the cup with heavy volume, that indicates a potential breakout in the next few weeks after testing resistance area around $20-$22.50. If the breakout is successful with strong volume, KNDI could move into the uncharted territory containing no technical resistance, which could mean KNDI trading near $30 in just days. The upward movement could also be intensified with shorts get squeezed. Tesla stock experienced a similar breakout last year after the company reported strong sales volume, and Tesla Model S received praises from the media. That breakout, coupled with short squeeze action drove Tesla stocks up tenfold in less than six months.
(click to enlarge)
Kandi Technologies daily chart (Source: StockCharts.com)
(click to enlarge)
Kandi Technologies weekly chart (Source: StockCharts.com)
Microsoft Money shows Kandi's institutional and mutual funds/ETF ownership has increased to nearly 12%, with fresh new accumulation from Security Investors, LLC, Mizuho Securities USA Inc, First Trust ISE China Index Fund, and several PowerShares funds.
Conclusion
In 2008 the world entered the great recession. The U.S. Federal Reserve came to the rescue by several rounds of interest rate reduction and quantitative easing. Since mid 2009, U.S. economy has started to turn around, and the stock market has been going up ever since. Sadly a huge number of investors were continuously cashing out on their mutual funds and stocks during the last several years, therefore missing a huge gain from the bull market.
The mistake many investors made is now repeated with the emerging EV technologies. After the initial hurdles of lacking charging infrastructures coupled with slow consumers' acceptance and adoption of the new EV products, resulting in slow growth in the last few years; EV sales have now begun to pick up worldwide and will accelerate for many years to come. Nevertheless, EV companies like Tesla (NASDAQ:TSLA) and Kandi are among the most shorted stocks.
On July 10, chief economist Jun Ma in his keynote speech on green finance roundtable held in Guiyang suggested that China needs to establish a green investment policy system, and assist Chinese green transformation by investing $320 million per year into these projects.
Do not underestimate the China State and its local governments when they do all in their power to restrict traditional car purchases, pour trillions of dollars into NEV subsidies, provide tax exemption, enforce government procurement of EV, and build charging infrastructures. The EV movement has just begun, go with the flow, invest wisely, and profit greatly!
Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.
Source: Kandi Technologies Dominates China's Electric Car Market
cirr
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7/22/2014
2014 Forbes China Power Women List (Full List)
Here’s the full list of China’s 100 most powerful women as ranked in the June issue of Forbes China, the licensed Chinese-language edition of Forbes magazine. Click here for a related article and here for the full list in Chinese.
1. Sun Yafang, Huawei Investment & Holding, Chairman
2. Dong Mingzhu, Gree Electric Appliances, Chairman
3. Song Guangju, Poly Real Estate Group, Chairman
4. Wu Yajun, Longfor Properties, Chairman
5. Sun Yiping, Mengniu Dairy, CEO
6. Yang Huiyan, Country Garden, Vice Chairman
7. Wang Fengying, Great Wall Motor, General Manager
8. Zong Fuli, Wahaha, General Manager
9. Cheung Yan, Nine Dragons, Chairlady
10. Zhang Xin, SOHO China, CEO
11. Liu Chang, New Hope Liuhe, Chairman
12. Lucy Peng, Alibaba Group, Chief People Officer
13. Chen Chunhua, New Hope Liuhe, CEO
14. Zeng Jingxuan, Standard Chartered, Greater China Chairman
15. Yu Shumin, Hisense Electric, Chairman
16. Liu Bing, Beijing Wangfujing Department Store (Group), Chairman
17. He Qiaonv, Beijing Orient Landscape, Chairman
18. Zhou Junqing, China Resources Power Holdings, Chairman
19. Kathy Xu, Capital Today, President
20. Lin Weiping, Skyworth Digital Holdings, Chairman
21. Luo Yan, China CAMC Engineering, Chairman
22. Yang Huaizhen, Jiangsu Hiteker, Chairman
23. Chu Lam Yiu, Huabao International Holdings, Chairman
24. Lin Junbo, Xinhu Zhongbao, Chairman
25. Wu Huidi, Fengli Group, Chairman
26. Zhang Ronghua, Tianjin Rockcheck Investment Holding Group, General Manager
27. Zheng Jie, Chrysler (China), President and CEO
28. Wu Naifeng, Tasly Pharmaceutical Group, President
29. Zheng Xiaoyan, Hefei Department Store Group, Chairman
30. Feng Yali, Zhejiang Hailiang, Chairman
31. Li Xinxi, Baidu, CFO
32. Zhang Yafeng, Sealand Securities, Chairman
33. Wei Christianson, Morgan Stanley, Asia-Pacific CEO
34. Shen Aiqin, Wensli, Honorary Chairman
35. Wang Laichun, Luxshare Precision Industry, Chairman and CEO
36. Jing Ulrich, J.P. Morgan, Asia-Pacific Vice Chairman
37. Tu Hongyan, Wensli, Chairman
38. Luo Yan, China CAMC Engineering, Chairman
39. Xu Shuqing, Guangxi Wuzhou Zhongheng Group, Chairman
40. Zhang Lirong, Xinjiang Tianshan Cement, Chairman
41. Du Youqi, Zoomlion Heavy Industry Science & Technology, Senior President
42. Zhang Xiaofang, Bengang Steel Plates, Chairman
43. Zhou Qunfei, Lens Yechnology, Chairman
44. Wang Ai, Central China Land Media, Chairman
45. Zhang Hongxia, Weiqiao Textile, Chairman
46. Chen Ailian, Zhejiang Wanfeng Auto Wheel, Chairman
47. Poon Wai, Ajisen (China) Holdings, founder, Chairman and CEO
48. Zhou Yaxian, Shenguan Holdings (Group), Chairman
49. Cao Shiru, Chengdu Hongqi Chain, Chairman
50. Chen Suzhen, Swatch Group, China President
51. Zhan Lingzhi, Anhui Huamao Textile, Chairman
52. Yan Jin, Yeland Investment Group, President
53. Katty Lam, PepsiCo, Greater China President
54. Wu Liping, Huatian Hotel Group, Executive Director
55. Chak Meihing, Heung Kong Group, President
56. Mou Jinxiang, Lianhe Chemical Technology, Chairman
57. Chen Lingfen, Huafu Top Dyed Melange Yarn, President
58. Chen Lifen, Jiangsu Sunshine, Chairman
59. Li Yiqing, Wasu Media Holding, Chairman
60. Lu Yaxing, Zhongnan Group, Vice-General Manager
61. Ma Ronglu, Societe Generale (China), Chairman
62. Duan Xiaoying, GE Healthcare, CEO
63. Zhou Haiming, Shanghai Maling Aquarius, Chairman
64. Liu Wei, Giant Interactive Group, President
65. Yang Min, China Hanking Holdings, Chairman
66. Mou Jiayun, Chengdu Shindoo Chemical Industry, Chairman
67. Han Fangru, Qingdao East Steel, Chairman
68. Margaret Ren, Bank America Merrill Lynch China, Investment Banking
69. Jiang Jin, Chongqing Road and Bridge, Chairman
70. Wang Jili, Yantai Jereh Oilfield Services Group, Executive Director
71. Liao Jianing, Guangzhou Zhujiang Brewery, Executive Director and General Manager
72. Xu Shu, Beijing Kangde Xin Composite Material, President
73. Cecilia Ho, International Paper, Asia President
74. Liu Lianhong, Jiangsu Hongdou Industry, Chairman
75. Wu Bin, Xinjiang Tianye, Chairman
76. Li Linzhi, Wuhan Kaidi Eiectric Power, Chairman
77. Zhou Yifeng, Oriental Energy, Chairman
78. Ning Zhongwei, Anhui Golden Seed Winery, General Manager
79. Zhao Yifang, Zhejiang Huace Film and TV, General Manager
80. Li Hua, Chuying Agro-Pastoral Group, President
81. Liu Wenjing, Shandong Blue Sail Plastic and Rubber, Chairman
82. Liu Jingyu, Tianma Microelectronics, Executive Director and General Manager
83. Wang Aiping, Xi’an Kaiyuan Investment Group, Chairman
84. Wang Jingbo, Noah Wealth, CEO
85. Shen Jinhua, Lancy, Executive Director and General Manager
86. Chen Dongmei, Qiaqia Food, General Manager
87. Chen Ruiai, Guangdong Dahuanong Animal Health Products, General Manager
88. Wang Jia, Beijing Venustech Inc., Chairman
89. Zheng Guihua, Henan Rebecca Hair Products, General Manager
90. Zhao Wenhua, Guangdong Guangzhou Daily Media, General Manager
91. Tan Qiubin, Jiangsu Guotai International Group Guomao, Chairman
92. Wang Ping, Sundy Land Investment, President
93. Xu Hong, Beijing Huaye Realestate, Chairman
94. Zhang Xian, Songcheng Performance Development, President
95. Mao Lihua, Shandong Denghai Seeds, Chairman
96. Li Li, Masterwork Machinery, Chairman
97. Zhang Hong, Juli Sling, President
98. Li Manli, FSPG Hi-tech, Chairman
99. Xu Guifen, Jiangxi Huangshanghuang Group Food, Chairman
100. Wang Yinxi, Guangzhou Friendship Group, General Manager
– with Cherish Xiong
2014 Forbes China Power Women List (Full List) - Forbes
2014 Forbes China Power Women List (Full List)
Here’s the full list of China’s 100 most powerful women as ranked in the June issue of Forbes China, the licensed Chinese-language edition of Forbes magazine. Click here for a related article and here for the full list in Chinese.
1. Sun Yafang, Huawei Investment & Holding, Chairman
2. Dong Mingzhu, Gree Electric Appliances, Chairman
3. Song Guangju, Poly Real Estate Group, Chairman
4. Wu Yajun, Longfor Properties, Chairman
5. Sun Yiping, Mengniu Dairy, CEO
6. Yang Huiyan, Country Garden, Vice Chairman
7. Wang Fengying, Great Wall Motor, General Manager
8. Zong Fuli, Wahaha, General Manager
9. Cheung Yan, Nine Dragons, Chairlady
10. Zhang Xin, SOHO China, CEO
11. Liu Chang, New Hope Liuhe, Chairman
12. Lucy Peng, Alibaba Group, Chief People Officer
13. Chen Chunhua, New Hope Liuhe, CEO
14. Zeng Jingxuan, Standard Chartered, Greater China Chairman
15. Yu Shumin, Hisense Electric, Chairman
16. Liu Bing, Beijing Wangfujing Department Store (Group), Chairman
17. He Qiaonv, Beijing Orient Landscape, Chairman
18. Zhou Junqing, China Resources Power Holdings, Chairman
19. Kathy Xu, Capital Today, President
20. Lin Weiping, Skyworth Digital Holdings, Chairman
21. Luo Yan, China CAMC Engineering, Chairman
22. Yang Huaizhen, Jiangsu Hiteker, Chairman
23. Chu Lam Yiu, Huabao International Holdings, Chairman
24. Lin Junbo, Xinhu Zhongbao, Chairman
25. Wu Huidi, Fengli Group, Chairman
26. Zhang Ronghua, Tianjin Rockcheck Investment Holding Group, General Manager
27. Zheng Jie, Chrysler (China), President and CEO
28. Wu Naifeng, Tasly Pharmaceutical Group, President
29. Zheng Xiaoyan, Hefei Department Store Group, Chairman
30. Feng Yali, Zhejiang Hailiang, Chairman
31. Li Xinxi, Baidu, CFO
32. Zhang Yafeng, Sealand Securities, Chairman
33. Wei Christianson, Morgan Stanley, Asia-Pacific CEO
34. Shen Aiqin, Wensli, Honorary Chairman
35. Wang Laichun, Luxshare Precision Industry, Chairman and CEO
36. Jing Ulrich, J.P. Morgan, Asia-Pacific Vice Chairman
37. Tu Hongyan, Wensli, Chairman
38. Luo Yan, China CAMC Engineering, Chairman
39. Xu Shuqing, Guangxi Wuzhou Zhongheng Group, Chairman
40. Zhang Lirong, Xinjiang Tianshan Cement, Chairman
41. Du Youqi, Zoomlion Heavy Industry Science & Technology, Senior President
42. Zhang Xiaofang, Bengang Steel Plates, Chairman
43. Zhou Qunfei, Lens Yechnology, Chairman
44. Wang Ai, Central China Land Media, Chairman
45. Zhang Hongxia, Weiqiao Textile, Chairman
46. Chen Ailian, Zhejiang Wanfeng Auto Wheel, Chairman
47. Poon Wai, Ajisen (China) Holdings, founder, Chairman and CEO
48. Zhou Yaxian, Shenguan Holdings (Group), Chairman
49. Cao Shiru, Chengdu Hongqi Chain, Chairman
50. Chen Suzhen, Swatch Group, China President
51. Zhan Lingzhi, Anhui Huamao Textile, Chairman
52. Yan Jin, Yeland Investment Group, President
53. Katty Lam, PepsiCo, Greater China President
54. Wu Liping, Huatian Hotel Group, Executive Director
55. Chak Meihing, Heung Kong Group, President
56. Mou Jinxiang, Lianhe Chemical Technology, Chairman
57. Chen Lingfen, Huafu Top Dyed Melange Yarn, President
58. Chen Lifen, Jiangsu Sunshine, Chairman
59. Li Yiqing, Wasu Media Holding, Chairman
60. Lu Yaxing, Zhongnan Group, Vice-General Manager
61. Ma Ronglu, Societe Generale (China), Chairman
62. Duan Xiaoying, GE Healthcare, CEO
63. Zhou Haiming, Shanghai Maling Aquarius, Chairman
64. Liu Wei, Giant Interactive Group, President
65. Yang Min, China Hanking Holdings, Chairman
66. Mou Jiayun, Chengdu Shindoo Chemical Industry, Chairman
67. Han Fangru, Qingdao East Steel, Chairman
68. Margaret Ren, Bank America Merrill Lynch China, Investment Banking
69. Jiang Jin, Chongqing Road and Bridge, Chairman
70. Wang Jili, Yantai Jereh Oilfield Services Group, Executive Director
71. Liao Jianing, Guangzhou Zhujiang Brewery, Executive Director and General Manager
72. Xu Shu, Beijing Kangde Xin Composite Material, President
73. Cecilia Ho, International Paper, Asia President
74. Liu Lianhong, Jiangsu Hongdou Industry, Chairman
75. Wu Bin, Xinjiang Tianye, Chairman
76. Li Linzhi, Wuhan Kaidi Eiectric Power, Chairman
77. Zhou Yifeng, Oriental Energy, Chairman
78. Ning Zhongwei, Anhui Golden Seed Winery, General Manager
79. Zhao Yifang, Zhejiang Huace Film and TV, General Manager
80. Li Hua, Chuying Agro-Pastoral Group, President
81. Liu Wenjing, Shandong Blue Sail Plastic and Rubber, Chairman
82. Liu Jingyu, Tianma Microelectronics, Executive Director and General Manager
83. Wang Aiping, Xi’an Kaiyuan Investment Group, Chairman
84. Wang Jingbo, Noah Wealth, CEO
85. Shen Jinhua, Lancy, Executive Director and General Manager
86. Chen Dongmei, Qiaqia Food, General Manager
87. Chen Ruiai, Guangdong Dahuanong Animal Health Products, General Manager
88. Wang Jia, Beijing Venustech Inc., Chairman
89. Zheng Guihua, Henan Rebecca Hair Products, General Manager
90. Zhao Wenhua, Guangdong Guangzhou Daily Media, General Manager
91. Tan Qiubin, Jiangsu Guotai International Group Guomao, Chairman
92. Wang Ping, Sundy Land Investment, President
93. Xu Hong, Beijing Huaye Realestate, Chairman
94. Zhang Xian, Songcheng Performance Development, President
95. Mao Lihua, Shandong Denghai Seeds, Chairman
96. Li Li, Masterwork Machinery, Chairman
97. Zhang Hong, Juli Sling, President
98. Li Manli, FSPG Hi-tech, Chairman
99. Xu Guifen, Jiangxi Huangshanghuang Group Food, Chairman
100. Wang Yinxi, Guangzhou Friendship Group, General Manager
– with Cherish Xiong
2014 Forbes China Power Women List (Full List) - Forbes
mughal arslan shah mirza
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This is truly great to see. Amazing to see that women in China have achieved so much and are highly accomplished. Hope to see this progress continue in the future.
Last edited:
cirr
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Some of names on the list are still very young, For example, both No. 6 and No. 8 are in their early 30s，with the latter reportedly worth 80 billion yuan(13 billion USD).
mughal arslan shah mirza
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That's even better news.
I see Yang Huiyan is from Guangdong while Zong Fuli is from Hangzhou. It's even better to see that development is all-encompassing and neither age nor location is a big barrier (If we were to take factors like age and location).Hypersonicmissiles
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BEIJING - The Chinese central authorities on Tuesday unveiled a program to promote the integrated circuit (IC) industry by setting up a state-level leading group and special investment fund.
The "National Guideline for the Development and Promotion of the IC Industry," published by the State Council, was meant to stimulate the dynamism and creativity of IC companies and accelerate the pace at which China's IC industry catches up with international leaders.
The sector's development should be focused on design and manufacturing, and great efforts should be made to boost the IC packaging and testing industry and make breakthroughs in key equipment and materials, it said.
A state-level "leading group" consisting of high officials will be set up to enhance top-level design and mobilise resources to boost the sector, according to the guideline.
Secondly, a special national industry investment fund will be put in place to provide a platform for big companies, financial institutions and social capital to support the development of the IC industry.
Thirdly, financial support will be increased for the industry in the form of providing new credit products and financial services, encouraging IC companies to go public, issuing financing tools and developing insurance products for the sector.
More efforts will be made to implement preferential tax policies for the industry, increase the application of secure and reliable software and hardware, encourage firms to set up IC technological research institutions, and boost international cooperation.
The IC industry, as the core of the information technology (IT) sector, is a strategic, fundamental and pioneering one to support economic and social development and safe guard national security, said the guideline.
Speeding up the development of the IC industry is also of great strategic significance to transform China's economic development pattern, safeguard national security and boost national competitiveness, it added.
The news should come as a boon to the country's IT sector, especially the chip-making industry, which has been lagging far behind the world heavyweights.
China relies heavily on imported ICs, which are among the country's top four import categories in terms of value, along with oil, iron ore and LCD panels.
As its reliance on foreign oil and iron ore cannot be reversed overnight, China has been working hard to promote the other two industries.
It has become less reliant on LCD panel imports in recent years, as its two leading makers of the panels, BOE and TCL, have been making strides in innovation. However, IC products continue to be imported in massive quantities.
With China's smartphone market booming, the country imported $232.2 billion worth of ICs in 2013, up 34.6 percent year on year, according to customs authorities.
The figure was higher than the $219.6 billion worth of imported oil for the year, making IC top the list of imports, resulting in a trade deficit of $144.1 billion for the industry, which had been expanding for four years in a row.
The aim is to increase the sales revenue of China's IC industry to 350 billion yuan ($56.2 billion) by 2015, and to narrow the gap between Chinese and international levels in the sector by 2020, with its sales revenue growing 20 percent annually on average, according to the guideline.
By 2030, the main links in the IC industrial chain should reach the leading international level, it added.
The "National Guideline for the Development and Promotion of the IC Industry," published by the State Council, was meant to stimulate the dynamism and creativity of IC companies and accelerate the pace at which China's IC industry catches up with international leaders.
The sector's development should be focused on design and manufacturing, and great efforts should be made to boost the IC packaging and testing industry and make breakthroughs in key equipment and materials, it said.
A state-level "leading group" consisting of high officials will be set up to enhance top-level design and mobilise resources to boost the sector, according to the guideline.
Secondly, a special national industry investment fund will be put in place to provide a platform for big companies, financial institutions and social capital to support the development of the IC industry.
Thirdly, financial support will be increased for the industry in the form of providing new credit products and financial services, encouraging IC companies to go public, issuing financing tools and developing insurance products for the sector.
More efforts will be made to implement preferential tax policies for the industry, increase the application of secure and reliable software and hardware, encourage firms to set up IC technological research institutions, and boost international cooperation.
The IC industry, as the core of the information technology (IT) sector, is a strategic, fundamental and pioneering one to support economic and social development and safe guard national security, said the guideline.
Speeding up the development of the IC industry is also of great strategic significance to transform China's economic development pattern, safeguard national security and boost national competitiveness, it added.
The news should come as a boon to the country's IT sector, especially the chip-making industry, which has been lagging far behind the world heavyweights.
China relies heavily on imported ICs, which are among the country's top four import categories in terms of value, along with oil, iron ore and LCD panels.
As its reliance on foreign oil and iron ore cannot be reversed overnight, China has been working hard to promote the other two industries.
It has become less reliant on LCD panel imports in recent years, as its two leading makers of the panels, BOE and TCL, have been making strides in innovation. However, IC products continue to be imported in massive quantities.
With China's smartphone market booming, the country imported $232.2 billion worth of ICs in 2013, up 34.6 percent year on year, according to customs authorities.
The figure was higher than the $219.6 billion worth of imported oil for the year, making IC top the list of imports, resulting in a trade deficit of $144.1 billion for the industry, which had been expanding for four years in a row.
The aim is to increase the sales revenue of China's IC industry to 350 billion yuan ($56.2 billion) by 2015, and to narrow the gap between Chinese and international levels in the sector by 2020, with its sales revenue growing 20 percent annually on average, according to the guideline.
By 2030, the main links in the IC industrial chain should reach the leading international level, it added.
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