1 VOLKSWAGEN TO SPEND $50 BILLION ON ELECTRIC CAR 'OFFENSIVE' WWW.CNN.COM PUBLISHED:2018/11/19      2 HABITABILITY OF MONGOLIA UNDER THREAT FROM CLIMATE CHANGE WWW.ADELAIDENOW.COM.AU PUBLISHED:2018/11/19      3 THE SURPRISE FUEL FLOWS SPARKED BY A RAGING U.S.-CHINA TRADE WAR WWW.BLOOMBERG.COM PUBLISHED:2018/11/19      4 MONGOLIA’S COAL EXPORTS IN FIRST 10 MONTHS UP 10PC WWW.XINHUANET.COM PUBLISHED:2018/11/19      5 ABOUT 100 THOUSAND PASSENGERS PASSED THROUGH MONGOLIA-XINJIANG BORDER WWW.MONTSAME.MN PUBLISHED:2018/11/19      6 CHINA'S ‘ONE BELT, ONE ROAD’ GLOBAL INVESTMENT PLAN MAPPED OUT WWW.RT.COM PUBLISHED:2018/11/19      7 ASIA SUMMIT ENDS IN HISTORIC FAILURE WWW.CNN.COM PUBLISHED:2018/11/19      8 INAUGURATION OF SHERAB KYETSEL LING INSTITUTE WWW.DALAILAMA.COM PUBLISHED:2018/11/19      9 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      10 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      БНХАУ-ЫН ОЛОН УЛСЫН ИМПОРТЫН ҮЗЭСГЭЛЭН БНХАУ-ОХУ-ЫН БИЗНЕСИЙН ХАРИЛЦААГ ӨРГӨЖҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/19     АМЧАМ МОНГОЛ 2018 ОНЫ ЖИЛИЙН ТАЙЛАНГИЙН ХУРЛАА АМЖИЛТТАЙ ЗОХИОН БАЙГУУЛЛАА WWW.IKON.MN НИЙТЭЛСЭН:2018/11/19     ЗЭСИЙН ЗАХ ЗЭЭЛД ЦОЙЛУУЛАХ ХАРМАГТАЙ WWW.DNN.MN НИЙТЭЛСЭН:2018/11/19     ГАШУУНСУХАЙТ АВТО ЗАМ ХХК: БЯМБА ГАРАГТ ГАШУУНСУХАЙТ-ГАНЦМОД БООМТООР НҮҮРС ТЭЭВРИЙН 99 АВТОМАШИН НЭВТЭРСЭН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/19     НЭГ АЖИЛТАНД НОГДОХ ДНБ III УЛИРЛЫН БАЙДЛААР 3.7 САЯ ТӨГРӨГ БОЛЖ ӨСЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/19     ХЯТАДЫН ХЯЗГААРЛАЛТ $300-450 САЯЫГ ГАЦААНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/19     АЗЕРБАЙЖАН УЛС МАНАЙД ДАРС НИЙЛҮҮЛЭХЭЭР БОЛЛОО WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/19     ШУУДАН, ХАРИЛЦАА ХОЛБООНЫ САЛБАРЫН ОРЛОГО ОНЫ ЭХНИЙ 9 САРД 21.4 ХУВИАР ӨСӨВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/19     БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Nissan deal 'won't persuade others to invest' www.bbc.com

One of Japan's top business strategists says investment in the UK will be smaller following the Brexit vote - and he is advising companies to hold fire.
In an interview with BBC Newsnight, Kenichi Ohmae called the recent deal at Nissan's plant in Sunderland a "minor decision" involving one company.
"I don't think other companies will follow suit," he added.
Mr Ohmae advised Nissan to set up its main European plant in the UK in the early 1980s.
Last week, Nissan confirmed it will build both the new Qashqai and the X-Trail SUV at its Sunderland plant following government "support and assurances".
Prime Minister Theresa May described the announcement as "fantastic news", adding: "This vote of confidence shows Britain is open for business."
Nissan's decision is the first major development for the car industry since the Brexit vote and secures 7,000 jobs.
But Mr Ohmae questioned whether exports will continue from Sunderland in the same manner as before the EU referendum vote. "That's just a statement by the UK government. We will have to wait and see.
"It is true that Nissan have said they will continue producing the two types of models after Brexit, [but] that's a very, very minor one company decision. I don't think other companies will follow suit."
He said he believes Nissan is "a very special case".
In terms of his advice to companies, Mr Ohmae said: "We don't have enough information to make a prudent judgement. Therefore with the final picture of the UK uncertain, I will advise them to hold until the course is clear and until the conditions of Brexit are worked out - not only by what the UK government says, but what the European Union says."
"Until that final shape of the UK is clear, we will have to hold the investment decisions," he added.
Mr Ohmae said people in Japan were shocked by the UK's vote to leave the referendum. "We don't understand why British people voted for Brexit... [it was] completely a surprise to us - and probably to many in the United Kingdom."
He said he has concerns around the movement of people after the UK leaves the EU - particularly those with expertise and skills - and that those who voted to leave on the grounds that migrants are taking jobs are mistaken.
"The people's sentiment that immigrants have taken our jobs away - we just don't see that in the statistics and on the day employment scene."
"It's a shame that the parliament - which has decision-making ability - did not go back to the referendum. The parliament accepted the referendum which it didn't have to, according to our understanding of the legal constraints."
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Shell and BP beat forecasts as energy giants cut spending www.theguardian.com

The UK’s two oil “supermajors”, BP and Royal Dutch Shell, have outlined plans for a more frugal future to withstand stubbornly low oil prices as they beat profit expectations in the third quarter.
 
While both firms outperformed forecasts, Shell won greater plaudits from investors thanks to rapid progress on cutting costs and a hefty production boost from its £43bn takeover of gas specialist BG.
 
Shell’s underlying net profit for the three months to the end of September rose 18% to $2.8bn, beating analyst forecasts of $1.7bn.
 
Britain’s biggest company said its performance had improved after a disappointing second quarter as it cut costs following its takeover of BG Group in January.
 
Chief financial officer Simon Henry said the BG deal had “turbocharged” the company, helping increase production by 25% to 3.6m barrels per day (bpd) from 2.9m this time last year.
 
But the cost of the takeover, coupled with low oil prices, has seen the company’s debt balloon from $26.6bn last year to nearly $79bn, adding to pressure to reduce spending and sell assets.
 
Shell expects its capital investment to fall $25bn next year – at the lowest end of its $25bn to $30bn guidance range.
 
Henry pointed out that Shell is already being thrifty, with this year’s $29bn in capital investment some $18bn less than Shell and BG were spending as separate companies in 2014.
 
Oil companies around the world have cut spending severely to cope with a plunge in the oil price that has weighed on the industry for more than two years and that both companies said is unlikely to reverse this year.
 
Henry warned that continued retrenchment could include further job losses in the North Sea, where Shell has already cut 1,000 staff since 2014.
 
“I cannot rule out further changes in the number of jobs,” he said, adding that Shell was ready to sell North Sea assets but hadn’t received attractive offers.
 
The firm is in the process of selling 16 assets as part of a $30bn sale programme as it looks to bolster its balance sheet following the BG deal.
 
Shell’s chief executive, Ben van Beurden, stressed the need for caution despite the better-than-expected results, saying: “Lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain.”
 
Shell’s cost cuts and progress in integrating BG won approval from the markets, sending its shares up nearly 4% to £21.15.
 
But while BP beat expectations, investors were less impressed than they were with Shell and its stock fell 4.5% to £4.62.
 
Investors in both companies stand to receive a £2.5bn boost to their dividends from sterling’s weakness this year, according to Capita Dividend Monitor, which expects their combined payouts to be £18.6bn.
 
At BP, net profit almost halved to $933m in the third quarter from $1.8bn a year earlier, although the result was better than the average analyst forecast of $780m, according to Reuters.
 
The company blamed lower oil prices as well as higher costs for writing off exploration projects and cancelling rigs. BP scrapped plans to drill in Australia’s Great Australian Bight last month after commissioning a high-spec oil rig in Singapore.
 
Like Shell, BP is battening down the hatches for continued low oil prices, with capital spending due to be $16bn this year, $1bn less than predicted in April.
 
The company has largely worked through the costs of its Gulf of Mexico oil spill but added $189m to its overall bill, which has now reached $61.8bn since the incident in April 2010.
 
Both companies’ shares have been under pressure as the oil price hovers at about $50 a barrel and rising doubts about Opec’s ability to organise a promised production cut.
 
But Shell’s finance chief Simon Henry said the efforts to slash costs will put it in “very strong cash generating territory” if prices rise again.
 
He said every $10 rise in the price of Brent crude was worth $5bn to Shell and would be worth $6bn within years, signalling huge rewards if oil prices eventually reach $100 again. “That’s another $30bn in the bank each year,” he said.
 
Energy industry commentators have pointed to the falling cost of renewables versus fossil fuels and Shell’s head of new energies and integrate gas, Maarten Wetselaar, said solar and wind were already undercutting gas in some areas.
 
He said solar panels were “equivalent or cheaper than fully costed gas” in areas near the equator when stripping out the cost of period with limited sunshine.
 
He said the same was true of wind power in the North Sea, although he stressed that gas still has an advantage when windless days are factored in.
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Russia signs China helicopter deal www.rt.com

 
Russian Helicopters has announced plans to sell 18 new helicopters to China, including Mi-171s, Ka-32s and Ansat.
 
“Chinese Wuhan Rand Aviation Technology Service has ordered two light Ansat medevac helicopters, two Mi-171s and one Ka-32 with an option for another 13 aircraft,” Russian Helicopters said on Tuesday after signing a contract with the Chinese buyer at the Airshow China 2016.
 
The first helicopters will be delivered next year and the rest by the end of 2018.
 
“At the moment there are more than 300 Russian helicopters of various types in China. We hope to attract interest from Chinese airlines with this first contract for Ansat helicopters," said Alexander Mikheev, the CEO of Russian Helicopters.
 
The multi-purpose Ansat light helicopter can be used for a wide range of roles, transporting cargo and passengers, for surveillance, search and rescue operations, fire-fighting, and medevac missions.
 
Kamov Ka-32 helicopters have been used in China for some time to fight fires and rescue operations. They are considered one of the best to deal with complex fire, particularly in the Chinese highlands and modern cities.
 
China has flown Mi-171 helicopters for disaster relief work, as well as transporting cargoes including medical supplies, and construction materials.
 
According to Mikheev, Moscow and Beijing are planning to sign a contract to design a heavy-lift helicopter within the next couple of months. They have a basic agreement and are currently working out the timescale and costs, he said.
 
The new helicopter is designed to lift 15 tons, with a range of 630 kilometers flying at 300 kilometers per hour.
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BOJ pushes back 2% inflation target date www3.nhk.or.jp

Japan's central bank has decided to maintain its monetary easing measures, including the negative interest rate policy.
 
But policymakers at a 2-day meeting that ended on Tuesday revised the timeframe for hitting the bank's inflation target. They pushed it back by about one year.
 
The Bank of Japan released its quarterly outlook report on the economy. Updated projections for meeting the 2 percent inflation goal say it will be sometime around the fiscal year beginning April 2018.
 
The previous forecast was for during fiscal 2017.
 
It is understood the bank thought it difficult to reach the target during Governor Haruhiko Kuroda's current term, which ends in April 2018.
 
Policymakers also trimmed their inflation forecast for fiscal 2016 to a negative. They think it will be minus 0.1 percent, 0.2 percentage point lower than their previous estimate.
 
For fiscal 2017, they're seeing 1.5 percent inflation, 0.2 point lower than before. The changes are due to lower crude oil prices, sluggish personal consumption, and a higher yen.
 
The BOJ first set the 2 percent inflation target in April 2013, when they committed to achieving it in about 2 years. Policymakers have cut their outlook for hitting the goal 5 times since then.
 
BOJ Governor Haruhiko Kuroda spoke to reporters after the meeting.
 
He said that there is no special relation between his term as BOJ Governor and the inflation forecast.
 
He also said that the BOJ will make an appropriate decision and implement it to realize a 2 percent inflation target as soon as possible.
 
Kuroda said the momentum toward achieving the price stability target is somewhat weaker than before and that he wants to keep a careful eye on developments in prices.
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Renewables beat coal as largest source of power capacity www.mining.com

While coal continues to crank out electricity for millions of people in developing nations, renewable energy is rapidly catching up and last year, overtook coal as the world's largest source of installed power capacity.
 
About half a million solar panels were installed every day last year and two wind turbines went up ever hour in 2015 – which may be seen as a turning point for renewables, led by solar power and wind. The astonishing figures come via the International Energy Agency (IEA), which in a recent report, raised its renewable growth forecast.
 
In 2015 over half of new power capacity came from renewable energy – reaching 153 gigawatts, or 15% more than last year. The amount of solar and wind added in 2015 were both record-setting; PV additions reached 49 GW and wind achieved 66 GW.
 
"‌There are many factors behind this remarkable achievement: more competition, enhanced policy support in key markets, and technology improvements. While climate change mitigation is a powerful driver for renewables, it is not the only one. In many countries, cutting deadly air pollution and diversifying energy supplies to improve energy security play an equally strong role in growing low-carbon energy sources, especially in emerging Asia," states the latest edition of the IEA’s Medium-Term Renewable Market Report.
 
The 153 GW of installed green energy was more than the total power capacity of Canada and greater than the amount of conventional fossil fuel or nuclear power added in 2015. While renewables surpassed coal in their cumulative share of power capacity, they have not yet knocked fossil fuels from the top of the heap when it comes to electricity generation. That's because renewables, due to their intermittency, cannot produce power at the same constant level as coal or nuclear.
 
According to the IEA in 2015 coal power plants produced close to 39% of the world's power while renewables, including hydroelectric dams, accounted for 23%. However the IEA expects that number to climb to 28% by 2021, when renewables will supply the equivalent of all the power produced currently in the US and the EU combined.
 
The IEA now sees renewables growing 13% more between 2015 and 2021 than it did in last year’s forecast, due mostly to "stronger policy backing in the United States, China, India and Mexico." The costs of installing solar and wind have dropped, and expected to drop considerably – 25% less for PV solar and a decrease of 15% for onshore wind, for the forecasted period, according to the agency.
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MRJ delivery may be late again www3.nhk.or.jp

The first delivery of the Japanese-made Mitsubishi Regional Jet, or MRJ, may be delayed again because technical changes are necessary.
 
The aircraft, currently undergoing flight tests in the United States, is being developed by Mitsubishi Aircraft. It has already announced delays 4 times.
 
The president of the parent company Mitsubishi Heavy Industries, Shunichi Miyanaga, cited a possible 5th delivery delay at a news conference.
 
He said various changes became necessary in order to acquire approval from aviation authorities.
 
Miyanaga said he wants to keep the schedule to make the first delivery by mid-2018 but he has the responsibility to explain the current situation to clients.
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New panel on Japan, Russian economic cooperation www3.nhk.or.jp

NHK has learned the Japanese government has decided to set up a high-level task force on economic cooperation with Russia.
 
The decision comes ahead of a bilateral meeting between Prime Minister Shinzo Abe and Russian President Vladimir Putin, scheduled for December.
 
The plan is for government officials and private-sector experts to flesh out the details of an 8-point plan proposed by Japan.
 
The package covers energy development and industrial cooperation between the 2 countries, and is aimed at improving the lives of Russian people.
 
The task force is to be co-chaired by Japan's Trade and Industry Minister, Hiroshige Seko, and Russia's Economic Development Minister, Alexei Ulyukayev.
 
Russian officials are requesting 68 items, including the building of infrastructure including harbors and airports in the country's Far East. They are also calling for the construction of hospitals and laying of undersea cables to send electricity to Japan.
 
Japanese officials say the task force plans to hold its first meeting when Seko visits Russia in early November. The agenda will include loans to Russian banks from lenders backed by the Japanese government.
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Australia's fresh milk taking direct flights to China www.chinadaily.com.cn

China's quest for higher-quality food is taking a big swing to the south. In fact, 5,300 miles (8,500 kilometers) down to Tasmania, the dairy-hungry nation's newest source of fresh milk.
 
Businessman Lu Xianfeng plans to begin early next year flying fresh milk to his home city of Ningbo, in eastern China, from the island state where he owns Australia's largest dairy operation.
 
Lu's Moon Lake Investments Pty bought the 191-year-old Van Diemen's Land Co for A$280 million ($214 million) in March, giving him access to 25 dairy farms and enough milk to fill an Olympic-size swimming pool every nine days.
 
A share of that will be flown to Ningbo every week, Sean Shwe, Moon Lake's managing director, said in Hobart, where the China-bound bulk deliveries will depart.
 
While countries as far away as the Czech Republic and Chile sell milk to China, Moon Lake is counting on gaining an edge with milk from Tasmania's far northwest coast which boasts "the cleanest air in the world".
 
The volume of milk shipments to the world's most-populous nation has jumped an average of 126 percent a year since 2010, creating a $333 million market dominated by the European Union, according to Chinese customs data.
 
Chinese consumers, ruffled by past food scandals, see imported milk as a safer alternative to domestic supplies, the US Department of Agriculture said in May.
 
Moon Lake has already forward-sold more than 15 million yuan ($2.2 million) of milk from its Van Diemen's Land dairies, which it calls VDL Farms.
 
"This is an exciting venture for our company, VDL Farms and potentially for all Tasmanian producers of fresh, perishable produce such as seafood, fruit and vegetables," Shwe said in a statement.
 
About 10 million liters of milk a year from VDL dairies will be trucked to Hobart for processing by Lion Dairy and packaged under the "VAN Milk" brand, a nod to the dairy operation's ties to Van Diemen's Land Co, according to the statement.
 
Moon Lake is in advanced talks with airlines and airports to begin weekly round trips from Hobart to Ningbo starting in the first quarter of 2017, with a view to increasing the frequency to two-to-three times a week in a year, and adding Beijing as a destination, the company said.
 
The new air freight route will mark the return of international departures from Hobart International Airport after a regular passenger service to Christchurch, New Zealand, was canceled in the 1980s.
 
Initially, fresh milk will be sold in 1-liter and 600-millimeter cartons, with plans to add yogurt and other dairy products, Moon Lake said in the statement.
 
"It is great for VDL and the Northwest Coast community as it moves the farms from ones that previously just produced milk and watched it leave through the farm gate, to ones that now produce a high-quality, value-added export product, giving them more security and certainty about prices," Shwe said.
 
The milk exports will be a boost for Tasmania, Australia's smallest and least-populated state, where an unemployment rate of 6.5 percent lags the national rate of 5.6 percent, and its citizens are more dependent on welfare than in any other state.
 
"VAN Milk" will represent the first sale to China of Tasmanian milk by a wholly owned Chinese company. Having direct stakes in food-producing companies gives Chinese firms an advantage over Australian competitors when it comes to selling into China, according to Michael Harvey, a senior dairy analyst with Rabobank International in Melbourne.
 
"The advantage is being able to navigate some of the complexities in the market," he said. Milk from Down Under "is held in high regard, so there is a strategic priority in China to source the product from Australia", he said.
 
After Germany, Australia is China's biggest supplier of liquid milk, including UHT products, shipping 61,184 metric tons of the product, worth A$62 million, last year, Chinese customs data showed.
 
China's dairy farms are located mostly in the country's central and northern areas, where the climate is more suitable for raising cattle. Weak cold chain logistics have made it difficult to ensure the milk's freshness when it reaches major markets in northeastern and southern China.
 
On top of that, the discovery of contaminants from melamine to mercury have made Chinese consumers wary of the local product.
 
That's slowed the increase in milk consumption in China, which averages about 33 kilograms per person a year-less than a third of the global mean, according to the USDA, which said in May that "milk consumption has plenty of growth potential".
 
Moon Lake said it plans to increase milk production at its VDL Farms by 80 percent within five years. VDL currently produces 7.66 million kilograms of milk solids a year from about 30,000 cows, which graze on 7,000 hectares.
 
Once "VAN Milk" is established in Ningbo and Beijing, Moon Lake wants to take it to Shanghai, Hangzhou and other Chinese cities. Moon Lake's owner Lu, 46, is also executive chairman and the largest shareholder of Ningbo Xianfeng New Material Co, a builder of sunscreen fabrics and shades.
 
"We've chosen Beijing and Ningbo for the initial marketing push because Ningbo is Lu's hometown and he has established networks to sell the product," Shwe said.
 
"Also, the city has among China's highest average incomes and is less saturated with Western products than, say, Shanghai," Shwe added.
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Anbang offers $11b funding for Chinese business in Europe www.chinadaily.com.cn

Chinese insurer Anbang Insurance Group Co Ltd on Monday unveiled a three-year loan program that will offer a total of 10 billion euros ($10.97 billion) to help Chinese startups and smaller companies to do business in Europe.
 
The plan was announced by Anbang chairman Wu Xiaohui at the China-Belgium Economic Forum in Beijing. The loan will be extended through Anbang's banking subsidiary Bank Nagelmackers in Belgium.
 
The loan program is part of Anbang's response to a Chinese government call for greater support for local small business, which have faced growing difficulties in gaining access to capital amid the economic slowdown.
 
The program will also allow Anbang to gain a higher yield from its investments as insurers cope with more pressure on their investment returns, amid the low interest rate environment in Europe.
 
Under the program, each individual entrepreneur will get a maximum 1 million euro loan. So far 10 Chinese business owners have been approved for the financing, Wu said.
 
The loan project also highlighted Anbang's commitment in the European market after its acquisition of Belgian insurer Fidea NV and Delta Lloyd Bank Belgium, later rebranded as Bank Nagelmackers, in 2014.
 
Best known for its high-profile purchase of New York's famed Waldorf Astoria hotel, Anbang has been the biggest Chinese investor in Belgium. Anbang said its presence in that country also reflects the potential for bilateral trade and investment between China and Belgium.
 
"Low interest rates in Europe and China's labor cost advantage will create huge market potential that will be win-win for both Chinese and Belgian companies," Wu told the forum.
 
Belgian Prime Minister Charles Michel, who has just wrapped up a two-day visit to China, attended the economic forum on Monday and vowed to attract more Chinese investment.
 
Michel said that Belgium would serve as a springboard for pan-European development for Chinese investors.
 
The country's international talent pool and competitive real estate market would also make it an attractive investment destination, he added.
 
"We have seen many good examples of Chinese investment in Belgium. Anbang is an investment success story for the Chinese in Belgium. We can do more and do better," Michel said.
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Alibaba boosts entertainment business with 10 billion yuan fund www.reuters.com

In a major reorganization of the company's entertainment assets, Alibaba Holdings Group Ltd. (BABA.N) has announced the formation of a new digital media group along with plans for a 10 billion yuan ($1.48 billion) fund for new projects.
 
The move marks a total consolidation of Alibaba's media businesses, including Youku Tudou Inc., UCWeb Inc. and Alibaba Pictures Group Ltd.(1060.HK) as well as the company's sports, games, literature, music and digital entertainment divisions.
 
Yu Yongfu, former CEO of UCWeb, will become the chairman and CEO of the newly formed Alibaba Digital Media and Entertainment Group, reporting directly to Alibaba CEO Daniel Zhang.
 
Youku Tudou chairman and CEO Victor Koo will chair the Alibaba Digital Media and Entertainment Strategy and Investment Committee, which will oversee the management of the planned fund for the new digital media group, which an Alibaba spokeswoman confirmed will be over 10 billion yuan.
 
The company declined to mention specific investment projects, saying that the funds will be used across their digital media and entertainment businesses.
 
Alibaba Pictures, the only publicly listed company under the new entity, has already undergone a series of consolidations, including the recent addition of online ticketing service Tao Piao Piao.
 
The entertainment company also recently entered an agreement with Steven Spielberg's Amblin Pictures, agreeing to co-produce and finance films.
 
Youku Tudou, which is approaching its tenth anniversary in December, was fully acquired by Alibaba in October last year as part of a $3.5 billion deal that took the company private.
 
Yu will retain his previous titles as president of AutoNavi and president of Alibaba Mobile Business Group, both Alibaba subsidiaries.
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