LOTUS ROOT: A staff member from Matou Lotus Root Cooperative in Linyi, east China's Shandong Province, showcases a new type of lotus root, which is as juicy as fruits (FANG DEHUA)

Alipay Backs Off

Alipay, China's largest third-party e-payment provider, announced on August 27 it will discontinue its still-nascent offline-payment service, a move widely perceived as a capitulation to its state-backed rival, China UnionPay.

While the company declined to elaborate on its reasons, industry observers believe Alipay's encroachment into the business of offline payments was eating away market share once firmly held by UnionPay, the country's largest bankcard association.

"Due to certain widely known reasons, Alipay will stop all offline point-of-sale services," the company said on its official micro-blog to announce the move.

In March, Alipay introduced its proprietary POS machine, which allowed couriers to track parcels and accept payments for online-ordered goods at the same time.

A small processing fee paid by consumers upon delivery was split with UnionPay, a banking consortium that runs the country's interbank network, as well as the bank providing the card.

But Alipay failed to address concerns from UnionPay, which has tightened third-party payment policies since July.

In a recent board meeting, UnionPay had urged banks to complete all online transactions and clearing through its own channels, indicating that third-party payment enterprises cannot skirt UnionPay to complete bank transactions.

JV Shopping Mall

A Chinese-Finnish invested shopping and leisure center opened for business in St. Petersburg, Russia, on August 23, marking a new milestone for Chinese investment in Russia's Baltic region.

The $187-million Pearl Plaza Shopping and Leisure Center is a joint venture between Chinese firm Shanghai Industrial Investment (Holding) Co. Ltd. and Finnish SRV Group. The 96,000-square-meter shopping center, which houses a supermarket, cinema and a range of other services and leisure activities, can accommodate 25,000 guests a day.

A group of Shanghai-based companies have also embarked on the Baltic Pearl project, a large-scale residential and business district in Russia's second largest city.

The planned project includes more than 1 million square meters of residential housing, as well as a comprehensive range of commercial and community facilities. Once completed, the complex is expected to house over 30,000 St. Petersburg residents and provide a plethora of shopping opportunities.