News
7/31/2007

China Again Increases Reserve Ratio__Wall Street Journal
China's central bank, continuing its modest tightening of credit, again moved to restrict lending by requiring banks to hold more funds in reserve.

China Everbright Securities Plans Listing for Early Next Year__Wall Street Journal
China Everbright Securities Co. said it plans to complete an initial public offering in the first quarter of next year, joining a raft of Chinese brokerages aiming to list shares.

Tyson Continues Exports to China Despite Ban Talk__Wall Street Journal
Tyson said it continues to do business with China, terming "inaccurate" recent reports that the country had suspended imports from the meat processor. Meanwhile, the company reported a profit on price increases and higher sales.

Paulson says China needs broader reforms__Financial Times
Currency policy is just one part of broader economic reforms that Beijing must undertake to maintain growth and competitiveness, Hank Paulson, US Treasury secretary, said.

Alibaba and ITAT forge ahead with IPOs__Financial Times
Chinese companies appear undeterred by global credit concerns as several forge ahead with plans for listings in Hong Kong.



7/30/2007

Rural China's TV Habits Have Marketers Tuned In__Wall Street Journal
Market researchers are beginning to track the TV-viewing habits in China's vast interior as economic ripples from the country's booming cities create wealthier rural consumers -- and draw attention from companies and their ad agencies.

Berkshire Hathaway Trims PetroChina Stake__Wall Street Journal
Berkshire Hathaway trimmed its PetroChina stake. Most analysts believe Buffet's investment vehicle was locking in profit, rather than bowing to criticism over PetroChina's financial links to Sudan.

China Toughens Stance On Food and Drug Safety__Wall Street Journal
China's premier ordered increased vigilance over food and drug safety as the Cabinet announced a new regulation that mandates stronger supervision and outlines hefty punishments for makers of dangerous goods.

China’s IPO ‘gap’ soars to $25bn__Financial Times
Companies that have listed on the mainland Chinese market have left almost $25bn ‘on the table’ over the past year, underlining the yawning gap between the pricing of public offerings and frenzied investor demand.

Chinese carmakers moot merger__Financial Times
SAIC has signed a memorandum of understanding with the parent of rival Nanjing Automobile in which the companies will discuss ‘all-round’ co-operation and a possible merger of their auto operations.

 


7/27/2007

China's Students Delve Into Stocks__Wall Street Journal
China's raging stock market is luring students looking to see how their textbook teachings fare in real life. But while this may lead to valuable investment experience, it may also be putting family assets at risk.

A Thumbs-Up for China__Wall Street Journal
Major ratings agencies gave China's economic and fiscal performance a thumbs-up Thursday, with Moody's Investors Service upgrading Chinese and Hong Kong government debt and Standard & Poor's Ratings Services signaling it may do the same in coming months.

ADB Increases Growth Forecast For East Asia__Wall Street Journal
The Asian Development Bank raised its forecast for economic growth in emerging East Asia this year.

Lenovo Looks to Expand Global Reach__Wall Street Journal
Lenovo is investing $30 million in new plants in India and Mexico as it seeks to compete with H-P and Dell outside of China.

East Asia faces carry trade risk__Financial Times
East Asia’s financial markets are vulnerable to a sudden unwinding of yen carry trades and withdrawal of the capital that has lifted many of the region’s currencies.


7/26/2007

China Allows Its Insurers To Invest in Overseas Stocks__Wall Street Journal
The government widened the scope of investments by Chinese insurers to include overseas stocks for the first time, a move aimed at pushing more capital abroad.

China Encourages Venture Capital __Wall Street Journal
China's government is changing rules on foreign firms establishing domestic venture-capital funds, a move that could encourage more foreign venture capital to set up local units to tap the Chinese market.

Shanghai Property Back in Vogue__Wall Street Journal
A government clampdown on construction of luxury apartments is combining with loose enforcement of limits on property investment by foreigners to send Shanghai property prices sharply higher after two years of stagnancy.

Air China profits rise 2,000%__Financial Times
Air China aid profits soared in the first half due to the strengthening Chinese currency, investment gains and a booming travel market.

Beijing pressed to raise power prices__Financial Times
Chinese refiners and power companies are pushing the government to raise retail oil product and electricity prices, officials and state media said, though this may push inflation higher.

Private equity firms make China home__Financial Times
Bucking the overall trend in Asia, fundraising for private equity in China more than doubled to $5.26bn as equity managers struggle to put their money to work.



7/23/2007

Why China's CNPC Got Cold Feet Over Hot Argentine Oil Prospect __Wall Street Journal
International oil companies are finding it harder to bring more production on stream, as the majority of the world's reserves are either controlled by the national oil companies of the Middle East or extremely expensive to develop.

China Shuts Down Several Firms Involved In Food and Drug Scares__Wall Street Journal
China said Friday it had shut down several firms at the heart of food and drug safety scares, its latest move to clean up those industries and salvage its reputation as a reliable exporter.

Hong Kong May Extend Trade__Wall Street Journal
The Hong Kong stock exchange plans to introduce a 10-minute auction session to calculate the closing prices of stocks from February, the exchange's operator said Friday.

Barclays raises offer with Asian backing__Financial Times 
Britain’s Barclays has raised its offer for ABN AMRO to $93bn and included a cash element after getting equity backing from China Development Bank and Temasek

China oil braves hostile terrain in Somalia__Financial Times 
CNOOC’s willingness to strike an oil deal with the fragile government of Somalia has provided stark evidence of China’s willingness to brave terrain that western oil majors deem too treacherous



7/20/2007

China Growth Revs Faster, Escalating Policy Pressure
The unexpected acceleration of China's economy -- which is now on pace for its fastest annual growth in more than a decade -- is raising the risk of overheating at a time when the nation's leaders are occupied with a major political shuffle.

Pickens Pushes Natural Gas in China As Beijing Attempts to Cut Pollution
Oil investor T. Boone Pickens is looking to set up a chain of retail natural-gas fueling stations in China with a local partner.

China Minsheng to Revive Hong Kong IPO
China Minsheng Banking Corp. plans soon to restart efforts to list shares in Hong Kong, the bank's president said.

Beijing revokes business licences
China has closed three of the companies at the heart of the recent product safety scandals, in the latest move by Beijing to try to regain confidence on the quality of its consumer goods.



7/19/2007

J.P. Morgan Shifts Key Banker To Beijing from Post in London __Wall Street Journal
J.P. Morgan Chase & Co. is transferring a senior London-based banker to Beijing, where it is hoping to win approval to set up a locally incorporated bank that would give it access to China's potentially lucrative banking market, people familiar with the matter say.

Honda to Create Brand for China Market __Wall Street Journal
Honda said it will start selling cars with partner Guangzhou Auto under a new brand in 2010, becoming the first foreign auto maker to develop an original brand in China.

SEC Plans Suit Against Dow Jones Director __Wall Street Journal
The Securities and Exchange Commission intends to file civil charges against a Dow Jones & Co. board member in connection with an unfolding insider-trading case, according to people familiar with the matter.

GDP fuels concerns China overheating__Financial Times 
Economic growth surged to 11.9 per cent in the second quarter while inflation hit 4.4 per cent in June, despite a series of government tightening measures the past year

US sets up import safety panel__Financial Times 
The White House ordered the formation of an import safety panel to review strategy in the wake of a series of consumer and food product scares that have raised concerns over the safety of products from China



7/18/2007

Foreign buyers squeezed out of China__Financial Times 
Foreign companies are struggling to complete takeovers in China and are being forced to pay more than local bidders, leaving Chinese buyers to drive the growth in the country’s mergers and acquisitions activity, according to a report

Slow march to pension progress__Financial Times 
China’s rapidly ageing population has thrown up investment opportunities for foreign investment management groups thanks to the surge in local stockmarkets.

Viewpoint: Equity moves mainland__Financial Times 
Regulatory developments have frustrated the “round-trip” investment structure and private equity investors are shifting onshore, writes Terence Foo of Clifford Chance.

China's $200 Billion Bond Sale Portends Local and Global Shift __Wall Street Journal
Beijing's massive planned bond offering has wide ramifications. Issuance could weigh on domestic share prices, underpin yuan interest rates, and even cause ripples in parts of the global financial system, analysts say.

China's Lenovo to Base Its Global Ad Hub in India __Wall Street Journal
Lenovo plans to centralize its global advertising operations in Bangalore, amid a move by multinational companies to tap the creative firepower of India's low-cost work force.

Beijing Again Trims U.S. Holdings __Wall Street Journal
Non-Americans sharply increased their buying of long-term U.S. securities in May, as appetite for corporate bonds and stocks surged.



7/17/2007

UBS to help manage PetroChina IPO__Financial Times 
PetroChina, China’s largest oil and gas group, has chosen UBS to help raise up to $6bn in what is poised to be one of the biggest listings on the country’s mainland market

US asks China to lift meat import ban__Financial Times
The US asked China to lift import restrictions against most of the US meat processing plants cited in a Chinese announcement over the weekend more than a week before the action was made public

China's GDP Poised To Top Germany's As Power Shift Speeds Up__Wall Street Journal
China is on track to leapfrog Germany as the third-largest national economy in GDP terms, adding to anxieties in wealthy nations about China's rise.

Beijing Confident Growth Factors Are Under Control __Wall Street Journal
A range of measures, including interest-rate increases, the planned issuance of special bonds and raising the reserve ratio for banks, will help control growth in the money supply and in investment, China's foreign-exchange regulator said.

China Eases Insurer Caps__Wall Street Journal
China's insurance regulator has doubled the share of assets insurance companies can invest in yuan-denominated stocks, creating conditions that could allow more capital into China's stock market as prices for domestic shares cool from recent peaks.

Revaluing the Yuan May Not Fix Imbalances__Wall Street Journal
A revaluation of the Chinese yuan might not work as a catalyst for appreciation of other Asian currencies and aid the correction of global imbalances as some would hope, a Bank of England working paper released yesterday found.



7/16/2007

China Is Urged To Invest More In Ginnie Mae__Wall Street Journal
The U.S. housing chief encouraged China to increase its investments in mortgage-backed securities in the U.S., especially Ginnie Mae securities, which are fully backed by the U.S. government.

London Hedge Fund Turns to Asia__Wall Street Journal
Best-known for taking large stakes in small but fast-growing energy and mining companies, hedge-fund operator RAB Capital PLC is looking to build its reputation in another burgeoning area: Asia.

Safety Becomes a Hot Trade Issue__Wall Street Journal
Safety and quality are more often replacing tariffs and quotas as the focus of trade spats, as recent disputes between China and other nations show.

China seeks Turkmenistan gas__Financial Times
A new pipeline to carry natural gas from Turkmenistan to China is expected to top the agenda during talks between the two countries’ presidents in Beijing

Somalia oil deal for China__Financial Times
The Chinese state oil giant, CNOOC, has won permission to search for oil in part of Somalia, underlining China’s willingness to brave Africa’s most volatile regions in its hunt for natural resources


7/13/2007

Beijing Issue Daily Reports On Food Safety__Wall Street Journal
China said a daily food-safety reporting system will go into effect next month during test events for the Olympics.

Why Asian Investment Shift Looms__Wall Street Journal
Asian central banks' foreign reserves rose in June to $3.52 trillion, compared with $2.92 trillion a year earlier.

LSE Pitches a New Market to Funds __Wall Street Journal
In a further effort to woo hedge-fund companies and other alternative-asset managers to list funds in London instead of Amsterdam, the London Stock Exchange Group PLC said it will launch a dedicated market for them.

US warns China over export safety __Financial Times
The Bush administration has told Beijing to step up efforts to ensure the safety of its exports after a spate of product recalls and food scares

Chinese blogger held over stock tips__Financial Times
China’s proliferation of unregulated investment advice companies and private “hedge funds” could be under threat after the arrest of a blogger whose online stock tips made his site one of the country’s most popular

Goldman executive hits China barrier __Financial Times
Goldman Sachs has been unable to appoint its preferred chief executive at its Beijing joint venture because his Chinese language skills are not sufficient to pass a mandatory financial knowledge test

China bans toothpaste chemical__Financial Times
China has given in to international pressure and banned use in toothpaste of a potentially toxic industrial chemical


7/12/2007

Danone Claim Seeks to Win Wahaha Trademark in China __Wall Street Journal
France's Groupe Danone SA said its Chinese joint venture with Hangzhou Wahaha Group Co. has filed a counterclaim against Hangzhou Wahaha to the Hangzhou Arbitration Commission in an effort to secure ownership of Wahaha trademarks.

As Currency Reserves Swell, Asian Investment Shift Looms__Wall Street Journal
Asian central banks' foreign reserves rose in June to $3.52 trillion, compared with $2.92 trillion a year earlier.

China Takes Aim at Illegal Foreign-Fund flows__Wall Street Journal
China aims to stop illegal fund flows into the country via trade channels, its foreign-exchange regulator said.

Beijing closes online newsletter for NGOs__Financial Times
Beijing has shut down an online newsletter that reported on environmental and social issues for non-governmental organisations and international development agencies, the publication’s British founder said

SEC plans hedge fund anti-fraud regulation__Financial Times
Hedge funds were faced with a new anti-fraud rule as the Securities and Exchange Commission moved to restore some of the oversight of the industry it lost last year.



7/11/2007

China Names Market Make__Wall Street Journal
The Shanghai Stock Exchange named 13 financial institutions as the first batch of primary dealers, or market makers, for its new electronic bond-trading platform, in a bid to help boost the market's liquidity.

China Enters Danone Spat__Wall Street Journal
China is stepping into the dispute between Groupe Danone SA and its joint-venture partner, Hangzhou Wahaha Group Co., a person familiar with the situation said.

China Telecom Shuffle May Herald Overhaul__Wall Street Journal
The Chinese government has shuffled several top executives at China's state-run telecommunications companies, in what some analysts see as an early sign of a restructuring in the world's largest telecom market.

China Inc. Runs the Bulls__Wall Street Journal
Many Chinese companies are investing heavily in local stocks, creating the potential for a nasty fallout if the market slumps.

China's Foreign Reserves Top $1.3 Trillion, Adding Pressure for Yuan Gains__Bloomberg
China's foreign-exchange reserves, the world's largest, climbed to a record $1.33 trillion at the end of June, increasing pressure on the government to allow faster yuan gains.

Hong Kong's Stocks Post Biggest Drop in a Month; Construction Bank Falls__Bloomberg
Hong Kong's stocks fell, with the Hang Seng Index posting its biggest drop in a month, as investors judged excessive a rally that drove the Hang Seng Index to a record. China Construction Bank Corp. led the drop.



7/10/2007

Xiang Tapped to Revamp, List Ailing Beijing Lender__Wall Street Journal
China's appointment of a senior central banker to head its only major unlisted state bank, Agricultural Bank of China, signals progress in Beijing's plan to recapitalize and list the lender, which is saddled with bad loans.

Riding the Tiger__Wall Street Journal
As CEO of Xinhua Finance, Fredy Bush has chronicled and ridden China's economic boom by providing the nation with Western-style financial information. But with success has come greater scrutiny, including of Xinhua's financial dealings and the recent resignations of executives.

Venture Capitalists Seek New Routes Into China__Wall Street Journal
With their traditional investment route into Chinese firms cut off by government measures to bolster the country's local stock exchanges, many foreign venture-capital firms are considering launching yuan-denominated funds with local rivals, despite some lingering regulatory uncertainty.

China Targets Bribe Takers, But What About Givers?__Wall Street Journal
China's hardening stance on government officials accepting bribes is clear. But what's less certain is China's commitment to punishing the possibly more-widespread practice of offering bribes.

New Recall of Chinese Toys Adds to Safety Concerns__Wall Street Journal
American consumer-protection authorities this week recalled three more Chinese-made products for children, a move that could further fan concerns about the safety of Chinese exports.

China executes ex-food safety chief __Financial Times
China has executed its former drug and food regulator for taking bribes to approve medicines, rapidly carrying out his sentence in an apparent warning to other officials

China’s trade surplus hits fresh record__Financial Times
A surge in exports in June to beat looming rebate cuts took the surplus to a new record, and highlights the impact of China’s undervalued currency.


7/6/2007

Foreign Investors Face New Hurdles Across the Globe__Wall Street Journal
Governments world-wide have imposed or are considering curbs on foreign direct investment, raising concerns in Washington.

Chinese Stocks Tumble On Fears of Less Liquidity__Wall Street Journal
China's benchmark index had its biggest daily fall in a month on concerns over new issues diverting funds and expectations that other monies will flow to overseas capital markets because of an increase in quotas for foreign investment.

Chinese Miner Joins IPO Rush__Wall Street Journal
Western Mining Co., China's second-largest lead miner, raised 6.2 billion yuan ($816.3 million) through a domestic initial public offering of stock to finance mining projects, joining a rush to tap the rapidly expanding Shanghai stock market.

China Aims to Calm Stock Market Over Bond Plan and Liquidity Fears__Wall Street Journal
China sought Thursday to play down concerns a 1.55 trillion yuan ($204.11 billion) special government-bond issue would sharply curb stock-market liquidity, saying the debt plan isn't meant to be a tightening measure aimed at domestic equity markets.

Beijing’s cooling process begins__Financial Times
Share prices in mainland China have fallen 12 per cent in two weeks as investors fret about the glut of new share and bond issues that the mainland markets will have to absorb in the coming months.

Clinton and Obama back China crackdown__Financial Times
Hillary Clinton and Barack Obama have agreed to co-sponsor legislation that threatens trade retaliation against Chinese goods to cajole Beijing into revaluing its currency, according to their Senate aides. 



7/5/2007

Curb on Chinese bank stakes signalled __Financial Times
Strategic investments in Chinese banks by foreign private equity firms and conglomerates will struggle to secure approval as official backing for non-bank involvement in the sector has ended

China to lead world IPO league__Financial Times
Capital raised by new listings in China is set to exceed $52bn this year, twice the figure forecast in January, putting the mainland on track to become the world’s leading centre for share offerings this year

China to Prevent Loans To Firms Tied to Pollution__Wall Street Journal
China said it will bar bank loans to companies that violate environmental rules in a new effort to reduce pollution.

Chinese City Banks Give IPO Plans__Wall Street Journal
Bank of Nanjing Co. and Bank of Ningbo Co., the first city commercial banks in China to sell shares to the public, said the subscription period for their yuan-denominated Class A share offerings will be next week.

China Boqi to List On Tokyo Exchange__Wall Street Journal
China Boqi Environment Solutions Technology (Holding) Co. yesterday received approval to list on the Tokyo Stock Exchange next month, possibly becoming the first Chinese firm to list on a Japanese exchange not designed for start-up companies.

China Blocks Carlyle Bid for Bank__Wall Street Journal
China has rejected Carlyle Group L.P.'s bid to take an 8% stake in a small Chinese bank, reflecting the hurdles facing big private-equity firms looking to invest in China's financial sector.