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ICBC completes record bond sale in Australia

Industrial & Commercial Bank of China Ltd's Sydney unit has sold A$650 million ($676 million) worth of three-year bonds in its biggest offering in the currency, sources have told Bloomberg. The floating-rate notes due in February 2016 were priced to yield 100 basis points more than the bank bill swap rate, the source said, asking not to be identified. ICBC Sydney, part of the world's largest bank by market value, paid a 105 basis-point spread when it sold A$400 million of three-year bonds with its debut Australian public offering in July 2011, according to data compiled by Bloomberg.

Listed developers rise to 3-year highs on upbeat sales

Chinese property stocks rose to their highest levels in almost three years after the biggest listed developer said it sold more homes in January. The Shanghai Stock Exchange Property Index jumped 4.8 percent to close at the highest level since mid-April, 2010. China Vanke Co, the biggest developer on mainland exchanges, which announced upbeat sales on Monday, jumped 3.6 percent to 12.33 yuan in Shenzhen, while China State Construction Engineering Corp surged 9.7 percent to 4.06 yuan, its largest advance since mid-Oct 2009.

Imported iron ore stocks drop for fourth week

Stockpiles of iron ore at 25 major Chinese ports have dropped for four weeks running, according to the latest iron ore price report released by Xinhua News Agency on Tuesday. Inventories of imported iron ore at the ports stood at 75.94 million tons last week, down 3 million tons, or 3.8 percent, from the previous week, the report said. Part of the reason for last week's fall was foggy weather in north China and hurricanes in Australia that affected shipments, the report said.

Record 450 billion yuan added to financial system

China added a record 450 billion yuan ($72 billion) to the financial system using reverse-repurchase contracts on Tuesday, helping banks meet increased demand for cash before the weeklong Lunar New Year break. The People's Bank of China offered 14-day agreements at a yield of 3.45 percent, helping push the benchmark money-market rate down for the first time in seven days. The contracts inject funds using short-term asset purchases, and Tuesday's amount was the most for a single day and exceeded each of the weekly totals for the past three months.

China, Malaysia plan $3.4bindustrial park in Kuantan

Chinese and Malaysian companies have agreed to invest 10.5 billion ringgit ($3.4 billion) on an industrial park in the Southeast Asian nation, which will include steel and aluminum plants as well as a palm oil refinery. China's Guangxi Beibu Gulf International Port Group will build the park in Kuantan with Malaysia's Pahang state government and property developer SP Setia Bhd, according to a statement from the East Coast Economic Region Development Council.

Sinopec in biggest shares sale since listing in 2000

China Petroleum & Chemical Corp will raise HK$24 billion ($3.1 billion) in its biggest share sale since listing in 2000 as it looks to add production assets. Asia's biggest refiner, known as Sinopec, will sell 2.85 billion Hong Kong-traded shares at HK$8.45 each, 9.5 percent lower than Monday's close, according to a filing after the market closed.

Officials may be assessed in pollution fight, report says

China is considering measures in 19 provinces that would assess local governments on their efforts to improve air quality, the Economic Information Daily reported. Officials may be evaluated on criteria including the rate at which projects aimed at controlling pollution are implemented, and the elimination of obsolete vehicles, the report said.

Zoomlion denies claims of false sales and accounting

Construction equipment maker Zoomlion Heavy Industry Science & Technology Co denied allegations in an article that it reported fictitious sales, and falsified accounts. All allegations in the report are "false, groundless and misleading", the Changsha-based company said in a Hong Kong stock exchange filing, without identifying the publication that published the report. "No accounting fraud has ever been committed," the company said.

Service industries grow at fastest pace in 4 months

China's service industries expanded at the fastest pace in four months in January, a private survey found, supporting a recovery in the world's second-biggest economy. The services Purchasing Managers' Index released by HSBC Holdings Plc and Markit Economics on Tuesday rose to 54 from 51.7 in December. A reading above 50 indicates expansion. A separate government-backed survey published on Sunday showed service industries grew at the fastest pace since August.

Credit risks persist for local and regional governments

The default risk of some sub-provincial governments in China and their financing platforms could rise significantly during the next two years, Standard & Poor's said in a report on Tuesday. The report, titled "No Major Default So Far; So Are Chinese Local Government Debts Now Safer?," says the debt profile of some local and regional governments remains risky. The cash flow needs of many LRGs and their financing platforms will remain high in the next few years. Moreover, many LRGs may have weakening liquidity positions, which, combined with a perception of more modest future extraordinary government support, could rein in new borrowing.

China to promote M&A in the steel industry

China's steel industry is likely to lead the M&A campaign launched by the Ministry of Industry and Information Technology and joined by other 11 ministerial-level departments, sources said. On Jan 22, the National Development and Reform Commission, along with other ministries, jointly issued guidelines to promote M&A deals among major industries such as auto, steel, cement, shipbuilding and healthcare.

Foreign investors gain $1.36 investment quota

In January eight qualified foreign institutional investors, or QFIIs, gained a $1.36 billion investment quota from the State Administration of Foreign Exchange. By the end of January, SAFE has approved a $39.99 billion investment quota for 177 foreign institutions, compared with a cumulative investment of $37.4 billion as of December. The total QFII quota had been raised to $80 billion last year. The approved renminbi-QFII quota has increased to 70 billion yuan and that for the qualified domestic institutional investors, the so-called QDIIs, has been lifted up to $85.53 billion until January, according to data from SAFE.

British beer maker to buy Kingway Brewery

Britain-based brewer SABMiller on Tuesday said that its Chinese joint-venture had agreed to buy the brewery business of China beer maker Kingway for 5.38 billion yuan ($864 million). "SABMiller Plc announces that China Resources Snow Breweries Ltd, its joint venture with China Resources Enterprise, has entered into an agreement with Kingway Brewery Holdings Ltd to acquire its brewery business for a total cash consideration of 5.38 billion yuan," a statement said. Ari Mervis, managing director of SABMiller Asia Pacific, said the purchase gives the maker of Grolsch and Miller Lite beers "greater access to high growth and attractive regional markets in China."

Taiwan customers allowed to open yuan accounts

Banks in Taiwan will start allowing customers to open yuan accounts and remit funds to the mainland from Wednesday, officials said. The regulations, which follow an agreement signed last August, are expected to lower the risk of exchange rate fluctuation and the cost of currency exchange, officials said. Trade between Taiwan and the mainland amounted to $168.96 billion in 2012.

China Daily- Agencies

(China Daily 02/06/2013 page14)