Asset firms win extra yuan quotas

Asset managers E Fund (Hong Kong) and China Asset Management (Hong Kong) have each secured a further 800 million yuan ($128 million) quota to invest in the mainland's capital market via offshore fixed-income funds denominated in yuan, amid investors' increased interest in buying yuan assets.

It brings the total quota for E Fund RMB Fixed Income Fund under the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme to 1.9 billion yuan and raises the size of China Asset Management's bond fund to 2 billion yuan.

"China's yuan currency has better potential to appreciate this year, which makes RQFII bond fund an attractive option for investors who hope to secure steady returns while managing risks," said Henry Lee, a director at China Asset Management (Hong Kong)'s sales and marketing team.

Most analysts expect the yuan to appreciate at a faster pace this year against the dollar, compared to a 1 percent gain in 2012.

SHK joins Shimao to raise funds

Sun Hung Kai Properties Ltd and Shimao Property Holdings Ltd are marketing dollar-denominated bonds after the busiest week for US currency sales by developers in Asia since September.

Shimao, whose projects include the five-star Shanghai Hyatt on the Bund, is offering seven-year bonds yielding about 7.25 percent, said a person familiar with the matter, who asked not to be identified because the terms aren't set. Sun Hung Kai plans to sell 10-year bonds at about 195 basis points more than Treasuries as soon as today, a separate person said. Asian real-estate companies sold $1.25 billion of notes last week, the most since the seven-day period ending Sept 14, according to data compiled by Bloomberg.

Galaxy Securities to boost IPO size

China Galaxy Securities Co may seek as much as $1.9 billion in an initial public offering in Hong Kong and Shanghai, almost double an earlier target, after Chinese stocks rallied from a four-year low, said two people with knowledge of the matter.

The Beijing-based brokerage has submitted applications to regulators in Hong Kong and China and may start the IPO in the second quarter, said the people, who asked not to be identified because the plan is private. Central Huijin Investment Ltd, a unit of China Investment Corp, owned 79 percent of Galaxy Securities at the end of 2011, according to Huijin's website.

Shui On Land's profit to dip in 2012

Hong Kong-listed property developer Shui On Land Ltd said on Monday it expects its full year 2012 profit to drop significantly due to fewer properties being delivered during the period.

In a filing to the Hong Kong bourse, the developer said it remains positive on the long-term prospects for the market, while lock-in sales brought forward to 2013 would be about 6.4 billion yuan ($1.03 billion). It gave no further details.

Most stocks gain as developers rise

Most Hong Kong stocks rose as developers climbed and exporters got a boost from US jobs data. Gains were limited as the benchmark index traded near a 19-month high, fueling speculation shares were overbought.

About three stocks rose for each that fell on the Hang Seng Composite Index, which gained 0.4 percent at the close. The benchmark Hang Seng Index was little changed at 23,329.75, trading about 0.3 percent below its highest since June 2011. The Hang Seng China Enterprises Index of mainland companies climbed 0.3 percent to 11,973.07.

Futures on the Hang Seng Index gained 0.1 percent to 23,329.

bloomberg-Reuters

(HK Edition 01/08/2013 page2)