• SAFE eases regulations for special economic zones

    May 24, 2013

    China's State Administration of Foreign Exchange (SAFE) announced that it will ease regulations of foreign currency transactions for firms operating in special economic zones in the country. The simplified regulations now allow companies to take legal profits derived from exports out of the country, as long as they are located in special economic zones. The new rules, which will take effect in June, will also cut down paperwork requirements and reduce the frequency of regulatory checks.
  • Exchange link to boost China demand for HK stocks

    Sep 17, 2014

    Demand for casino and technology shares listed in Hong Kong from Chinese investors is expected to rise when the planned exchange link between Shanghai and Hong Kong pushes through, Goldman Sachs Group Inc predicted. Casino and technology shares are not available in Shanghai and Goldman said both Galaxy Entertainment Group and Tencent Holdings stand to benefit from the link, which gives wealthy mainland investors access to 266 stocks traded in Hong Kong. Under the link with Hong Kong, which is scheduled to begin in October, mainland investors with at least Rmb500,000 (USD81,000) in their stock accounts will gain access to stocks traded on the Hang Seng Composite large and midcap indexes.
  • China 'to surpass' US as the biggest pool of CFAs

    Sep 15, 2014

    Analysts are saying that mainland China will beat the United States and become the biggest pool of chartered financial analysts in about 20 years. Managing Director Paul Smith of the CFA Institute Asia-Pacific division, which puts together tests for credentials, said there are 3,300 CFA charter holders in China alone, and that there will be 4,000 in the next 60 days. The United States has 60,000 charter holders and 123,000 all over the world.

  • Lloyd's gets nod to open branch in Beijing

    Sep 15, 2014

    Lloyd's, the world's specialist insurance market, can now proceed with its China expansion after receiving a license to establish a branch office in Beijing. Lloyd's already has an underwriting office in Shanghai but Lloyd's Chairman John Nelson said China is an important market for Lloyd's and offers huge growth potential, thus the expansion. Nelson said Lloyd's will now be working closely with the Chinese regulators on the details of Lloyd's Beijing branch office as the process progresses. While reinsurance is its main business in China, Lloyd's is also making progress with its direct insurance services.

  • 50% of China's rich seek to leave for abroad

    Sep 15, 2014

    According to the results of a Barclays survey, about half of mainland China's upper economic bracket revealed plans to leave for overseas in the next five years. Over 2,000 respondents, having a net worth of at least USD1.5bn, said that they would rather live abroad. Compared to the global average of 29%, 47% of the Chinese that were surveyed favoured moving to another country. Singapore's rich, 23% of whom plan to migrate in five years' time, were the second-most eager to leave home.

  • China bank loans hit USD114.6bn in August

    Sep 12, 2014

    China's banks lent Rmb702.5bn (USD114.6bn) in new loans in the month of August, almost twice as much as July's Rmb385.2bn (USD62.84). According to the People's Bank of China, the country's central bank, the August loans were higher than the Rmb650bn (USD105.90bn) median forecast made by 14 economists that The Wall Street Journal polled. The total social financing was pegged at Rmb957.4bn (USD155.98bn) in August-- up from Rmb273.1bn (USD44.49bn) in July.

  • 300 Chinese billionaires' wealth top USD1.6bn

    Sep 12, 2014

    A report released by Shanghai-based magazine Hurun Report showed that 300 Chinese individuals have personal fortunes of over Rmb10bn (USD1.6bn) as of the end of last year. The Hurun Report attributed the increase to the country's overall GDP growth and appreciation in the value of real estate. The report also said that 8,300 Chinese have wealth of over Rbm1bn (USD160m). It forecasts that the number of people in China with personal wealth topping 10 million yuan would reach 1.2 million in the next three years.

  • Richard Yu named China president of Aviva-COFCO

    Sep 11, 2014
    Aviva Asia has confirmed the appointment of Richard Yu as president of Aviva-COFCO Life Insurance (Aviva-COFCO), its joint venture in China. Yu, who has been interim president of Aviva-COFCO since August 2013, will be responsible for overseeing all the business operations and driving the ambitious growth of Aviva-COFCO, the top seven foreign life insurer in China. Prior to being named interim president, Richard held the position of chief financial officer for five years. In a statement, Yu said the Chinese life insurance industry is growing at an incredible pace.
  • HK raises USD1bn in first sale of Islamic debt

    Sep 11, 2014

    The Special Administrative Region of Hong Kong made its first-ever sale of Islamic debt on 10 September, issuing bonds as a means to counter the growing uncertainty over the outlook for global interest rates. Hong Kong raised USD1bn in sukuk or Islamic bonds. Investors paid a yield of 2.005%, according to the Hong Kong Monetary Authority, with over USD4.7bn in orders made. Some 36% of those who purchased sukuk are from the Middle East.

  • Yuan value at six-month peak

    Sep 10, 2014

    The value of the official currency of mainland China, the renminbi or yuan, gained 95 basis points to reach 6.1425 in central parity against the United States dollar on 10 September. According to the China Foreign Exchange Trading System, the rate is at its peak versus the USD since 19 March, the yuan's central parity rate was at 6.1351. The current gain stretched the yuan's growth trend since 5 September.
  • Standard Chartered's RGI up in July

    Sep 9, 2014

    The Standard Chartered's Renminbi Globalisation Index hit 1,911 in the month of July, a 0.85% rise month-on-month and 69% rise year-on-year. Index growth was slow because of some detraction of offshore yuan foreign-exchange turnover and deposits. According to Standard Chartered, RGI is a comprehensive index that measures the internationalisation of offshore yuan. It is the first industry standard that properly tracks the yuan progress.

  • Shanghai-HK stock connection to fast track capital-market reform program

    Sep 9, 2014

    Chang Jian, chief China economist at Barclays, said in his research report that the Shanghai-Hong Kong Stock link scheme that lets investors access the mutual-stock market makes it faster for China's capital market reforms to be implemented. Chang adds that the program boosts yuan liquidity in Hong Kong and opens new investments to overseas yuan holders -- supporting the yuan's internationalisation.

  • H1 debts of Chinese steelmakers up

    Sep 8, 2014

    China's economic slowdown has badly affected the country's steel firms. More than 50% of China's listed steel-making firms saw their debts rise to alarming levels from January to June this year. Eighteen of the 33 listed steel companies posted debt-to-asset ratios of over 70%. Xinjiang-based Bayi Iron & Steel Co Ltd alone had a debt ratio of 86.46%. lgmi.com Analyst Zhang Lin said that a debt-to-asset ratio of over 70% is a sign of capital problems.

  • China's shipbuilders' profits fall

    Sep 8, 2014

    The January-July profits of China's shipbuilders declined as more orders came in but profits still dropped, according to the China Association of National Shipbuilding Industry. CANSI explained that overcapacity and more intense competition have harmed the industry with fewer ship deals and lower price increases. Shipbuilding orders went up 42.5% year-on-year to 45.73 million deadweight tonnes from January to July, but the completed shipbuilding data dove 21.5% to 20.66 million DWT.

  • State-owned Central Huijin seeks bank investments in Europe

    Sep 4, 2014

    Central Huijin Investment Ltd, a unit of China's USD653bn sovereign wealth fund, is looking into banks in Europe for possible investments, said its Vice Chairman Li Jiange. Li said Huijin seeks to expand abroad as investment return in China has gone down. Huijin, Li added, is interested in European banks. Huijin has investments in 18 Chinese financial institutions but none in other countries.

  • Tax on fuel to fund green cars

    Sep 4, 2014

    BYD Founder and CEO Wang Chuanfu said China should consider a new fuel tax in order to generate more revenue that can be used to promote the use of green energy cars in the country. Wang said that by adding a mere Rmb0.2 (USD0.03) tax per one litre of gas will immediately result in tens of billions of tax income per year based on the number of cars running in the country. Wang said the money can be used to subsidise new-energy cars, whose sales have been hindered by factors such as high price and a lack of charging stations.

  • Foreigners now allowed to purchase Shanghai-listed shares in HK

    Sep 4, 2014

    In October this year, foreign-based investors can purchase Chinese firms listed in Shanghai through the Hong Kong Stock Exchange. Money managers have reacted by pouring investments on funds tracking A-shares before the rule change is applied. Brokerage companies are also beefing up their staff to be able to handle extra trading. The A-shares tracking Shanghai Composite Index has gone up 12% starting June.

  • Weakening yuan pulls China's corporate revenues down

    Sep 1, 2014
    Companies in China have been borrowing cheap money overseas, but they are paying the real price for it now. Many Chinese firms complained to have sustained hits to their H1 financial results from foreign-currency exchange rates. These firms borrowed billions of dollars from the United States, Hong Kong, and other places and the weakened Chinese yuan has made Chinese exports cheaper to sell overseas and interest payments on foreign debt more expensive. Bei Fu, Standard & Poor's analyst, said that it is difficult to tell if the yuan will keep appreciating in the next three to five years.
  • China Eastern Airlines' H1 net profit falls 98%

    Sep 1, 2014

    China Eastern Airlines had its net profit falling a disastrous 97.76% year-on-year in H1 of this year. CEA only made Rmb14m (USD2.28m), registering a business revenue of Rmb42.59bn (USD6.93bn) from January to June 2014 -- a 2.68% increase year-on-year, according to a statement filed with the Shanghai Stock Exchange on 31 August. CEA said that its substandard performance was caused by fewer high-end business tourists, improved high-speed trains and geopolitical instability.

  • Yuan deposits at Singapore banks hit Rmb254bn

    Sep 1, 2014
    The Monetary Authority of Singapore (MAS) announced that banks in Singapore held Rmb254bn (USD41.33bn) worth of yuan deposits at the end of June, boosting the country's goal to become a major offshore trading centre for the Chinese currency. The amount was higher than the Rmb220bn (USD35.80bn) that banks held at the end of Q1. To further promote the use of yuan, Singapore and China have agreed to allow eligible companies and individuals in the Suzhou Industrial Park to conduct cross-border yuan transactions with the city-state.
  • China Galaxy Securities seeks to raise USD1.24bn in Shanghai IPO

    Sep 1, 2014
    One of China's largest brokerages, China Galaxy Securities Co Ltd, seeks to raise about Rmb7.6bn (USD1.24bn) as it plans to list in Shanghai. Galaxy aims to sell 1.69 billion A shares when its application is approved by the China Securities Regulatory Commission (CSRC). Galaxy hopes to list in China after the government resumed listing and IPOs in January following a 14-month hiatus.
  • USD1.35bn in QFII quotas granted in August

    Sep 1, 2014

    A total of USD1.35bn worth of QFII quotas was handed out by China's State Administration of Foreign Exchange (SAFE) to eight overseas fund managers in August. The August figure brings the total volume of allocations awarded under the scheme to USD59.7bn, covering 254 financial entities, the SAFE said. The outstanding amount under its Renminbi Qualified Foreign Institutional Investor (RQFII) program stood at Rmb278.6bn (USD45.36bn) for the month, said the country's foreign exchange regulator.

  • USD1.35bn in QFII quotas granted in August

    Sep 1, 2014

    A total of USD1.35bn worth of QFII quotas was handed out by China's State Administration of Foreign Exchange (SAFE) to eight overseas fund managers in August. The August figure brings the total volume of allocations awarded under the scheme to USD59.7bn, covering 254 financial entities, the SAFE said. The outstanding amount under its Renminbi Qualified Foreign Institutional Investor (RQFII) program stood at Rmb278.6bn (USD45.36bn) for the month, said the country's foreign exchange regulator.

  • Chinese banks report slower profit growth in H1

    Sep 1, 2014

    Five of China's 16 listed banks reported a net profit growth rate of less than 10% in H1 2014, from only two banks at the same time last year. The five banks, including Bank of Communications, China Citic Bank, Everbright Bank, China Construction Bank and the Commercial and Industrial Bank, said the single-digit profit growth is a result of an economic slowdown at home and abroad. Of all the major banks in China, the Commercial and Industrial Bank had the biggest net profit of Rmb148.4bn (USD24bn) in H1, exceeding the combined net profits of Sinopec, CNPC and CNOOC, China's three oil giants.

  • Bad debt manager Huarong gets USD2.4bn investment

    Aug 29, 2014

    A group of Chinese and foreign investors, including Goldman Sachs and Warburg Pincus, poured about USD2.4bn of investment into China's biggest bad debt manager, China Huarong Asset Management, ahead of the company's IPO in Hong Kong. State-owned Huarong sold 20.98% stake to the eight investors for Rmb14.54 (USD2.36bn), which in turn valued the company at about USD11bn. Huarong was established by the government to clean up the banking system of bad loans. It has become the biggest of the four state-owned firms set up in the late 1990s to take bad loans off the books of China's biggest banks.

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