Business Digest, October 9, 2012

PUBLISHED : Tuesday, 09 October, 2012, 12:00am
UPDATED : Tuesday, 09 October, 2012, 3:01am

ETF to be listed in yuan and HK dollars

Hong Kong will soon have its first dual-currency exchange-traded fund. Investors will be able to trade in the listed fund's units in either Hong Kong dollars or yuan. The Securities and Futures Commission approved the Harvest MSCI China A Index ETF yesterday. It has two billion yuan (HK$2.45 billion) to invest in mainland stocks tracking the MSCI China A Index, its prospectus says. There will be an initial public offering before it lists on the stock exchange. Enoch Yiu

HKEx appoints first chief regulatory officer

Hong Kong Exchanges and Clearing has appointed David Graham, who has 30 years of legal experience in the financial sector, to be its first chief regulatory officer, a new position created to oversee the listing division and other compliance functions. Graham will join the exchange in January and will succeed Mark Dickens as head of listing when Dickens retires in July next year. Enoch Yiu

China Oriental to buy rented steel plant

China Oriental has agreed to acquire from Jinxi Wan Tong a steel production plant with two million tonnes of annual capacity and related facilities for an appraised value of 734.3 million yuan (HK$905.5 million), 24.6 per cent higher than net book value. After offsetting debt owed to itself, China Oriental will need to pay the firm 248.3 million yuan. China Oriental leases the facilities from Wan Tong at a monthly rent of 25 million yuan. Eric Ng