Business Digest, October 18, 2012
China Life, the world's largest insurer by market value, warned of a 55 per cent fall in profits in the first nine months - pointing to its first quarterly loss since 2008. The warning from the state-controlled company surprised analysts and could bode ill for other financial firms, suffering from falling stock and bond markets that have hurt investment income. Slowing growth has also made it harder for insurers to raise premiums. Reuters
An alliance of K Wah International and Sino Land outbid seven other bidders to win the residential site to the north of Long Ping MTR station in Yuen Long for HK$1.708 billion. Five per cent of the project's net profit will go to the government. The site went for about HK$3,260 per sq ft of gross floor area. Paggie Leung
BHP Billiton, the world's largest mining company, expects China's growth to decline to about 7 per cent to 8 per cent this year and stay at this level for the next decade as it becomes a consumer-led economy. But a "significant opportunity" remains, Marius Kloppers, BHP's chief executive, said. A destocking cycle in China that has weighed on prices, including for iron ore, has run its course, he said. Bloomberg
