Business Digest, January 17, 2013

EU envoy rejects idea of trade war with China

The European Union will not be drawn into a trade war with China, EU ambassador to Beijing Markus Ederer insisted, a day after trade sources said the European Commission found China illegally subsidises its steel producers. The preliminary finding asked EU members to back punitive tariffs against Chinese steel firms, a move that angered Beijing. Reuters

Foreign exchange reserves hit US$3.32tr

People's Bank of China data showed the country's foreign exchange reserves rose each month during the fourth quarter, reaching a record US$3.32 trillion last month. The mainland's central bank and financial institutions bought a net 134.6 billion yuan (HK$167.8 billion) of foreign currency last month, the largest amount in 11 months. Bloomberg

Cheung Kong to issue US$500m of bonds

Cheung Kong plans to issue US$500 million worth of perpetual bonds at a fixed coupon rate of 5.375 per cent. The unrated securities will come with a non-callable option in the first five years. The proceeds will be used for general corporate funding, the term sheet shows. Jeanny Yu

HKMA announces senior appointments

At the Hong Kong Monetary Authority, the city's de facto central bank, Henry Cheng, head of the financial stability surveillance division, will be appointed executive director (banking supervision) when Nelson Man retires on April 1. Darryl Chan, former deputy secretary for financial services, will replace Howard Lee as executive director (corporate services) from April 15. Lee will become executive director (monetary management) from May 1 when Edmond Lau leaves for further studies. Enoch Yiu