Business Digest, February 26, 2013

Dim sum bond MPF fund on the way

Offshore yuan bonds, known as dim sum bonds, will join the investments eligible for the Mandatory Provident Fund on March 4, when Invesco and BCT offer a dim sum bond MPF fund. It is the first MPF bond fund of which at least 70 per cent of the net asset value will be in yuan-denominated bonds issued outside the mainland. Kanis Li

Sany earnings slump 35.4pc as costs rise

Coal-mining machinery maker Sany Heavy Equipment International reported a sharp drop of 35.4 per cent in earnings to 500 million yuan (HK$622 million) for last year, on higher cost of sales and selling and distribution expenses on top of a 3.7 per cent drop in revenue from the previous year to 3.64 billion yuan. Sophie Yu

Japan to sell US$10b stake in tobacco firm

Japan's Ministry of Finance will sell a stake in Japan Tobacco for about US$10.3 billion to help cover reconstruction costs of the 2011 earthquake in the country's largest share offering in three years. The ministry owns about one billion shares, or 50 per cent, of the cigarette maker and will offer as many as 333.3 million shares next month. Bloomberg

KFC promises to step up quality control

KFC launched a campaign to rebuild its battered brand on the mainland after a scandal over misuse of drugs by its poultry suppliers. The fast-food chain promised to tighten quality control and said it had terminated more than 1,000 small producers. AP