https://www.scmp.com/rss/320610/feed Jing Yang is a business reporter with the SCMP. She has four years’ experience covering companies and recently shifted her focus to markets. Jing holds bachelor of economics and master of journalism degrees and is fluent in English, Putonghua and Cantonese. She is from Guizhou province in Southwest China, a remote place famous for bizarre, breathtaking landscapes, the country’s biggest waterfall and the national wine Moutai. Always keeping an open mind, Jing would like to hear your feedback,... en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Headwinds are expected to blow through China’s offshore renminbi bond market next year, as unfavourable economic and regulatory factors that sent the market to a six-year low persist. The offshore renminbi bond market, also known as dim sum bonds, has been caught between a rock and a hard place this year. Massive deregulation in the onshore renminbi bond market and rounds of monetary easing by the People’s Bank of China since late last year have lured Chinese companies, especially property... https://www.scmp.com/business/companies/article/1896849/tough-times-chinas-dim-sum-bonds?utm_source=rss_feed https://www.scmp.com/business/companies/article/1896849/tough-times-chinas-dim-sum-bonds?utm_source=rss_feed Fri, 01 Jan 2016 06:00:19 +0000 More reforms are needed in China’s domestic bond market to captivate foreign investors, and the yuan’s inclusion into the International Monetary Fund’s elite SDR basket was only an inch ahead in a mile-long journey. With over 45 trillion yuan (HK$53 trillion), China’s bond market ranks the third largest in the world after the US and Japan. Riding on the tailwind of enormous deregulation and a credit easing cycle, new issuances have surged 73 per cent year-on-year to 17 trillion yuan between... https://www.scmp.com/business/markets/article/1894090/panda-bonds-alluring-chinas-booming-bond-market?utm_source=rss_feed https://www.scmp.com/business/markets/article/1894090/panda-bonds-alluring-chinas-booming-bond-market?utm_source=rss_feed Wed, 23 Dec 2015 09:20:41 +0000 China’s foreign exchange watchdog is loosening restrictions on its Qualified Foreign Institutional Investors (QFII) scheme, making it easier for foreign investors to transfer funds between some investment products. The rule change, published on the website of the State Administration of Foreign Exchange on Monday, will allow foreign investors to share their investment quota between different open-end funds. For other types of funds, the use of quotas are still fund-specific, unless additional... https://www.scmp.com/business/banking-finance/article/1888253/china-loosens-qfii-quota-rules?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/1888253/china-loosens-qfii-quota-rules?utm_source=rss_feed Tue, 08 Dec 2015 03:00:00 +0000 Hong Kong's two biggest developers cashed out only half of the flats on offer, as the break-up of a home price rally and a pending interest rate rise in the US took its toll on buying sentiment yesterday. Around 141 out of 238 homes on offer at Yuccie Square in Yuen Long, developed by Cheung Kong Property Development, found buyers by 7pm, the company said. Park Vista, also in Yuen Long, offloaded 123 units, leaving 146 units untaken, according to developer Sun Hung Kai Properties, which pocketed... https://www.scmp.com/property/hong-kong-china/article/1887386/yuen-long-property-sales-hong-kong-sluggish-amid-interest?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/1887386/yuen-long-property-sales-hong-kong-sluggish-amid-interest?utm_source=rss_feed Sat, 05 Dec 2015 17:58:14 +0000 China’s top economic planner has taken a substantial step towards letting market forces play a role in corporate bond issuance, publishing a new guideline governing the approval procedure for companies’ debt sales. The National Development and Reform Commission (NDRC) said on its website on Wednesday that issuers of bonds rated AA+ or higher can skip a second review process. It also removed the quotas for AA issuers such as town-level governments and companies. The new rule is aimed at... https://www.scmp.com/business/companies/article/1885797/chinas-top-planning-agency-streamlines-issuance-certain-corporate?utm_source=rss_feed https://www.scmp.com/business/companies/article/1885797/chinas-top-planning-agency-streamlines-issuance-certain-corporate?utm_source=rss_feed Wed, 02 Dec 2015 04:45:30 +0000 Mainland China’s central bank has moved to assuage concerns that depreciation of the Chinese yuan is in the cards in the wake of a milestone decision by the International Monetary Fund to give the currency reserve status recognition. People’s Bank of China deputy governor Yi Gang told reporters on Tuesday （that the current controlled float exchange regime will continue, while pledging to transition towards a “clean float”, or a free float mechanism in the future. “Our long-term goal is a clean... https://www.scmp.com/business/markets/article/1885595/managed-float-continue-chinese-yuan-despite-milestone-imf-decision?utm_source=rss_feed https://www.scmp.com/business/markets/article/1885595/managed-float-continue-chinese-yuan-despite-milestone-imf-decision?utm_source=rss_feed Tue, 01 Dec 2015 12:45:15 +0000 China will press ahead with financial and capital account reforms after the yuan’s inclusion in an elite currency club held by the International Monetary Fund, People’s Bank of China deputy governer Yi Gang has pledged. “The [Special Drawing Rights] basket is reviewed every five years. Any currency can be included when criteria are met. Likewise, it can also be excluded when the conditions are no longer met,” Yi said in a press briefing on Tuesday morning. The IMF approved the yuan, also known... https://www.scmp.com/business/companies/article/1885459/more-financial-reforms-store-after-imf-verdict-pboc-deputy?utm_source=rss_feed https://www.scmp.com/business/companies/article/1885459/more-financial-reforms-store-after-imf-verdict-pboc-deputy?utm_source=rss_feed Tue, 01 Dec 2015 06:15:43 +0000 The Chinese yuan has depreciated in the wake of a milestone decision by the International Monetary Fund to include the currency in an elite group. Offshore yuan (CNH) depreciated by over 150 basis points, or 0.24 per cent, to 6.4413 per US dollar in the early hours of Tuesday, shortly after the IMF announced that it would include the currency in the Special Drawing Rights (SDR) basket, and give it a weighting greater than the Japanese yen and British pound. The decision, effective October 1 next... https://www.scmp.com/business/markets/article/1885433/chinas-yuan-loses-ground-after-milestone-imf-reserves-inclusion?utm_source=rss_feed https://www.scmp.com/business/markets/article/1885433/chinas-yuan-loses-ground-after-milestone-imf-reserves-inclusion?utm_source=rss_feed Tue, 01 Dec 2015 03:38:37 +0000 Hong Kong stocks were lifted to a strong close on Tuesday after China’s yuan was included in an elite reserve basket by the IMF, and analysts expected Chinese equity markets will likely benefit from the breakthrough in the long run. The Hang Seng Index closed 1.94 per cent, or 427.17 points, higher at 22,423.59. The H-share Index, tracking mainland based companies, also rose 2.36 per cent, or 231.50 points to 10,022.14. The mainland Chinese markets though traded nearly flat, as the yuan’s... https://www.scmp.com/business/companies/article/1885389/hong-kong-shares-claw-way-firm-close-after-imf-verdict-yuan?utm_source=rss_feed https://www.scmp.com/business/companies/article/1885389/hong-kong-shares-claw-way-firm-close-after-imf-verdict-yuan?utm_source=rss_feed Tue, 01 Dec 2015 01:30:15 +0000 The yuan is expected to be a shoo-in for the International Monetary Fund's reserve currency basket after its managing director Christine Lagarde's public endorsement of the currency, but its inclusion may come with a lower weighting. Speculation is mounting on the calculation metrics of a yuan inclusion as the IMF readies to review the composition of the special drawing rights basket this week. The SDR, an account unit of the IMF, is rarely used in daily financial transactions. Currently made up... https://www.scmp.com/business/money/article/1885015/yuan-expected-get-low-sdr-weighting?utm_source=rss_feed https://www.scmp.com/business/money/article/1885015/yuan-expected-get-low-sdr-weighting?utm_source=rss_feed Sun, 29 Nov 2015 14:35:52 +0000 The yuan traded at its weakest level in two and a half months in the offshore market on Friday as traders bet on Beijing loosening up on currency intervention once the International Monetary Fund gives its verdict on the yuan’s inclusion in an exclusive basket of currencies. Offshore yuan, also known as CNH, fell more than 200 basis points, or 0.3 per cent, to 6.45 against the US dollar, the weakest level since September 9. The gap with its onshore counterpart, the CNY, has widened to more than... https://www.scmp.com/business/markets/article/1884265/offshore-yuan-sinks-weakest-level-two-and-half-months?utm_source=rss_feed https://www.scmp.com/business/markets/article/1884265/offshore-yuan-sinks-weakest-level-two-and-half-months?utm_source=rss_feed Fri, 27 Nov 2015 13:41:42 +0000 Mainland stocks suffered their worst sell-off since late August on Friday, as investors dumped equities on fears about Beijing’s crackdown on stock speculation and further signs of economic slowdown. Sentiment was battered by a barrage of bearish news, including a widening probe of the brokerage sector by regulators, a big drop in industrial profits, and the weakest yuan mid-point fix in about three months. The Shanghai Composite Index sank 5.5 per cent, the steepest percentage decline since... https://www.scmp.com/business/markets/article/1884049/china-stocks-plunge-most-three-months-broker-probe-growth-fears?utm_source=rss_feed https://www.scmp.com/business/markets/article/1884049/china-stocks-plunge-most-three-months-broker-probe-growth-fears?utm_source=rss_feed Fri, 27 Nov 2015 01:15:30 +0000 Chinese stocks reversed from earlier gains to close lower on Thursday, as investors looked ahead to the resumption of IPOs next week, with the first batch of 10 slated to begin order taking following a four-month ban on new listings. The Shanghai Composite Index dropped 0.3 per cent to end at 3,635.55, snapping a two-day winning streak. The large-cap CSI300 finished 0.6 per cent lower at 3,759.43. Turnover increased to 426 billion yuan in Shanghai, against 382 billion yuan on Wednesday. The... https://www.scmp.com/business/markets/article/1883617/china-stocks-end-lower-ipo-resumption-looms-hong-kong-shares-also?utm_source=rss_feed https://www.scmp.com/business/markets/article/1883617/china-stocks-end-lower-ipo-resumption-looms-hong-kong-shares-also?utm_source=rss_feed Thu, 26 Nov 2015 11:16:07 +0000 To lose one senior executive might be unfortunate; to lose more than a dozen is more than just carelessness, its deeply troubling. That’s the reaction in the Chinese securities industry to the news that Yim Fung, chairman of Guotai Junan Securities Hong Kong, has not been heard from in more than a week. A source close to the Shenzhen government told the South China Morning Post he may have fled as Yim’s family members and employer would have been notified by now if he was under detention. While... https://www.scmp.com/business/china-business/article/1883607/mystery-missing-chairman-guotai-junan-case-makes-western?utm_source=rss_feed https://www.scmp.com/business/china-business/article/1883607/mystery-missing-chairman-guotai-junan-case-makes-western?utm_source=rss_feed Thu, 26 Nov 2015 10:42:05 +0000 It’s been a choppy year for China’s stock market, and for the stock brokers, whose fortunes rise and fall with the equities tide, not to mention the shifting policy backdrop that seems to wobble according to the whims of authorities. China’s securities brokerages, operating in a highly competitive environment, earned handsome profits in the bull market that began late last year, thanks to commission fees and interest income on margin financing. They have also been among the biggest casualties... https://www.scmp.com/business/markets/article/1883515/china-brokerages-look-good-bets-amid-mounting-signs-mainland-shares?utm_source=rss_feed https://www.scmp.com/business/markets/article/1883515/china-brokerages-look-good-bets-amid-mounting-signs-mainland-shares?utm_source=rss_feed Thu, 26 Nov 2015 06:10:29 +0000 Hong Kong stocks finished with modest gains in the morning session on Thursday while Chinese shares eked out miniscule gains in what brokers say may be a short-lived rebound. The Hang Seng Index added 221.63 points, or 0.99 per cent, to 22,719.63, while the H-share China Enterprise Index up 71.27 points, or 0.70 per cent as of noon. Agriculture and mining led the gains, with both up 1.12 per cent. The A share market largely held steady after some swings into negative territory. The Shanghai... https://www.scmp.com/business/companies/article/1883438/hong-kong-china-stocks-crawl-firm-close-morning-session?utm_source=rss_feed https://www.scmp.com/business/companies/article/1883438/hong-kong-china-stocks-crawl-firm-close-morning-session?utm_source=rss_feed Thu, 26 Nov 2015 01:10:15 +0000 Hong Kong stocks dropped on Wednesday, extending a three-day losing streak, as mounting geopolitical tensions weighed on the markets amid renewed concerns of conflict in the Middle East a day after Turkey shot down a Russian warplane near Syria’s border. Mainland Chinese markets notched up gains, with the advance led by intelligent-machine stocks after China’s top leaders pledged their support for the robotics industry. Hong Kong’s Hang Seng Index fell 0.4 per cent to 22,498.00 and the Hang Seng... https://www.scmp.com/business/companies/article/1883093/hong-kong-stocks-slide-geopolitical-worries-china-index-led?utm_source=rss_feed https://www.scmp.com/business/companies/article/1883093/hong-kong-stocks-slide-geopolitical-worries-china-index-led?utm_source=rss_feed Wed, 25 Nov 2015 01:14:54 +0000 A Communist Party inspection team had been inside the mainland operations of Guotai Junan Securities for 10 days before the firm revealed it had lost contact with its Hong Kong chairman. The latest revelations come amid a new round of party “inspection tours” at state-backed enterprises and universities. The “tours” are a common tool used by Party officials to quiz employees on corruption or illegal allegations and come during a busy few months for inspectors after dozens of senior finance... https://www.scmp.com/business/companies/article/1882937/guotai-junan-under-scrutiny-more-week-chairmans-disappearance?utm_source=rss_feed https://www.scmp.com/business/companies/article/1882937/guotai-junan-under-scrutiny-more-week-chairmans-disappearance?utm_source=rss_feed Tue, 24 Nov 2015 12:45:45 +0000 Asia’s largest commodities trader, Noble Group, is grappling with fresh woes after another credit rating agency put the company on review for a potential downgrade to junk status. Standard & Poor’s said on Tuesday it had put Noble’s BBB- rating, the lowest investment grade, on a negative watch owing to weak liquidity and poor earnings visibility. “The liquidity position of Noble has deteriorated, in our view, because of a reduction in the Hong Kong-based commodity trader’s adjusted readily... https://www.scmp.com/business/companies/article/1882889/noble-group-faces-ratings-downgrade-junk?utm_source=rss_feed https://www.scmp.com/business/companies/article/1882889/noble-group-faces-ratings-downgrade-junk?utm_source=rss_feed Tue, 24 Nov 2015 11:29:09 +0000 Hong Kong stocks fell on Tuesday as resource shares took a hit after a stronger US dollar sent commodity prices to multi-year lows. The Hang Seng Index ended down 0.4 per cent to close at 22,587.63 and the Hang Seng China Enterprises Index gave up 0.7 per cent to finish the day at 10,156.63. Turnover shrank to HK$57 billion, compared with HK$62 billion in the previous session. The Shanghai Composite Index reversed early losses and edged up 0.2 per cent to close at 3,616.11, as gains in the... https://www.scmp.com/business/companies/article/1882480/hong-kong-stocks-fall-resource-shares-hit-weak-commodity-prices?utm_source=rss_feed https://www.scmp.com/business/companies/article/1882480/hong-kong-stocks-fall-resource-shares-hit-weak-commodity-prices?utm_source=rss_feed Tue, 24 Nov 2015 01:06:33 +0000 The crackdown in the mainland’s financial sector is intensifying, with Guotai Junan Securities reporting the head of its overseas subsidiary has gone missing. Sources said they believed the case was related to an earlier probe of a high-ranking official at the mainland’s securities watchdog. Hong Kong-based Guotai Junan International said it had not been able to reach its chairman and chief executive Yim Fung – also known as Yan Feng – since Wednesday. The company, part of the mainland’s... https://www.scmp.com/business/companies/article/1881926/head-hong-kong-based-brokerage-guotai-junan-international-missing?utm_source=rss_feed https://www.scmp.com/business/companies/article/1881926/head-hong-kong-based-brokerage-guotai-junan-international-missing?utm_source=rss_feed Mon, 23 Nov 2015 01:30:00 +0000 Chinese stocks ended lower on Monday, weighed down by concerns that the restart of share listings this week may divert some funds away from the markets, while Guotai Junan led financial companies lower after the brokerage said it has not been able to contact its chairman Yim Fung since November 18. Hong Kong’s Hang Seng Index finished down 0.4 per cent at 22,665.90, while the China Enterprises Index was off 0.7 per cent to 10,229.43. On the mainland, the Shanghai Composite Index dropped 0.6 per... https://www.scmp.com/business/companies/article/1881923/hong-kong-china-stocks-end-down-slightly-ipo-resumption-concerns?utm_source=rss_feed https://www.scmp.com/business/companies/article/1881923/hong-kong-china-stocks-end-down-slightly-ipo-resumption-concerns?utm_source=rss_feed Mon, 23 Nov 2015 01:08:08 +0000 Offshore yuan liquidity has been tightening this week after unconfirmed reports that mainland Chinese authorities implemented unconventional measures to crack down on cross border yuan arbitrage, which traders say is a highly unusual move given the currency is counting down to a key decision at the end of the month. The Hong Kong interbank offered rates (Hibor) for offshore yuan, or CNH, have been ticking up from Monday. The overnight rate spiked to 4.9 per cent on Wednesday and fell marginally... https://www.scmp.com/business/banking-finance/article/1881164/offshore-yuan-liquidity-crunch-pboc-reportedly-cracks-down?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/1881164/offshore-yuan-liquidity-crunch-pboc-reportedly-cracks-down?utm_source=rss_feed Fri, 20 Nov 2015 14:00:45 +0000 Global mergers and acquisitions (M&A) activity is entering a turning point, with Asian companies coming to the fore, having struck a total of US$ 1.2 trillion worth of deals this year. Asian firms, and especially Chinese ones, are increasingly betting on cross-border acquisitions for future growth, with 88 per cent of them identifying themselves as net buyers, according to a survey released on Thursday by JP Morgan. “To meet the demands of this more consumer-driven economy, and bring their... https://www.scmp.com/business/companies/article/1880574/global-mergers-and-acquisitions-tipping-point-asian-firms?utm_source=rss_feed https://www.scmp.com/business/companies/article/1880574/global-mergers-and-acquisitions-tipping-point-asian-firms?utm_source=rss_feed Thu, 19 Nov 2015 12:07:56 +0000 Guodian Technology & Environment Group, part of state-owned power giant China Guodian, said it would divest some solar production lines and see a material decline in annual profits as a result. Guodian Tech, one of China’s largest clean energy providers, told the Hong Kong stock exchange on Wednesday that it had decided to shut down certain businesses in its subsidiary GD Solar due to “operating and financial challenges”, such as low utilisation rate, high productions costs and difficulties in... https://www.scmp.com/business/companies/article/1880272/guodian-tech-divest-solar-production-lines-expects-hit-profits?utm_source=rss_feed https://www.scmp.com/business/companies/article/1880272/guodian-tech-divest-solar-production-lines-expects-hit-profits?utm_source=rss_feed Wed, 18 Nov 2015 14:22:06 +0000 A fresh bout of depreciation is in store for China’s yuan after the International Monetary Fund unveils a key decision at the end of this month over the currency’s pursuit of an elite currency club membership, analysts say. The IMF is expected to decide on November 30 whether to include the yuan in the Special Drawing Rights, a supplementary reserve asset and a quasi-currency rarely used in financial transactions. Expectations have risen to an all-time high that an inclusion –which would give... https://www.scmp.com/business/markets/article/1880116/fresh-bout-depreciation-awaits-yuan-after-imf-review?utm_source=rss_feed https://www.scmp.com/business/markets/article/1880116/fresh-bout-depreciation-awaits-yuan-after-imf-review?utm_source=rss_feed Wed, 18 Nov 2015 04:00:30 +0000 Swire Properties sold the last unit at Opus Hong Kong in Mid-Levels on Tuesday for HK$509.6 million, making it the most expensive apartment transaction in Asia. The sale came despite growing warnings by investment bank analysts that Hong Kong is heading for a home price correction next year in the face on an anticipated interest rate increase and slowing economy The 5,444 sq ft unit sold on Tuesday is on the 12th and top floor of the three-year-old Opus Hong Kong block at 53 Stubbs Road and... https://www.scmp.com/property/hong-kong-china/article/1879947/opus-hong-kong-flat-sells-asian-record-hk5096m?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/1879947/opus-hong-kong-flat-sells-asian-record-hk5096m?utm_source=rss_feed Tue, 17 Nov 2015 14:30:30 +0000 It has long been feared that a rebound in the equity market and a resumption of initial public offerings will spell the end of a bond rally in China. That scenario materialised with regulators reopening the floodgate for IPOs. The fixed income market though found something more profound to worry about. China’s bond market has revelled in a rare combination of macro trends this year, immense deregulation on new issuances, a monetary easing cycle and an equity rout that left investors with little... https://www.scmp.com/business/markets/article/1879228/chinas-bond-market-braces-uncertainty?utm_source=rss_feed https://www.scmp.com/business/markets/article/1879228/chinas-bond-market-braces-uncertainty?utm_source=rss_feed Mon, 16 Nov 2015 04:45:00 +0000 Hong Kong and Chinese markets ended the week lower as falling commodity prices and weak Chinese credit growth weighed on sentiment, with markets tipped to open lower Monday after mainland Chinese regulators announced late Friday a surprise tightening in margin requirements. Energy companies were hammered after crude oil prices fell to a two-month low amid a wider commodities sell-off after the US dollar strengthened ahead of a US rate rise expected next month. PetroChina fell 3.9 per cent to... https://www.scmp.com/business/companies/article/1878385/hong-kong-china-markets-lower-week-analysts-warn-likely-downbeat?utm_source=rss_feed https://www.scmp.com/business/companies/article/1878385/hong-kong-china-markets-lower-week-analysts-warn-likely-downbeat?utm_source=rss_feed Fri, 13 Nov 2015 01:00:15 +0000 It has been an incredibly hectic year for the People’s Bank of China as it constantly juggles different jobs, from fine-tuning monetary policy and liberalising the capital account to occasionally aiding other departments to arrest a stock market crash and installing curbs to stem capital outflows. But one thing seems to have been left out from its task list: enhancing communication and transparency with international markets and investors. Last week, the Chinese central bank published an undated... https://www.scmp.com/business/markets/article/1878134/irresponsible-or-amateurish-pbocs-blunder-dent-investors-confidence?utm_source=rss_feed https://www.scmp.com/business/markets/article/1878134/irresponsible-or-amateurish-pbocs-blunder-dent-investors-confidence?utm_source=rss_feed Thu, 12 Nov 2015 05:00:15 +0000 The yuan is facing a long march towards reserve currency status , a process that won’t be dramatically accelerated by its potential inclusion in an elite, yet symbolic , currency basket, experts say. Beijing is keenly anticipating an International Monetary Fund announcement this month on whether the yuan will be incorporates into its Special Drawing Rights basket, a quasi-currency rarely used in financial transactions. The IMF is yet to specify a date for such decision, which has fuelled... https://www.scmp.com/business/markets/article/1877880/sdr-inclusion-far-enough-increase-yuans-allure-investors?utm_source=rss_feed https://www.scmp.com/business/markets/article/1877880/sdr-inclusion-far-enough-increase-yuans-allure-investors?utm_source=rss_feed Wed, 11 Nov 2015 11:45:00 +0000 Aggressive Chinese company Anbang Insurance Group may have overextended themselves, an investment analyst says, following its purchase of a United States insurance company - the latest in a series of deals. Anbang announced on Tuesday it was buying US annuities and life insurance company Fidelity & Guaranty Life (FGL) for about US$1.6 billion. Reorient Group managing director Brett McGonegal said while it was important for experienced Chinese players to be active in the global market, Anbang had... https://www.scmp.com/business/companies/article/1877314/chinas-anbang-extends-us-reach-us16bn-purchase-fidelity-guaranty?utm_source=rss_feed https://www.scmp.com/business/companies/article/1877314/chinas-anbang-extends-us-reach-us16bn-purchase-fidelity-guaranty?utm_source=rss_feed Tue, 10 Nov 2015 02:00:15 +0000 While some of the world’s biggest banks and fund managers believe the renminbi is almost a shoe in to get into the International Monetary Fund’s elite currency basket this year, Beijing doesn’t seem to feel that inclusion is in the bag. In the detailed 13th five-year plan released this week after the ruling Communist Party plenum, a brief line caught the attention of Raymond Yeung, senior economist at ANZ. In the all-encompassing blueprint spanning the next five years, “pushing for the renminbi... https://www.scmp.com/business/companies/article/1876215/beijing-skittish-market-hot-renminbis-bid-join-imfs-sdr-basket?utm_source=rss_feed https://www.scmp.com/business/companies/article/1876215/beijing-skittish-market-hot-renminbis-bid-join-imfs-sdr-basket?utm_source=rss_feed Fri, 06 Nov 2015 05:45:30 +0000 China, Hong Kong and Singapore are set to register a sharp increase in company insolvencies this year and next, marking the first uptick in insolvencies around the region since the global crisis in 2008, according to a credit risk survey. China is expected to log a 25 per cent increase in company insolvencies in 2015 on year, and an additional 20 per cent on year increase in 2016, according to the Paris-headquartered credit insurer Euler Hermes. In Hong Kong insolvencies will rise 22 per cent in... https://www.scmp.com/business/article/1875999/business-insolvencies-set-rise-china-hong-kong-and-singapore-says-survey?utm_source=rss_feed https://www.scmp.com/business/article/1875999/business-insolvencies-set-rise-china-hong-kong-and-singapore-says-survey?utm_source=rss_feed Thu, 05 Nov 2015 10:00:15 +0000 A report that the Shenzhen-Hong Kong stock connect scheme would be launched this year sparked market rallies in the two cities on Wednesday morning, but the mood turned to disappointment in the afternoon and the Hong Kong rally lost steam when it emerged that the positive “news” was almost six months old. Just after markets opened on the mainland and in Hong Kong on Wednesday, an article written by People’s Bank of China governor Zhou Xiaochuan that was posted on the central bank’s website... https://www.scmp.com/business/markets/article/1875545/no-timeline-set-shenzhen-hong-kong-stock-connect-contrary-mistimed?utm_source=rss_feed https://www.scmp.com/business/markets/article/1875545/no-timeline-set-shenzhen-hong-kong-stock-connect-contrary-mistimed?utm_source=rss_feed Wed, 04 Nov 2015 02:30:30 +0000 The president of Agricultural Bank of China, one of the nation's top four state lenders, has been relieved of his duties as the Communist Party's campaign against graft widens to more financial institutions, a source familiar with the situation said. The source said Zhang Yun, who is also the bank's vice-chairman, did not attend a meeting called by the Central Commission for Discipline Inspection (CCDI) at the bank yesterday, while local media reports said Zhang had been taken away to assist... https://www.scmp.com/news/china/policies-politics/article/1875134/corruption-crackdown-agbank-president-relieved-his?utm_source=rss_feed https://www.scmp.com/news/china/policies-politics/article/1875134/corruption-crackdown-agbank-president-relieved-his?utm_source=rss_feed Mon, 02 Nov 2015 19:00:45 +0000 The yuan fell steeply even after the central bank raised the daily reference the most in a decade, in an indication of the volatility the currency is poised to experience ahead of a crucial review by the International Monetary Fund this month that will determine if it makes it to an elite club of reserve currencies. The People’s Bank of China fixed the yuan mid-price 341 basis points, or 0.54 per cent, stronger at 6.3154 against the US dollar yesterday, the biggest daily jump since July 2005.... https://www.scmp.com/business/markets/article/1874886/yuan-more-volatile-trading-imf-review-approaches?utm_source=rss_feed https://www.scmp.com/business/markets/article/1874886/yuan-more-volatile-trading-imf-review-approaches?utm_source=rss_feed Mon, 02 Nov 2015 04:00:15 +0000 Beijing on Friday reaffirmed the role of the Shanghai free-trade zone (FTZ) as a pioneering area for bold liberalisations including the full convertibility of the yuan, a fresh sign that freer cross-border capital flows are imminent. The People's Bank of China said that reforms, including the launch of a pilot scheme allowing individual investors to directly trade overseas stocks, were being studied to reinforce Shanghai's transformation into a global financial centre. The central bank said the... https://www.scmp.com/business/china-business/article/1874262/shanghai-ftz-new-reform-push?utm_source=rss_feed https://www.scmp.com/business/china-business/article/1874262/shanghai-ftz-new-reform-push?utm_source=rss_feed Fri, 30 Oct 2015 18:45:15 +0000 The yuan came down a notch in the global banking payments last month even as more foreign banks joined the chorus for its inclusion in an elite currency club. The yuan dropped back to the fifth position in global payments through Swift’s bank messaging system in September as an August devaluation and flaccid trade activities dampened confidence in the currency. It accounted for 2.45 per cent of global payments, slipping from a 2.79 per cent share in August, when it snatched the fourth place from... https://www.scmp.com/business/markets/article/1873623/share-chinese-currency-slides-global-payments?utm_source=rss_feed https://www.scmp.com/business/markets/article/1873623/share-chinese-currency-slides-global-payments?utm_source=rss_feed Wed, 28 Oct 2015 10:45:00 +0000 Mainland stocks bounced back on Thursday but trade was choppy, with traders turning their attention to the conclusion of a key Communist Party meeting in Beijing. Hong Kong stocks reversed opening gains and closed modestly lower, with locally listed mainland financial stocks down heavily on weaker-than-expected earnings. Shanghai stocks ended a seesaw session with modest gains, with the benchmark Shanghai Composite Index up 0.4 per cent to 3,387.32. The large-cap CSI 300 edged up 0.2 per cent to... https://www.scmp.com/business/markets/article/1873579/china-stocks-choppy-investors-await-policy-signals?utm_source=rss_feed https://www.scmp.com/business/markets/article/1873579/china-stocks-choppy-investors-await-policy-signals?utm_source=rss_feed Wed, 28 Oct 2015 09:45:00 +0000 A fresh round of monetary easing has fanned China’s already-sizzling bond market and provided some respite to leveraged capital that some observers warn could be the source of the next market bubble. The central bank’s double-cut on interest rate and bank reserve requirement ratios last Friday has cheered fixed-income investors. Yields for the benchmark 10-year government bond dropped by 8 basis points to 3.01 per cent in the two and half trading days after since the rate cut, well below the... https://www.scmp.com/business/companies/article/1873191/china-bond-market-feels-tail-wind-monetary-stimulus?utm_source=rss_feed https://www.scmp.com/business/companies/article/1873191/china-bond-market-feels-tail-wind-monetary-stimulus?utm_source=rss_feed Wed, 28 Oct 2015 03:48:45 +0000 Mainland Chinese stocks fell sharply on Wednesday, snapping a four-day winning streak, as fears mounted over the country’s economic slowdown after UBS slashed its forecast for China’s growth next year to 6.2 per cent from an earlier estimate of 6.5 per cent. Hong Kong stocks also declined, with turnover shrinking to the lowest level in eight months, as investors appeared reluctant to take major bets before the upcoming results of the Federal Reserve’s policy meeting and a key meeting of Chinese... https://www.scmp.com/business/companies/article/1873036/china-stocks-halt-four-day-win-streak-amid-renewed-growth-fears?utm_source=rss_feed https://www.scmp.com/business/companies/article/1873036/china-stocks-halt-four-day-win-streak-amid-renewed-growth-fears?utm_source=rss_feed Tue, 27 Oct 2015 07:46:38 +0000 Chinese markets squeezed out tiny gains on Tuesday after shaking off early sharp losses, as investors looked ahead to a highly anticipated Federal Reserve policy meeting later in the day and results of a key meeting of the Communist Party’s leadership discussing economic policies for the next five years. Shanghai stocks recovered from a slide in the morning and finished the day’s volatile session marginally higher, with the benchmark Shanghai Composite Index up 0.1 per cent at 3,434.34. The... https://www.scmp.com/business/companies/article/1872613/china-stocks-eke-out-gains-fed-meeting-china-policies-eyed?utm_source=rss_feed https://www.scmp.com/business/companies/article/1872613/china-stocks-eke-out-gains-fed-meeting-china-policies-eyed?utm_source=rss_feed Mon, 26 Oct 2015 07:30:45 +0000 Markets in the mainland and Hong Kong traded in opposite directions on Monday, in the first day of trade since the People’s Bank of China announced it would ease lending rates for a sixth time in less than a year. The Shanghai Composite Index rose for a third session in a row, closing up 0.5 per cent at 3,429.58, its highest close since late August. The large-company tracking CSI 300 also gained 0.5 per cent to 3,589.26. Turnover increased to 454 billion yuan, compared with 426 billion yuan in... https://www.scmp.com/business/global-economy/article/1872076/pboc-rate-cuts-lifts-china-markets-highest-close-two-months?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1872076/pboc-rate-cuts-lifts-china-markets-highest-close-two-months?utm_source=rss_feed Mon, 26 Oct 2015 00:30:00 +0000 The gap between the yuan’s onshore and offshore exchange rates widened this week after almost being bridged since late September, refuelling concerns that the mainland currency is coming under pressure to depreciate. Onshore yuan (CNY) was trading steady at around 6.35 to the US dollar this week, guided by a People’s Bank of China’s daily fixing rate that barely changed over the five-day period. However, offshore yuan (CNH) depreciated by 0.5 per cent this week, resulting in an enlarged gap with... https://www.scmp.com/business/global-economy/article/1871326/yuan-under-depreciation-pressure-onshore-offshore-gap-widens?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/1871326/yuan-under-depreciation-pressure-onshore-offshore-gap-widens?utm_source=rss_feed Fri, 23 Oct 2015 00:18:06 +0000 The yuan was trading almost flat in both onshore and offshore markets on Thursday as the People’s Bank of China weakened the midpoint by 24 basis points – 0.04 per cent – to 6.3497 against the US dollar. As of 11 am, CNY (onshore yuan) was trading 6.3485, with CNH (offshore yuan) trading at 6.3675. Both the pound and euro continued to strengthen against the greenback. The pound gained 0.1 per cent to 1.5432, and the euro gained 0.08 per cent to 1.1345. The yen also climbed 0.08 per cent to... https://www.scmp.com/business/markets/article/1870783/yuan-midpoint-24-basis-points-weaker-trading-flat-both-onshore-and?utm_source=rss_feed https://www.scmp.com/business/markets/article/1870783/yuan-midpoint-24-basis-points-weaker-trading-flat-both-onshore-and?utm_source=rss_feed Thu, 22 Oct 2015 00:05:12 +0000 Proposed tax changes will raise Hong Kong's appeal as a regional treasury centre for multinationals but will hardly tip the balance in the competition with Singapore, say banking and treasury experts. The Hong Kong government is drafting amendments to the Inland Revenue Ordinance to allow deduction of interest expenses from profits tax and halve the profits tax rate to 8.25 per cent for qualified corporate treasury activities. The changes are aimed at removing hurdles that have deterred... https://www.scmp.com/business/banking-finance/article/1870661/tax-reforms-seen-not-enough-boost-hk-appeal-treasury-hub?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/1870661/tax-reforms-seen-not-enough-boost-hk-appeal-treasury-hub?utm_source=rss_feed Wed, 21 Oct 2015 15:30:45 +0000 The People’s Bank of China set the midpoint of the yuan 141 basis points or 0.22 per cent stronger on Wednesday against the US dollar as the currency trades at its highest level in a week in both the onshore and offshore markets. The onshore yuan (CNY) touched 6.3438 to the dollar and the offshore yuan (CNH) was trading at 6.3627 against the greenback, both at weekly highs. The spread between CNY and CNH continues to run above 200 basis points, reversing a converging trend seen in the past two... https://www.scmp.com/business/article/1870270/pboc-sets-yuan-fix-currency-trades-strongest-week?utm_source=rss_feed https://www.scmp.com/business/article/1870270/pboc-sets-yuan-fix-currency-trades-strongest-week?utm_source=rss_feed Wed, 21 Oct 2015 00:46:38 +0000 When many things seem to be stalling in China, be it state sector reform or raising funds through the stock market, a new breed of securities that gained notoriety in the developed world in the last financial crisis is undergoing rapid expansion with a goal to facilitate the rebalancing of the mainland’s economic structure. Securitisation products, made from pooling certain assets such as loans and mortgages and repackaging them into interest-bearing securities, have been at the heart of China’s... https://www.scmp.com/business/article/1870232/securitisation-magic-wand-rebalance-chinese-economy?utm_source=rss_feed https://www.scmp.com/business/article/1870232/securitisation-magic-wand-rebalance-chinese-economy?utm_source=rss_feed Wed, 21 Oct 2015 00:45:30 +0000 Hong Kong-listed mainland developer Xinming China Holdings aims to provide one-stop service for Chinese mothers and children at its commercial properties with a new business model that covers everything from pregnancy to home-schooling teens. “My project is targeting that niche market [related to mothers, babies, and kids] because today’s commercial property development has huge problems of homogenisation,” said Chen Chengshou, chairman of Hangzhou-based Xinming China. “We must find our own... https://www.scmp.com/property/hong-kong-china/article/1869393/chinese-developer-xinming-gets-family-friendly-new-project?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/1869393/chinese-developer-xinming-gets-family-friendly-new-project?utm_source=rss_feed Tue, 20 Oct 2015 11:00:00 +0000