Komatsu chief predicts end to falling China sales

Komatsu Ltd, the Japanese maker of construction equipment whose sales have fallen for seven consecutive quarters in China, expects demand from the country to recover this year, aided by stimulus spending. The world's top producer of diggers forecasts China demand to grow 5 to 10 percent in the year starting April 1, President Kunio Noji said. The yen's slide to its lowest level since May 2010 will also help boost competitiveness, he said. "Our company will see an immediate earnings improvement once demand recovers because we don't have any excess stockpiles and are able to speed production."

Hotline launched to curb illicit bank operations

A whistle-blowers' telephone hotline has been launched in Shanghai in an effort to clamp down on banking operations that breach regulations. The China Banking Regulatory Commission Shanghai Supervision Bureau said on Monday that as many as 74 banks and the city's Banking Association had signed up for the service. Banks in Shanghai have been introducing an increasing number of wealth management products over the past year, which have attracted balances of about 7 trillion yuan ($1.12 trillion), the commission said in a statement.

Jingdong Mall raises 700 million from investors

Chinese online retailer Jingdong Mall said on Sunday that its cash reserve has topped 15 billion yuan ($2.4 billion) after the Beijing-based company raised about $700 million from international investors. "With the new funding in place, Jingdong will be able to focus on long-term development," said Liu Qiangdong, the company's founder and CEO. Jingdong said it raised around $700 million from Kingdom Holding Co, Canada's Ontario Teachers Pension Plan, and other current shareholders. Jingdong is the nation's second-largest business-to-customer platform after Tmall, owned by Alibaba Group Holdings Ltd.

GM buys back 1 percent stake in SAIC joint venture

General Motors Co, which runs 12 joint ventures in China, said it has repurchased a 1 percent stake in its joint venture with Chinese partner SAIC Motor Corp Ltd, which it had sold before its 2009 bankruptcy filing. The move will bring GM's ownership of Shanghai General Motors Co Ltd back to 50 percent, according to a filing with the US Securities and Exchange Commission on Friday. GM paid $119 million for the 1 percent stake, exceeding its share of the 1 percent interest in SGM's net assets by $82 million, which comprises the plant, property, equipment and intangible assets, the filing showed. In February 2010, GM sold the 1 percent stake to SAIC for $85 million.

China Investment invests in Moscow Exchange

China Investment Corp, the country's sovereign wealth fund, has invested in the pre-IPO of the Moscow Exchange, fund Chairman Lou Jiwei said on Sunday. "This is a financial investment rather than a strategic one, and we'll sell the investment at the appropriate time," Lou was cited by the Beijing Youth Daily as saying. He declined to provide the exact amount invested. The Moscow Exchange floated shares valued at $500 million on Friday. Financial market sources told Reuters on Thursday that the flotation had attracted foreign investors, including CIC, while Russia's state private equity fund RDIF also helped to fill the order book.

China increases US Treasury bond holdings by $19.7b

China remains the largest foreign creditor of the United States after it increased its holdings of US Treasury bonds by $19.7 billion in December, the US Treasury Department said on Friday. December was the third consecutive month in which China increased its holdings of US Treasury securities. A total of $1.202 trillion in US treasury bonds were held by China at the end of 2012, compared with $1.183 trillion in November, and $1.151 trillion at the end of 2011. Japan, the US' second-largest creditor, also increased its holdings of US Treasury bonds, to $1.12 trillion in December.

Retail sales surge during Spring Festival

Beijing retail sales rose 8.2 percent year-on-year to 1.06 billion yuan ($169.8 million) during Spring Festival, the China Chain Store and Franchise Association said on Sunday. Outside the capital, the country's retail sales were also greatly boosted by the holiday shopping spree, the Ministry of Commerce said. The revenue of shops and restaurants across the country hit 539 billion yuan last week, a year-on-year increase of 14.7 percent. Food sales were up 9.8 percent, jewelry sales surged 38.1 percent and garment sales rose 6.3 percent, the ministry said.

Aluminum price drops from six-week high after holiday

Aluminum in London declined from a six-week high as markets in Shanghai reopened after a week-long holiday and investors focused on expectations for higher production of the material in China. Metal for delivery in three months fell as much as 1.1 percent to $2,145 per metric ton on the London Metal Exchange after climbing to $2,174 on Feb 15, the highest since Jan 3. "Expectations for further gains in aluminum production in China mean Shanghai prices are ignoring the gains in London last week," said Fang Junfeng, an analyst at Shanghai CIFCO Futures Co.

ABC unit to add traders as Dim Sum sales rise

ABC International Holdings Ltd, a unit of China's third-largest bank, plans to hire more traders for yuan bonds in Hong Kong, betting issuance will rise further after tripling in two years to a record in 2012. The overseas investment-banking arm of Agricultural Bank of China Ltd is seeking a bigger share of the Dim Sum debt market after climbing to the fifth rank among underwriters this year from No 10 in 2012, according to data compiled by Bloomberg. Yuan debt sales, excluding certificates of deposits, are set to surpass last year's 112 billion yuan ($18 billion), with more State-owned companies tapping the offshore market, the Chinese lender predicts.

EU to tax more imports of Chinese steel pipes

The European Union has threatened to expand tariffs on steel pipes from China to curb import competition for EU producers. The EU opened an inquiry into whether Chinese makers of seamless pipes and tubes that have an external diameter exceeding 406.4 millimeters and that aren't made of stainless steel sell them in the 27-nation bloc below cost, a practice known as dumping. The EU already imposes anti-dumping duties on imports of Chinese seamless pipes and tubes with an external diameter not exceeding 406.4 millimeters and of stainless steel seamless pipes and tubes.

China Vanke makes first foray into US market

China Vanke Co, the biggest developer listed on Chinese exchanges, has entered a property venture in San Francisco, its first foray into the United States real estate market. The company signed the deal on Feb 12, Chairman Wang Shi wrote on his micro blog on Sina Weibo. Vanke bought 70 percent of 201 Folsom Street, a mainly high-end residential project owned by Tishman Speyer Properties LP, Jinsong Du, a Hong Kong-based property analyst at Credit Suisse Group AG, wrote in a note to clients, citing information from Vanke. The development will comprise about 669 residential units, Credit Suisse said.

China Daily - Agencies

(China Daily 02/19/2013 page14)