China to boost asset-backed securities businesses

China may allow more firms to develop asset-backed securities businesses with the goal of boosting liquidity, the nation's market regulator said. The China Securities Regulatory Commission will lower its threshold for securities companies to undertake such businesses, the CSRC said on Tuesday. Asset-backed securities could be based on accounts receivable, credit assets, bonds, stocks and commercial properties, it said. The CSRC issued draft rules for the asset-backed securities business today and asked for public feedback, according to the statement. The CSRC will also allow more futures companies to open business offices nationwide. The regulator simplified review and approval proceedings for the office openings.

Nearly 10,000 new aircraft in region over next 20 years

Airlines from the Asia-Pacific region will take delivery of about 9,870 new aircraft in the next 20 years, comprising 35 percent of all new aircraft deliveries worldwide, Airbus SAS said in its market forecast for the region on Tuesday. The deliveries will be valued at $1.6 trillion, with the value accounting for 40 percent of the global market for new airliners, the manufacturer said. In the passenger market, the number of aircraft operated by carriers in the region is expected to rise from 4,300 to 10,440 in the next 20 years, based on an average annual traffic growth of 5.8 percent.

Mild increase seen in foreign investment in property

China may see a mild increase in property transactions involving international investors in 2013, fueled by the economic recovery, according to LaSalle Investment Management on Tuesday. It said, the best opportunities in China's real estate this year include stabilized modern warehouses, which offer compelling entry prices and secure income in many countries, with China at the top end of expected returns. In addition, the development of modern logistics facilities in select regions is very attractive.

Imported iron ore stockpiles at major ports pick up

Stockpiles of iron ore at 25 major Chinese ports picked up during the week ending on Monday due to increased business activities after Spring Festival, according to Xinhua's latest iron ore price report on Tuesday. Inventories of imported iron ore at the ports stood at 77.55 million metric tons, up 0.69 percent from a week earlier, the report said. The price index for 63.5-percent-grade iron ore imports rose one point to 156 points during the period. The index for 58-percent-grade imports also gained one point to 138 points. The report attributed the rising prices to steelmakers' growing purchase demand after Spring Festival, combined with tight supplies of the resource.

Land supplies targeted to tame housing prices

To maintain property market stability, the Chinese government is pressing local planning authorities to speed up plans for land supplies for housing, a media report said on Tuesday. The Ministry of Land and Resources ordered local branches to report this year's plans for residential land supplies by the end of March, China Business News reported, citing an anonymous official with the ministry. The ministry is expected to roll out the national plan in April, nearly a month earlier than last year, the paper said.

Money-market rate rises on bets of funds drain

The benchmark money-market rate in China jumped the most in two months on speculation the central bank will drain funds from the financial system to cap property prices and inflation. China may tighten monetary policy because of excessive market liquidity and rising real-estate prices, according to a front-page commentary in the China Securities Journal. The People's Bank of China sold 5 billion yuan ($803 million) of 28-day repurchase contracts at a yield of 2.75 percent on Tuesday, according to a trader at a primary dealer required to bid at the auctions.

BRICS bank set to focus on infrastructure

The planned BRICS development bank is expected to focus on financing infrastructure development projects, and providing auxiliary support for project preparation such as feasibility studies, according to a report by the South Africa-based Standard Bank on Tuesday. Representatives from the BRICS counties - Brazil, Russia, India, China, and South Africa - are expected to discuss the creation of the common development bank for the bloc at the Fifth BRICS Summit in Durban on March 26 and 27.

S&P keeps 'stable' outlook for banks on mainland

Standard & Poor's Ratings Services on Tuesday said it will maintain its "stable" outlook for banks on the Chinese mainland, Hong Kong and Taiwan. On the mainland, a slowdown in economic growth will continue to test banks' asset quality and profitability, while banks in Hong Kong and Taiwan should benefit from a more-visible economic improvement, it said. The agency expects the loan quality and profitability of the mainland banking sector to slip further in 2013.

Refinancing target climbs 30 percent year-on-year

Fifty-one A-share listed companies released private placement plans by Monday, aiming to raise a total of 79.09 billion yuan ($12.75 billion), the Securities Daily reported. The refinancing target is nearly 30 percent higher than in the same period in 2011, it said. The Shanghai Composite Index has climbed 2.5 percent this year, boosting investor confidence and opening the door for more Chinese enterprises to tap the capital market for fresh funds.

Commodity prices may drop if investment cycle turns

A downturn in China's investment cycle could push down global prices for some commodities, such as iron ore, by up to 12 percent, according to a new study by Standard & Poor's Ratings Services. The study found a strong correlation between movements in China's investment-to-GDP ratio and prices for commodities such as iron ore and coal. Under our downside scenario for China, prices for a range of commodities could decline by between 5 percent and 12 percent, averaging a fall of 9 percent, S&P said.

China Daily - Agencies

(China Daily 02/27/2013 page14)