Banks show record currency purchases

China's central bank and financial institutions bought a record net 683.7 billion yuan ($110 billion) of foreign currency in January, a possible signal of large inflows of funds amid optimism that growth is rebounding. Yuan positions accumulated from foreign-exchange purchases increased to 26.5 trillion yuan from December, data published by the People's Bank of China showed on Tuesday.

ZTE, Intel form collaboration

ZTE has signed a strategic collaboration agreement with Intel Corp focused on the new Intel Atom Processor Z2580 platform, sina.com reported. ZTE is currently working with Intel to develop unique smartphones based on the Intel Atom Z2580 processor.

Finance center rumor scotched

The Chinese government is currently not intending to engage in the large-scale real estate industry in Spain, the Global Times quoted the Chinese embassy in Spain as saying. Spanish media have reported that Chinese investors plan to spend 18 billion euros ($23.5 billion) to establish a large-scale financial center in Madrid, an investment project supported by the Chinese government.

Growth policies boosting shipping

China's infrastructure and housing plans will increase demand for ships hauling dry-bulk raw materials, according to Arctic Securities ASA. The Oslo-based investment bank is likely to raise its estimates for demand growth because of announcements at the National People's Congress, analyst Erik Nikolai Stavseth said on Tuesday. China will build 100 port berths, 80,000 kilometers of highways and 5,200 km of railroads in 2013, the National Development and Reform Commission said.

Money rate drops most in 13 months

China's benchmark money-market rate fell the most in 13 months on speculation a government plan to step up support for the economy will attract overseas capital, boosting cash in the financial system. The rate extended a decline from this year's highest level as Premier Wen Jiabao said in a report at the National People's Congress that China's budget deficit will increase 50 percent. The nation kept its expansion target for 2013 at 7.5 percent, the same as last year.

Mining mergers encouraged

A record wave of consolidation in China's mining industry is creating bigger companies that will have the muscle to compete with the likes of BHP Billiton Ltd for overseas acquisitions, according to a new study by Deloitte & Touche LLP. Even after Chinese domestic mining mergers reached $19.6 billion last year, double the tally for 2011, the government wants to see more. Easier access to capital and less Chinese competition for assets may make companies including China Minmetals Corp and Aluminum Corp of China more robust overseas buyers, the report said.

GM sales increase 7.9 percent

General Motors Co's China sales rose during the first two months of the year, extending the US carmaker's lead over Toyota Motor Corp in the world's biggest auto market, as demand for Japanese brands shrank. Combined sales in the country during January and February climbed 7.9 percent to 525,835 vehicles, Detroit-based GM said on Tuesday. In the past week, Japan's Toyota, Nissan Motor Co and Honda Motor Co have reported declines in January- to-February deliveries in China. The results show GM is gaining market share in both of the world's two biggest automobile markets.

Foreign carmakers must be more local

China should order foreign automakers to contribute more to develop local brands and limit those whose sole aim is to win more sales in the country, according to China FAW Group Corp. The government should also strictly enforce current rules against foreign automakers having more than two local partners to maintain market order, said Li Weidou, who heads FAW's export and import business.

BOC matches bond issue in Australia

Bank of China Ltd sold A$600 million ($614 million) of three-year notes, matching its biggest-ever sale denominated in the Australian currency, according to data compiled by Bloomberg. The bank's Sydney branch priced the floating-rate notes to yield 98 basis points more than the bank bill swap rate, after initially marketing them at a 100 basis-point spread, according to a statement from joint sale manager Commonwealth Bank of Australia.

China Daily - Agencies

(China Daily 03/06/2013 page14)