Yuan rises to 19-year high on PBOC rate fixing

The yuan rose to a 19-year high after the central bank raised its reference rate for the currency, and a report indicated that manufacturing expanded in March at the fastest pace in 11 months. The People's Bank of China on Monday increased the currency's fixing by 0.02 percent to 6.2674 per dollar, the strongest level since May 2012. The official Purchasing Managers' Index was 50.9 in March, the highest since April 2012 and above the 50 level that is the dividing line between growth and contraction.

GD Midea Holding hits limit after trading resumes

Electrical appliance manufacturer GD Midea Holding reached its trading limit immediately after it resumed trading on Monday. The Shenzhen-listed company halted trading at 10.1 yuan ($1.63) a share, an increase of 10.02 percent. In a statement filed to the Shenzhen Stock Exchange, the firm said it will issue new shares in the name of parent company Midea Group at a price of 44.56 yuan. GD Midea Holding went public in 1993 and suspended trading in August last year on rumors of the overall listing of its parent.

Heilongjiang plans heavy investment in Russia

Northeast China's Heilongjiang province is planning to increase investment in Russia by $1 billion by 2015, and $2 billion by 2020, local authorities said on Sunday. The province that borders Russia will also beef up its trade with the country, vowing to boost its trade volume to $26 billion by 2015, and $52 billion by 2020, sources with the provincial commercial department said. Heilongjiang accounts for about a quarter of China's total trade with Russia. Trade between the province and Russia in 2012 rose 12.2 percent year-on-year to $21.3 billion.

Baosteel leads industry with 41 percent income increase

Baoshan Iron and Steel Co Ltd, known as Baosteel, the nation's largest listed steel maker, has shown its resilience amid the economic slowdown, posting a 10.39 billion yuan ($1.67 billion) net profit in the 2012 fiscal year, a year-on-year rise of 41.1 percent. During the reporting period, Baosteel generated 191.5 billion yuan in revenue, down 14 percent year-on-year. The fall is mainly due to the divestment of stainless steel and special steel assets, as well as closure of its Luojing factory.

Overnight rate falls most in month as cash seen rising

China's overnight money-market rate slumped the most in a month on speculation cash supply will rise after banks met quarter-end capital requirements. The People's Bank of China drained 57 billion yuan ($9.2 billion) from the financial system last week, a sixth weekly withdrawal, according to data compiled by Bloomberg. "Liquidity will become loose once the quarter-end impact is over," said Liu Junyu, a bond analyst in Shenzhen at China Merchants Bank Co, the nation's sixth-biggest lender.

CP Lotus to open more stores in Beijing in 2013

Hong Kong-listed chain store operator CP Lotus Corp opened a new store in Beijing's Wangjing area on Sunday and said it will open more stores in the capital this year. It is the first time the company has presented its business model, which combines retail and one-stop daily services, to customers in Beijing. Customers will not only be able to enjoy a Lotus-branded store covering 36,000 square meters but also services such as catering services in the shopping mall.

Firms report bad debts due to Suntech's bankruptcy

Five listed companies in China have reported bad debts amounting to 426 million yuan ($68.6 million) due to the bankruptcy of Suntech Power Holdings Co Ltd, the former biggest solar equipment maker in the world, Beijing Business Today reported on Monday. Tianjin Zhonghuan Semiconductor Co Ltd was the hardest hit, with 176 million yuan in unpaid receivables from Suntech, causing losses of 90.38 million yuan. Xi'an-based Longi Silicon Materials Corp also announced a revised forecast for its financial results.

Listed agricultural firms hit by declining profits

Listed agricultural companies have reported declining profits and rising receivables. By Sunday, 26 such firms had released their annual reports for 2012. Of these, 21 reported increased revenues, two posted losses, while more than half, or 14, reported a decline in profits compared with 2011. Cofco Tunhe Co reported the largest losses of 730 million yuan ($117.5 million) in 2012. The company's annual report blamed its poor performance on the sluggish tomato market and suppliers affected by natural disasters.

Apple to face enhanced legal supervision in nation

China's commerce market watchdogs have called for tightened supervision of Apple Inc's disputed warranty policy in response to customers' complaints that the iPhone-maker adopted differential policies for repair and return services in China. The State Administration for Industry and Commerce said it has issued a notice asking local industry and commerce authorities to enhance legal supervision over Apple's unequal clauses in its warranty policies.

Rare-earth producer sees sharp drop in profit

Baotou Steel Rare-Earth (Group) Hi-Tech, the country's largest rare-earth producer, saw a sharp drop in net profit and revenue in 2012 due to falling demand and a slowing economy. Net profit fell 56 percent year-on-year to 1.51 billion yuan ($240 million) last year. Revenue fell 19 percent to 9.24 billion yuan as a result of continuous low demand in the rare-earth market and a drop in prices. The company is planning on revenue of 7.5 billion yuan in 2013.

China Daily - Agencies

(China Daily 04/02/2013 page14)