Updated: 2013-04-03 05:31
Copper tumbles to 7-month low as metals fall
Copper dropped to the lowest level in more than seven months as manufacturing in China and the US, the biggest users, grew less than forecast. Aluminum declined to the cheapest since October as metals fell. The copper contract for three-month delivery lost as much as 1.3 percent to $7,440 a metric ton on the London Metal Exchange, the lowest price since Aug 21. Aluminum slid as much as 0.6 percent to $1,893 a ton, the lowest since Oct 30. The bourse was closed on Monday and on March 29 for public holidays.
Repo rate increases on property curb worries
China's benchmark money-market rate rose toward a one-month high as cash demand increased ahead of a holiday and on speculation the central bank will tighten policy to cool the property market. The People's Bank of China will offer 30 billion yuan ($4.8 billion) of 28-day repurchase agreements on Tuesday, according to a trader at a primary dealer required to bid at the auctions. The PBOC's branches could "appropriately" raise requirements for down payments and interest rates on second-home mortgages, Shanghai Securities News reported on Tuesday.
Glencore extends Xstrata deadline amid China talks
Glencore International PLC, the largest publicly traded commodities supplier, pushed back the deadline to complete its $32 billion takeover of Xstrata Plc for a fifth time because it's yet to secure approval from China. Talks with the nation's regulator have been "constructive" and are in their final stages, Glencore said on Tuesday. A decision isn't expected before the planned April 16 deadline so the companies have agreed to extend the so-called long stop date for the acquisition to May 2.
Huadian to invest $242m in shale gas exploration
China Huadian Corp, a State-owned power producer, plans to invest 1.5 billion yuan ($242 million) in shale gas exploration this year after winning the most blocks in an auction in October. The company will spend the money on studying and testing its reserves, General Manager Yun Gongmin said in Hong Kong on Tuesday. Shale gas will help secure energy supplies as some of Huadian's power plants use natural gas as a fuel, he said.
Infant formula maker Yashili given New Zealand go-ahead
Infant formula giant Yashili International Holdings said on Tuesday it has received approval to become the latest Chinese player to invest in the New Zealand dairy industry. Company chairman Zhang Lidian said in a statement to the Hong Kong stock market that New Zealand's Overseas Investment Office, which considers all foreign investments valued at more than NZ$100 million ($83.96 million), has given consent to Yashili's plans to build a milk processing plant. The company reportedly plans to invest NZ$230 million in building the plant south of Auckland.
Emerging-market stocksdecline for second day
Emerging-market stocks fell for a second day as disappointing Chinese earnings and tensions on the Korean Peninsula overshadowed gains in eastern Europe. Zoomlion Heavy Industry Science and Technology Co sank the most since 2011 in Hong Kong after the four-day Easter holiday weekend. STX Offshore & Shipbuilding Co fell 15 percent and South Korean banks retreated after the shipbuilder said it is seeking to restructure debt.
Rebar prices rise as China heads for construction peak
Steel reinforcement-bar futures rose in Shanghai for the first time in four days as the lowest prices this year enticed purchases from construction and engineering companies preparing for China's peak building season. The contract for delivery in October gained 1.2 percent to close at 3,769 yuan ($608) a metric ton on the Shanghai Futures Exchange. Futures on Monday fell to the lowest closing price since Dec 13. Futures dropped 4.5 percent in the first quarter and are about 12 percent below their February high after the debt crisis in Cyprus renewed concerns about Europe.
Shanghai bank begins Taiwan currency exchange
Taiwan banknotes became available for over-the-counter exchange at the Shanghai branch of the Bank of Taiwan on Tuesday. The branch is the clearing bank for Taiwan dollar transactions on the mainland. The move came after an initial batch of notes worth NT$25 million ($837,143) were shipped directly to the branch on Feb 6. The mainland and Taiwan signed a currency-clearing memorandum in August 2012, agreeing to form a cross-Straits currency clearing mechanism.
Social security fund reports healthy investment return
China's social security fund manager said on Tuesday its investment revenues hit 64.5 billion yuan ($10.2 billion), with a realized rate of return on investment of 4.38 percent, a three-year high. The fund's managed assets topped 1 trillion yuan for the first time at the end of 2012, up 27.5 percent from a year earlier, according to statistics from the National Council for Social Security Fund. In 2012, the fund received central fiscal capital of 52.6 billion yuan, up 9 percent from the previous year, the statistics showed. The fund said it also registered a healthy investment return on Guangdong's urban resident pension fund, which was worth 100 billion yuan in 2012.
Regeneration expanded for aging industrial cities
An urban regeneration plan for aging industrial cities will be expanded as part of efforts to restructure the economy and promote more sustainable growth, the National Development and Reform Commission said on Tuesday. The plan, to run from 2013 to 2020, covers 95 prefecture-level cities and 25 municipalities and capital cities that were once the core of China's heavy industrial base. A blueprint issued in November 2011 covered 62 cities. The commission said investments will be made to help former industrial centers upgrade technology.
Mainland, Taiwan to further ease investment caps
The Chinese mainland and Taiwan have agreed to further ease investment caps in a bid to boost financial ties. The shares purchasing limit for mainland banks to buy listed companies in Taiwan has been raised to 10 percent from the previous 5 percent. Taiwan banks will be allowed to enter rural areas on the mainland, to provide financial services and business.
China Daily - Agencies
(China Daily 04/03/2013 page14)