Government to boost land supply for housing

China will substantially boost its land supply for residential houses in 2013 to meet rising demand for homes, according to the nation's latest land supply plan. China plans to raise its land supply for new homes in 70 major cities to 50,300 hectares, 1.2 times that the average level of the past five years, the Ministry of Land and Resources said in a statement on Tuesday. Land supply nationwide rose to 1.5 times that of the average level of the last five years to 150,800 hectares, of which land for small-unit housings accounted for 79.4 percent, the statement said. Land supply for public-funded housing reached 41,500 hectares.

Kazakhstan may favor China for oilfield on loans

Kazakhstan may favor China to acquire a stake in the country's largest oilfield because it can offer loans as part of the deal, said Dominic Lewenz, an analyst at Visor Capital. The Kazakh government is ready to exercise an option to buy a stake in place of India's Oil & Natural Gas Corp before selling the asset on to one of China's State-run producers, people with knowledge of the matter said. The Indian company agreed to buy ConocoPhillips' 8.4 percent holding in the Kashagan field for $5 billion in November.

Glencore-Xstrata deal wins regulatory approval

Glencore International PLC, the world's largest publicly traded commodities supplier, cleared the final regulatory hurdle in its $30 billion takeover of Xstrata Plc after gaining approval from Chinese authorities, according to three people with knowledge of the matter. China's Ministry of Commerce allowed the takeover to proceed, with an announcement expected on Tuesday or Wednesday, the people said. The deal won agreement from South Africa's antitrust regulator in January and the European Union in November.

Nation's credit outlook cut to stable from positive

Moody's Investors Service lowered its outlook for China's credit rating to stable from positive, saying the nation has made less progress than anticipated in reducing risks from local government debt and credit expansion. "Structural reforms" under the new leadership may not be sufficient over the next 12 to 18 months to justify an upgrade, Moody's said on Tuesday as it affirmed China's Aa3 rating, the fourth-highest level. Moody's also cut the outlook on Hong Kong's Aa1 rating to stable.

Kimberly-Clark plans $100m Nanjing center

Kimberly-Clark Corp, the US-based personal care product company, plans to build a $100 million manufacturing center in Nanjing, Jiangsu province. It will occupy about 100 hectares and have fully automated production lines. The center will primarily manufacture Huggies-brand diapers and training pants to meet growing demand in China. The site will eventually become one of the firm's largest and most advanced manufacturing centers, the company said.

PV product manufacturersto face strict new measures

Companies hoping to manufacture photovoltaic products, such as solar panels, will have to meet strict new criteria, according to the China Securities Journal on Tuesday. It said the criteria, to be issued by the Ministry of Industry and Information Technology, will boost the industry's development, and companies that fail to meet the criteria will find it hard to get bank loans or land. Experts said the measure will help firms that are well organized and efficient to gain new markets.

Equity limit raised in insurers to attract investors

China will allow shareholders in the country's insurers to own stakes as large as 51 percent, increasing the limit to attract strategic investors and boost the industry's capital strength. The combined holdings of a single investor and its affiliated parties can exceed 20 percent if they meet requirements including total assets of at least 10 billion yuan ($1.6 billion), the China Insurance Regulatory Commission said on its website on Tuesday. "Appropriately" loosening equity holdings in Chinese insurers can help companies attract strategic investors, enhance shareholder responsibilities and improve the efficiency of corporate governance, the regulator said.

Chinese companies snapping up overseas brands

Chinese firms investing overseas are increasingly buying businesses with technology, brands and know-how as they move up the value chain and counter falling margins at home, private equity fund A Capital said. Europe, the top destination for Chinese investment last year, will remain attractive due to moderate valuations, the absence of regulatory hurdles and the "strategic match" with areas of interest to China such as services, A Capital, which is based in Brussels and Beijing and backed by China's sovereign wealth fund, said in a report on Tuesday.

China Daily-Agencies

(China Daily 04/17/2013 page14)