State Grid to sell $2b in securities

China State Grid Corp plans to sell as much as $2 billion of securities. State Grid, the nation's largest power distributor, is marketing five, 10 and 30-year bonds, according to a person familiar with the matter, who asked not to be identified. China International Marine Containers Group Co also plans to sell notes in the US currency through a Hong Kong unit, a separate person said.

Demand to keep iron ore robust

Iron ore prices will remain strong into 2014 on sustained demand in China, the largest producer of steel, and as an increase in global supply takes longer than expected, according to a report by Morgan Stanley. While the price has averaged $135 a ton this quarter from $148 in the first three months, that's more than the bank's estimate of $130 for the April-to-June period, the report said.

Galaxy Securities raises $1.1b in IPO

China Galaxy Securities Co, a brokerage controlled by the country's sovereign wealth fund, raised about $1.1 billion in an initial public offering in Hong Kong, two people with knowledge of the matter said. The company, based in Beijing, sold 1.57 billion shares at HK$5.30 (68 US cents) apiece, the people said, asking not to be identified because the information is private.

VW eyes brand tie-up with FAW

Volkswagen AG, Europe's largest carmaker, plans to produce cars for a planned budget brand in China with joint-venture partner FAW Car Co, two people familiar with the matter said. VW aims to introduce the new low-cost marque in the world's largest auto market in about three years and may eventually expand it to more than one model, said the people, who asked not to be identified.

Corporate borrowing rising

Chinese corporate borrowing will probably exceed that of US companies within the next two years, according to Standard & Poor's. Non-financial institutions from the world's second-largest economy will need $18 trillion of debt during the five years ending 2017, the ratings company said in a report on Tuesday.

New loans could reach 900b yuan

New yuan loans extended by Chinese lenders in May might still reach about 900 billion yuan ($146 billion), analysts said. By Sunday, the four biggest State-owned banks in China had loaned 80 billion yuan for the month, signaling "a normal monthly pace", the Shanghai Securities News reported on Wednesday.

Giordano shutters 163 stores in Q1

Hong Kong casual-apparel retailer Giordano International Ltd closed 163 stores on the mainland in the first quarter this year, the company said on Tuesday. Sales on the mainland of HK$473 million ($60.9 million) in the first quarter represented a year-on-year decline of 5 percent.

Rail construction sees increase

Local governments are boosting rail construction, according to the 21st Century Business Herald. Guangzhou has invested about 300 billion yuan ($48.8 billion) in railway construction in recent years, according to a report by the Guangdong government submitted to Sheng Guangzu, general manager of China Railway Group Ltd.

BYD unveils HK electric taxis

BYD Co Ltd rolled out Hong Kong's first electric taxi fleet on Wednesday. The Hong Kong Taxi & Public Light Bus Association said it is renting from BYD an initial fleet of 45 taxis for HK$8,000 ($1,030) each per month, although only six vehicles had licenses so far. "We expect to increase the number of e6 taxis in Hong Kong to 5,000 in three years," said Liu Xueliang, general manager of BYD Asia Pacific sales.

China Daily-Agencies

(China Daily 05/16/2013 page14)