2013-14 soybean imports predicted to weaken

Soybean imports by China, the world's biggest buyer, are predicted to be lower than official US forecasts, deepening a glut and weighing down prices as global reserves reach record highs. Inbound shipments will be 63 million metric tons in the 12 months starting Oct 1, less than the US Department of Agriculture's June 13 projection of 69 million tons, according to the median of 14 estimates of China-based crushers and researchers by Bloomberg. Demand for soybean meal for animal feed plunged in China in April and May as farmers culled poultry following an outbreak of the H7N9 bird flu virus that led consumers to shun chicken.

ADBC cuts bond sale target by 31 percent

Agricultural Development Bank of China Co has scaled back the size of two bond offerings being made on Tuesday by 31 percent as the worst cash crunch in at least seven years curbs demand for the securities. The Beijing-based policy bank said it will sell up to 8 billion yuan ($1.3 billion) of three-year notes, down from 13 billion yuan previously, according to a statement on ChinaBond, the nation's biggest debt clearing house.

Latest pollution measures most 'aggressive' yet

A Chinese government plan to fight air pollution, announced last week, marks the country's "most aggressive" push to address its smog problem to date, according to Ma Jun, Deutsche Bank's chief economist for Greater China in Hong Kong. Ma said in a note that the 10 measures, which include stricter controls on coal-burning emissions and road traffic, will push up the cost of burning the fuel, push energy consumers to use cleaner energy sources and result in more public-transport use. "It is the most aggressive policy effort to address air quality issues in China's history," Ma said. "We believe these measures represent the beginning, rather than the full package, of China's anti-air pollution campaign."

Money-market rate drops due to decline in deposits

China's money-market rate dropped for the first time in three days on speculation the central bank has returned cash to lenders due to a decline in deposits. Chinese banks meet reserve-requirement ratios by parking more funds with the People's Bank of China on the 5th, 15th and 25th of each month if their deposit holdings expand, while they get refunds if savings decline. "There is a temporary improvement in money supply," said Song Qiuhong, a bond analyst at Foshan Shunde Rural Commercial Bank Co in Foshan, a city in Guangdong province.

Rising currency could hinder Brazil's iron-ore industry

Vale SA, Brazil's largest exporter, said further local currency depreciation could counter cost rises and a slowdown in Chinese iron-ore demand as it seeks to recapture market share from Rio Tinto Group and BHP Billiton Ltd. The real, the worst-performing emerging-market currency over the past three months, is likely to weaken to about 2.40 from 2.15 per US dollar, bolstering Brazil's competitiveness, said Jose Carlos Martins, Vale's executive director for ferrous and strategy. China's iron-ore and steel demand growth is set to slow to about 5 percent from 10 percent in the first five months of the year, he said.

Banks buy more forex in May than they sell

Chinese banks bought more foreign currency from clients than they sold in May, although the surplus was less than that of previous months, indicating relieved pressure from capital inflows. The forex surplus hit $17.2 billion in May, marking the ninth straight month of surplus in bank-to-client forex transactions, the State Administration of Foreign Exchange said. The surplus was far less than those recorded in the first four months of the year, and roughly half of the $34.3 billion surplus recorded in April. Individuals and institutions exchanged $150.5 billion in foreign currency for yuan through Chinese banks while buying $133.3 billion in foreign currency from financial institutions in May.

Govt to promote renewable energy for heating sector

The National Energy Administration is to promote solar, geothermal and biomass heating and aims to put it into practice before the end of the year, Shanghai Securities Journal has reported. A draft of the program said 50 million tons of coal equivalent, or TCE, will be replaced by renewable energy by 2015 to generate electricity, up from 30 million tons currently. The number is set to climb to 100 million tons by 2020. China has set a target of keeping total energy consumption below 4 billion tons of TCE by 2015, with electricity consumption below 6.15 trillion kilowatt hours.

Central Huijin purchases 'to boost A-share market'

Increasing purchases in the A-share market by a company linked to its sovereign wealth fund will benefit the stock market after it dropped to a six-month low last week, experts said. The increased investment into the A-share market by Central Huijin Investment Co, China's main holding company for State-owned financial firms, will boost market performance, financial news portal Caijing said. Central Huijin bought shares in Everbright Bank and New China Life Insurance on the secondary market in Shanghai on Thursday and Friday, the two companies said in separate announcements.

KPMG downplays China's investment in New Zealand

A survey by accounting firm KPMG New Zealand has claimed that Chinese investment in New Zealand is actually less than believed. Through a review of the New Zealand government's Overseas Investment Office approvals from July 2010 to December 2012, KPMG partner, corporate finance, Justin Ensor said the study found that Asia accounted for only 16 percent of gross foreign direct investment, while Australia remains New Zealand's biggest single source of capital, at 46 percent, and North America, Europe and Australia combined accounted for approximately 70 percent.

Hainan's duty-free sales help boost tourism income

Revenue at the two duty-free shops in Hainan province hit 5.02 billion yuan ($818.76 million) as they attracted 2.06 million people in the first half of 2013, Xinhua has reported. The duty-free policy, introduced in 2011, helped boost the province's tourism income by 17 percent year-on-year in 2012. Every traveler to the island aged 16 or above can spend up to 8,000 yuan on duty-free goods twice a year. Residents also can avail themselves of duty-free shopping covering 21 categories, including cosmetics and watches.

Fidelity's Bolton to retire in March next year

Anthony Bolton, one of the United Kingdom's most successful fund managers, will retire as portfolio manager of Fidelity China Special Situations Plc in March 2014. Bolton, 63, will be succeeded on April 1, 2014, by Dale Nicholls, Fidelity said in a statement on Monday. The handover will take place almost four years after the closed-end Fidelity China Special Situations became the largest China equity fund to be listed on the London Stock Exchange. During his 28 years at the helm, Bolton delivered average annual returns of 19.5 percent, according to Morningstar Inc.

China Daily - Agencies

(China Daily USA 06/18/2013 page14)