IPO approvals likely to resume next month

China is likely to resume approving initial public offerings on the mainland market at the end of July, sources told Reuters on Tuesday. Yao Gang, vice-chairman of the China Securities Regulatory Commission, told brokerages at a meeting on Tuesday "it is almost certain" the IPO market will resume at the end of next month, the sources, who were present at the meeting, said. They declined to be identified because they are not authorized to speak to the media. China froze the IPO market in late October as part of its efforts to clean up the equity market. It has been inspecting applicants' books for evidence of fraud.

Carbon dioxide permits trade 22% cheaper than in Europe

China traded its first carbon dioxide permits for 22 percent less than Tuesday's price in Europe as the nation inaugurated the Shenzhen Emissions Exchange as part of its plan to limit heat-trapping gases linked to climate change. The permits were priced from 28 yuan ($4.55) to 30 yuan a metric ton, according to Chen Hai'ou, chief executive officer and president of the exchange. That compares with 4.71 euros ($6.30) a ton on Tuesday for European Union permits on London's ICE Futures Europe exchange, the world's biggest carbon market by traded volume.

Coal imports fall in May, as policy worries continue

China's coal imports, including lignite, fell 3.9 percent in May from April as worries over import policies, high overseas prices and weak local demand curbed sales, data from the China Coal Transport and Distribution Association showed. China is the world's top coal consumer and traders said weak domestic demand and uncertainty over whether Beijing might limit imports of low-quality thermal coal to aid struggling domestic coal miners, led buyers to adopt the wary attitude. Limiting imports would largely hit Indonesian miners, whose sales to China have jumped after import taxes on lignite were removed in 2012.

Yuan declines by most in a fortnight on Fed taper fears

The yuan fell the most in almost two weeks as the People's Bank of China halted five days of strengthening the currency's fixing amid speculation the Federal Reserve will taper its bond-buying program. The central bank set the yuan's reference rate 0.09 percent weaker at 6.16510 per dollar, lowering it by the most since May 13. The Bloomberg JPMorgan Asian Dollar Index dropped for a second day before the Fed starts a two-day meeting. Currency strategists including those from Barclays PLC and Deutsche Bank AG have been advising investors to sell the yuan.

Steel prices drop despite decreasing global output

China steel prices have dropped in spite of decreasing global output and easing oversupply, according to an article on the website of the China Iron & Steel Association on Monday. The prices will fluctuate but largely remain low in the foreseeable future, the article said. Starting from the second quarter, overall demand has been rising while demand from industries with high steel consumption was lower than expected, the article said. At the end of May, the price of eight steel products monitored by CISA continued to drop.

Infor to increase workforce, develop in smaller cities

US software company Infor said it plans to double China revenue over the next three years. The company will increase its workforce in the country and develop business in smaller cities, said Tim Molyan, Asia-Pacific president of Infor. "China will generate about one-third of the company's revenue in the region in three years' time," he said, adding that it's easier for the New York-based company to get 25 percent year-on-year growth in China than in developed markets such as Australia and Japan. Founded in 2002, Infor has annual revenue exceeding $2.8 billion.

A-share sales in May hit four-year monthly high

Major shareholders with stakes of more than 5 percent, sold a net 24.7 billion yuan worth ($4 billion) of Chinese A shares in May, the most for a month since June 2009, according to UBS AG in a market note. The biggest sales were in computer-related shares, media and special equipment sectors, UBS said. Net stakes rose only in chemical raw materials and telecom operations, while the sell-off in smaller companies as a percentage of the free-float reached new post-2008 highs, it added. Insiders sold as the Shanghai Composite Index climbed 5.6 percent in May, the biggest advance since December, as more locked-up shares became tradable.

China Daily - Agencies

(China Daily USA 06/19/2013 page14)