Five-year interest-rate swaps rise for third day

China's five-year interest-rate swaps rose for a third day on speculation that the People's Bank of China Governor Zhou Xiaochuan will favor higher money-market rates to remedy excessive lending. The seven-day repurchase rate, which measures interbank funding availability, may average 4 percent in the third quarter, compared with 3.63 percent in the past year, according to the median estimate in a Bloomberg survey of eight analysts. Asian swap rates advanced Monday after data last week showed employment in the United States increased more than forecast in June, bolstering the case for the Federal Reserve Board to cut stimulus.

Renault plans production venture with Dongfeng

Renault SA will sign an agreement this month to form an 11 billion yuan ($1.8 billion) venture in China with Dongfeng Motor Group Co to produce vehicles in the world's largest auto market, China Business News reported. The venture with Europe's third-largest automaker may be injected into Dongfeng's Hong Kong-listed unit, the newspaper reported on Monday, citing an unidentified executive at the Chinese company. Dongfeng spokesman Zhou Mi couldn't immediately comment. Renault's France-based spokeswoman Raluca Barb said the company is awaiting final approval from Chinese authorities.

Hyundai Heavy aiming to lift ship prices during H2

Hyundai Heavy Industries Co, the world's biggest shipbuilder, plans to raise prices as demand for fuel-efficient vessels helps it skirt the global supply glut hurting Chinese yards. Orders may exceed this year's target of $11.3 billion, with about 60 percent of that already met, Ka Sam Hyun, executive vice-president in charge of ship sales, said on July 3. The Ulsan, South Korea-based company plans to raise prices in the second half, he said. "The big focus right now is on fuel efficiency," Ka said. "At a time when prices have fallen so much, shipping lines seem to be willing to pay a bit more to get better performing ships on time. This is why the top-tier shipyards will benefit."

Euro-Asia Forum in Xi'an to host 2,500 participants

The fourth Euro-Asia Economic Forum will open on Sept 26 in Xi'an, Shanxi province. Approved by the State Council in 2007, the forum, which ends on Sept 28, is held every two years in Xi'an. This year, more than 2,500 participants will discuss a range of topics, including energy, financing, tourism, high-tech and education. Experts and specialists from the Shanghai Cooperation Organization will play a key role. Chen Yuan, vice-chairman of the National Committee of the Chinese People's Political Consultative Conference, said that the forum has contributed to diversifying regional cooperation and removing barriers.

NZ urged to reverse meat industry deregulation

The New Zealand government was urged Monday to reverse its deregulation of the meat processing industry after meat exports to China were blocked for the second time this year. The main opposition Labor Party suggested the government was lacking "the confidence of Chinese authorities" after container-loads of New Zealand meat were stopped at Dalian, a port city in northeast China, because they lacked proper certification.Primary Industries Minister Nathan Guy and Food Safety Minister Nikki Kaye said that they had only become aware two days previously of new Chinese rules requiring veterinarians to be directly linked to the last site the meat was at before export.

Natural gas price increases to boost firms' profits

A natural gas price increase kicking off in China on Wednesday will significantly boost the profitability of Chinese gas companies, Moody's Investors Service said on Monday. The rating agency said the price rise is credit positive for China's upstream natural gas suppliers, particularly China National Petroleum Corp, which supplies around 70 percent of the natural gas that the country consumes. The National Development and Reform Commission said on June 28 it will increase the wholesale price of natural gas for non-residential users and expand the use of a market-based pricing mechanism.

Microsoft's investment arm set for first deal in China

The investment arm of Microsoft Corp has entered the Chinese market, and the company said the first acquisition might be completed soon. Microsoft Ventures, launched at the end of June by Microsoft, aims to provide support to startups through "mentorship, technology guidance, seed funding, joint selling opportunities, and other benefits", Rahul Sood, general manager of Microsoft startups, wrote in a blog. Lin Weiqian, China president of Microsoft Ventures, said the newly established company integrates the BizSpark program and the Bing Fund seed investment initiative under one umbrella to make things as easy as possible for entrepreneurs.

China Daily - Agencies

(China Daily USA 07/09/2013 page14)