Top foreign creditors show concern on US default

China and Japan, which together hold more than $2.4 trillion in US Treasury securities, raised pressure on the US to resolve a political impasse on its debt ceiling that threatens to destabilize global financial markets. Japan must consider the impact of any default on its bond holdings, even as the US will probably avoid a fiscal crisis, Japanese Finance Minister Taro Aso said on Tuesday at a news conference in Tokyo. Chinese Deputy Finance Minister Zhu Guangyao said on Monday that the US should prevent a default, the People's Daily reported. Any failure by the US to honor its debt obligations would damage the dollar's status as the world's reserve currency, with implications for investors globally. A shift in asset allocation by China, Japan or other major holders of US government securities could push up US interest rates and cause swings in global currency markets.

China Properties offering dollar bonds as yields down

The Hong Kong based China Properties Group Ltd is marketing US dollar-denominated bonds as borrowing costs for high-yield corporate issuers in Asia near the lowest since July. The company, which develops residential and commercial properties in China, is offering five-year notes to yield about the high 13-percent area, a person familiar with the matter said on Tuesday. Yields on non-investment grade issues in Asia fell to 7.65 percent on Monday, close to the seven-week low of 7.60 percent reached on Sept 19, JPMorgan Chase & Co indexes show.

Large amounts of capital flow to fund sector: CSRC

Capital from many sources is flowing into China's fund sector, with the first insurance company-invested fund company waiting to be approved and China International Capital Corp Ltd applying to launch its own fund company. The monthly public notice list of fund company applications released by the China Securities Regulatory Commission at the end of September showed the application for the launch of the fund company by China Life Insurance Co and AMP Capital Investors Ltd was approved within two months. The China Life and AMP Capital Investors Fund will be the first fund company launched by insurance asset management companies directly in China.

The founder is China Life with a share of 85.03 percent. AMP Capital will be a foreign shareholder of the company, which is registered in Shanghai with capital of 588 million yuan ($96 million), making it the fund company with the highest registered capital.

Dalian Locomotive wins contract from NZ's KiwiRail

Dalian Locomotive, a subsidiary of the China North Locomotive and Rolling Corp, has won a contract to supply a further eight Class DL diesel locomotives to KiwiRail of New Zealand, taking its total exports to the country to 48, according to CNR Dalian. CNR Dalian has also signed a maintenance contract to support the DL fleet, which is China's first deal that involves offering maintenance services beyond manufacturing to a developed country. Under the contract, the eight locomotives will be delivered by the end of 2014. KiwiRail ordered an initial 20 Class DL locomotives in September 2009, in what was CNR's first order to supply diesel locomotives to a Western country.

Liaoning exports of farm products hit $3.3 billion

Agricultural product exports from Liaoning province totaled $3.31 billion in the first eight months of 2013, up 10 percent year-on-year, according to the local government. During the period, total exports of marine products reached $1.54 billion, an increase of 5.9 percent from last year. That category accounted for 46.5 percent of its total agricultural exports. Total food exports reached $450 million, up 14.5 percent. Agricultural product exports from the province's private companies accounted for 54.1 percent of the total.

Ningbo to host shipping conference in early Nov

The World Shipping (China) Summit 2013 will be held in Ningbo from Nov 6-8. Centered upon the theme of "Responding to New Realities", the summit will provide a high-profile platform for industry leaders and shipping professionals to discuss issues of concern. It will also address challenges faced by the industry to achieve healthy, sustainable and long-term development goals. The summit is attended each year by hundreds of leaders from the maritime world, including shipping carriers, port operators, shipbuilders, government officials, scholars, bankers, lawyers and other related industry professionals.

Banks to trade treasury futures contracts

Relevant government departments have reached a consensus to allow banks and insurers to trade treasury futures, the China Securities Journal reported on Tuesday. The authorities are discussing technical issues such as "whether institutional investors should have their own seats or trade through futures companies", a person close to the matter told the journal. The list has yet to be announced since the regulations have not been completely put in place, the person added.

China Daily - Agencies

(China Daily USA 10/09/2013 page14)