Modern Land markets bonds

Modern Land China Co is marketing a sale of US dollar-denominated notes after investors withdrew a record amount from emerging-market corporate bond funds. The Beijing-based developer is offering five-year securities at a yield of about 14 percent, a person familiar with the matter said. Offerings in Asia outside Japan jumped by more than 14 times to about $5 billion last week compared with $350 million in the five business days prior, according to data compiled by Bloomberg. Emerging-market bond fund redemptions surged to a seven-week high while corporate bond outflows set a new weekly record, according to an Oct 25 e-mail from EPFR Global Inc, which tracks money flows.

GM plans Chevy push, SUV offerings

General Motors Co said it plans to step up promotions of the Chevrolet brand in China and boost the offerings of GM's sport-utility vehicles to defend its lead in the world's largest auto market. "We still have a lot of brand-building to do for Chevrolet and we will resource that appropriately and get that job done," Tim Lee, chairman for China, who was appointed to the newly created role in August, said in an interview in Shanghai last week. "If there were one thing that I wish we had done different, I wish we had a better offer" of smaller SUV models, Lee said.

BAIC Group to establish new base

Beijing Automotive Group signed a deal with local government authorities on Oct 26 for the creation of a new automobile industrial base in Dehong autonomous prefecture of Yunnan province. According to the agreement with Yunnan Jingcheng Group Co Ltd, the automaker will invest 3.6 billion yuan ($592 million) in the construction of the industrial base, which will take place in two phases. The first phase of the project will come into operation in 2015, and it will mainly produce commercial vehicles and sports utility vehicles. Once the second phase is completed, the facility will work at an optimal production capacity of 150,000 vehicles annually. A representative from BAIC Group declined to disclose further details of the industrial base's development.

Boeing signs with AVIC for 737 Max

Boeing Co has signed a multi-year contract with Aviation Industry Corp of China, or AVIC, to produce inboard flaps for Boeing 737 Max aircraft through Xi'an Aircraft Industry Co Ltd, making it the first Chinese supplier for the new aircraft, Boeing said on Monday. The contract will take effect from mid-2015 and part of the production process will take place at the manufacturing innovation center in Beijing. Boeing 737 Max is a new-engine variant of the current Boeing 737 and the first delivery of the 737 Max is planned for 2017. AVIC Xi'an Aircraft has been a Boeing supplier for more than 20 years and has contracts to produce the 747/767 Boeing converted freighter floor beams, 747 inboard flaps, and 747 trailing edge ribs.

Sohu posts Q3 loss of $65m

Sohu.com Inc - the owner of China's third-largest Web portal - posted a third-quarter loss because of a special dividend paid to certain shareholders of its search engine business. The loss was $65 million, the Beijing-based company said in a statement on Monday. Operating profit fell 18 percent to $52 million, compared with the average $56 million estimate of nine analysts compiled by Bloomberg. Sohu has invested in mobile apps and video content, buying programs including singing contest Voice of China, as more users surf the Web through smartphone and tablet devices. Tencent Holdings Ltd, Asia's largest Internet company, bought 36.5 percent of Sohu's Sogou search unit in September, an acquisition that also grants Sogou access to the larger company's mobile user base.

China Daily - Agencies

(China Daily USA 10/29/2013 page14)