Govts & policies

Central bank suspends open-market operations

The central bank, the People Bank of China, refrained from conducting open-market operations on Tuesday, citing weak demand from traders amid ample liquidity in the banking system. This is the first time that the monetary authority has announced a suspension since it began conducting the operations daily on Jan 29. The pause comes after the central bank surprised markets on Monday with a 0.5 percentage point cut to the reserve requirement ratio for lenders.

China to up subsidy for coal-bed methane

The subsidy given to coal-bed methane exploration will increase in the five years to 2020. The country will raise the subsidy for coal-bed methane to 0.3 yuan (5 cents) per cubic meter from 0.2 yuan from 2016 to 2020 to encourage the development of natural gas extracted from coal deposits, said the Ministry of Finance. It said it may adjust the subsidy at an appropriate time based on industry development, exploration cost and the market situation. China cut natural gas prices for business and industrial users by about 25 percent in November to boost use of the fuel in its energy mix and reduce pollution.

Companies & markets

Lloyd's set to double business in nation

Lloyd's of London insurance market expects its China arm to more than double its insurance premiums this year to 2.5 billion yuan ($305.83 million) compared with 2015. China's insurance market has become one of the world's largest in recent years. Lloyd's China reaped almost 900 million yuan of insurance premiums in 2015, but expects 2.5 billion yuan by the end of this year, Lloyd's Chairman John Nelson said, adding it was talking to a number of Chinese insurers who were interested in joining the platform.

ENN agrees to LNG purchase from Origin

ENN Energy Holdings Ltd has agreed to buy liquefied natural gas from Australia's Origin Energy Ltd as the Chinese distributor turns to overseas supplies with at least its third deal this year and the fuel's price plummets. ENN will receive 500,000 metric tons of LNG annually over five years under the preliminary accord, Origin said on Tuesday. It follows ENN's agreement in January to buy LNG from Chevron Corp's Gorgon project in Australia and another accord announced last month with Paris-based Total SA.

Macao casino revenue downturn eases

Macao's casino market shrank less than analysts' estimates in February, as an increased number of tourists to the city over the Lunar New Year holiday helped ease a slump that has lasted for almost two years. Gross gaming revenue was $2.4 billion, according to data from Macao's Gaming Inspection and Coordination Bureau. The 0.1 percent decrease was the smallest since the downturn began, and compares with the median estimate of a 2 percent drop from six analysts surveyed by Bloomberg and the 21.4 percent decline in January.

Evergrande buys 5.6% stake in Shengjing

A subsidiary of Evergrande Real Estate Group Ltd has paid HK$3.89 billion ($500 million) for a 5.59 percent stake in Shengjing Bank Co, in the latest purchase by the Chinese developer that is piling on debt for acquisitions. Guangzhou-based Evergrande acquired 324 million shares, it said in a statement to the Hong Kong stock exchange. It bought 314 million shares through block trades and 10 million shares on the open market. The purchase is the latest in a string of deals by Evergrande, which paid HK$12.5 billion to buy Mass Mutual Tower in Hong Kong in November from Chinese Estates Holdings Ltd, a record price for a commercial building in the city.

Around the world

Chevron 'considering' Asian asset sale

Chevron Corp is considering a sale of its geothermal assets in Asia as it seeks to counter a slump in energy markets, according to industry sources, for as much as $3 billion. Chevron, the largest US oil producer after Exxon Mobil Corp, is working with financial advisers on the sale, though no formal process has started, and Chevron may decide to keep the assets, the sources said. A spokesman for Chevron said the company does not comment on mergers, acquisitions or divestitures.

Zalando forecasts strong revenue growth

Zalando SE, Europe's biggest online fashion retailer, has forecast sales growth near the high end of its projected range this year as it gains more customers. Revenue growth will be closer to 25 percent, the Berlin company said on Tuesday. Earnings before interest and tax will be 3 percent to 4.5 percent of sales, Zalando said. The company has made it simpler for consumers to buy entire outfits with just a few mouse clicks, increasing the average purchase size. It's also steadily boosting sales from mobile devices, now about 60 percent of its traffic, letting customers shop on the go.

Barclays to exit Africa, reduces dividend

Barclays Plc is selling its Africa business, cutting its dividend, and moving more assets into its non-core unit, after reported a 2 percent fall in full-year adjusted pre-tax profit to 5.4 billion pounds ($7.52 billion) on Tuesday. The British lender said it would sell down its 62 percent stake in Barclays Africa Group to focus on two main sibling divisions, Barclays UK and Barclays Corporate and International, two of its strongest divisions.

Vietnam coffee exports to drop to 6-year low

Coffee exports from Vietnam, the biggest producer of robusta beans may fall to the lowest in six years as farmers hold out for higher prices amid a forecast global supply shortage, according to the nation's largest shipper. Shipments are forecast at 1.1-1.2 million metric tons this year, said Do Ha Nam, chief executive officer of Intimex Group. That would be the lowest level since 2010, according to customs data.

Fiat making biggest Europe push in decade

Fiat Chrysler Automobiles NV is embarking on its biggest expansion in Europe in at least a decade, as the Italian-American carmaker faces crunch time in a strategy to more than double profit by 2018. After delaying investment in the region for years, Chief Executive Officer Sergio Marchionne is showing 10 new or refreshed models at the Geneva International Motor Show this week, ranging from the affordable Fiat Tipo to the upscale Maserati Levante sport utility vehicle. Alfa Romeo is a particular focus with entry-level and performance variants of the new Giulia sedan, as well as refreshed styling and upgraded features on the Giulietta hatchback.

De Beers sells $610m of stones at auction

De Beers is ramping up diamond sales to cash in on a recovery from last year's slump. The company last week sold $610 million of uncut stones at its second auction of the year, 12 percent more than a January offering that was already bigger than expected. De Beers and Russia's Alrosa PJSC, which control almost two-thirds of the market, sold more than $1 billion of diamonds in January, exceeding market expectations and sparking concerns that the sales may have been too much, too soon. Mining companies cut about a quarter of global supply last year to arrest the 18 percent slump in rough-diamond prices brought on by China's economic slowdown and an industry wide credit crunch.

(China Daily USA 03/01/2016 page14)