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Governments and policies

PBOC invests in Indian gilts for first time

China's central bank invested in Indian government bonds for the first time after the government eased curbs on foreign investors, the Economic Times newspaper reported on Wednesday, citing a regulatory source it didn't identify. The People's Bank of China is registered with the Securities and Exchange Board of India as a foreign portfolio investor and it may have bought bonds worth $500 million, the newspaper reported.

NDRC stresses on investment boost

The National Development and Reform Commission, China's top economic planner, on Wednesday stressed the importance of boosting investment and stabilizing growth in the fourth quarter of 2015. Investment projects planned for the next year under the central budgetary management will begin before the end of this year, the NDRC said. Construction of important national strategic projects, including the Beijing-Tianjin-Hebei integration plans will receive enhanced support in the next three months.

Companies and markets

Country Garden backs out of Beijing land deal

Property developer Country Garden Holdings decided not to buy two plots of land in Beijing's suburban Fengtai district it won at a Oct 21 Beijing auction after the final prices exceeded its budget. The final price for one site was 28,900 yuan ($4,562) per square meter and it was 29,700 yuan for the other, exceeding Country Garden's agreed ceiling of 26,000 yuan and 25,000 yuan, respectively.

Dali Foods seeks up to $1.34b from HK IPO

Dali Foods Group, a Chinese snack and beverage producer, is seeking to raise as much as $1.34 billion in a Hong Kong initial public offering. The company, which sells "Daliyuan" cakes and "Copico" brand potato chips, is offering 1.69 billion shares at HK$5 (64.5 cents) to HK$6.15 each. Three cornerstone investors including Arisaig Partners have agreed to buy about $305 million of stock in the offering.

Maori fishery firms seek partners in country

New Zealand's Maori-owned seafood companies are looking for more collaboration with Chinese partners to enter the Chinese market. New Zealand's seafood export companies are exhibiting at the China Fisheries and Seafood Expo in the eastern port city of Qingdao, Shandong province. Together, they manage 40 percent of New Zealand's commercial fish quota.

Uber sticks to expansion plan amid talk of curbs

Uber Technologies, the world's most valuable startup at more than $50 billion, said it will push ahead with plans to expand into new Chinese cities, downplaying the potential impact on its operations from proposed regulations on the ride-hailing industry. The company's China unit is sticking with its plans to be in about 100 new cities in the next year, Liu Zhen, head of strategy, said. Uber China also expects to at least double the number of employees by the end of next year, from about 200 people.

Oct iron ore shipments from Hedland down 9%

Iron ore shipments to China through Australia's Port Hedland in October fell 9 percent to 30.73 million tons from a record 33.78 million tons in September as the price of the commodity deteriorated. The port is the world's largest for exporting iron ore. Total shipments of iron ore through the port in October amounted to 36.52 million tons, down 7 percent from 39.41 million tons in September, also a record.

CITIC PE arm to buy rest of Biosensors

A private-equity arm of CITIC Group Corp agreed to buy the rest of Singapore-based medical device maker Biosensors International Group for about S$1.1 billion ($817 million). CITIC Private Equity Funds Management Co, which already controls about 19.6 percent of Biosensors, is paying S$0.84 a share for the stock it doesn't already own, according to a stock exchange statement. That price is about 24 percent higher than Biosensors' last closing price of S$0.68.

Gold output up 1.5% to 357 tons in July-Sept

Gold output in China rose to 356.9 tons in the first nine months of this year, up 1.48 percent from a year earlier, the China Gold Association said on Wednesday.

Around the world

Honda Motor July-Sept profit falls on Japan

Honda Motor Co reported its July-September profit fell to 127.8 billion yen ($1.06 billion) from 141.9 billion yen on quality-related expenses and as demand slumped in Japan. That compares with the 129.5-billion-yen average of eight analysts' estimates compiled by Bloomberg. The automaker maintained its profit forecast. Honda has posted 12 straight months of declining deliveries at home.

CapitaLand ends talks to buy BlackRock's tower

CapitaLand, Southeast Asia's biggest developer, said it withdrew from negotiations to buy BlackRock's Asia Square Tower 1 in Singapore, after disagreeing over terms of the deal. CapitaLand will continue to explore opportunities that allow it to generate required returns, it said in a statement on Wednesday.

Hyundai's Genesis to become premium brand

Hyundai Motor Co will spin off its luxury Genesis sedan into a standalone premium brand as South Korea's largest automaker seeks to move upscale and compete against the likes of Toyota Motor Corp's Lexus. The carmaker plans to have a line-up of six models, including four new ones, under the Genesis brand by 2020. The four new models will include a mid-size sedan, a large sport utility vehicle, a mid-size SUV, and a sports coupe.

Porsche unit pulls bond deal as scandal grows

A financing arm of Porsche AG pulled a $505 million asset-backed bond deal on Tuesday after US regulators said they were expanding their probe into emissions-cheating software. Volkswagen AG, Porsche's parent, said on Tuesday it found faulty emissions readings in gasoline-powered vehicles for the first time, widening a scandal that had previously centered on diesel engines.

Scor Q3 profit jumps as premiums increase

Scor SE, France's largest reinsurer, said profit rose 36 percent in the third quarter as new business in Asia helped increase life-reinsurance premiums. Net income climbed to 165 million euros ($180 million) from 121 million euros a year earlier, the Paris-based firm said in a statement on Wednesday. Natural-disaster costs fell while there were an "unusually high number of large man-made losses". Scor absorbed 32 million euros in net pretax losses from the mid-August blasts in the Chinese port city of Tianjin.

SoftBank's profit rises on new customers

SoftBank Group Corp's profit rose after it added wireless customers at home, making up for widening losses at United States unit Sprint Corp that forced Chairman Masayoshi Son to declare thousands of looming job cuts. The company founded by Japan's second-richest man had operating income of 342.2 billion yen ($2.8 billion) in the three months to September. That compares with the 336.3 billion yen average of five estimates compiled by Bloomberg.

Barry Callebaut cuts production forecast

Barry Callebaut AG, the world's biggest maker of bulk chocolate, lowered its mid-term production forecast and said this financial year will be challenging due to high cocoa prices. Volume will rise 4 percent to 6 percent annually on average over the three years through August 2018, the Zurich-based company said in a statement on Wednesday. The company had been forecasting annual growth of 6 percent to 8 percent in past years.

China Daily - Reuters - Xinhua - Bloomberg

(China Daily USA 11/05/2015 page14)