IN BRIEF (Page 13)

High-yield bond issuance likely

China may soon allow issuance of high-yield bonds in an effort to boost the fixed income market and explore new sources of funding for smaller businesses.

Zhou Yuanfan, a member of the credit rating committee of the Securities Association of China, who is close to the matter, said the relevant policy has been drafted and will be unveiled sometime this month.

High-yield bonds normally come with a higher risk of default but also pay higher interest. Such bonds are often issued by smaller businesses facing financing difficulties.

CSRC approves plan for ETFs

The China Securities Regulatory Commission has approved a plan to start exchange-traded funds (ETFs) tracking Hong Kong stocks and offshore yuan investment by qualified foreign institutional investors (QFII) in Shenzhen, Caixin Online reported, citing a person familiar with the matter.

Shenzhen will be permitted to begin a trial program for ETFs and allow overseas yuan investment under the renminbi QFII program in the Qianhai coastal zone, Caixin reported, citing the unidentified person.

Vehicle exports likely to rise

China's vehicle exports may rise by about 50 percent this year, extending the record shipments seen in 2011, according to the China Chamber of Commerce for the Import & Export of Machinery & Electronic Products.

Total auto exports increased at the same pace last year to 849,914 units, said Yang Aiguo, deputy secretary-general of the chamber's auto department, citing data from the customs bureau.

"Demand for vehicles has been picking up in developing markets such as Russia, Saudi Arabia and Brazil," said Yang on Monday, adding, "Chinese automakers are actively investing in overseas markets."

Firms launch new movie fund

China's Sun Media Group, a television production firm, has teamed up with Harvest Fund Management, the country's second-biggest fund management firm, to launch a fund of up to $800 million to invest in movies, the companies said on Monday.

Sun Redrock Investment Group, controlled by Sun Media, and Harvest Alternative Investment Group will hold 50 percent each in the new fund, according to a statement from the companies. They said the new fund would have an initial target of $800 million and would invest in movie projects globally.

Citi gains credit card approval

Citibank (China) Co Ltd (Citi) announced on Monday that it has received approval from the China Banking Regulatory Commission to launch a credit card business in the country. The business will encompass both retail and commercial cards, and is expected to be launched this year. Andrew Au, chief executive officer of Citi China, said the ability to offer retail and commercial cards provides Citi with a strong competitive edge.

China Daily - Agencies

(China Daily 02/07/2012 page13)