IN BRIEF (Page 13)

Shale-gas imports 'to rise'

China's shale-gas supply won't be able to keep up with growing demand, forcing the country to boost imports of the fuel, the consultancy Wood Mackenzie said.

Coal-gasification and coalbed-methane resources will also be needed in China before shale-gas production can accelerate after 2020, the Edinburgh, Scotland-based firm said. China's natural gas consumption will increase fourfold by 2030 to 600 billion cubic meters, contributing 30 percent of the global growth in gas demand.

Tighter bank capital rules

China plans to tighten bank capital rules at the start of next year, delaying the requirements to ensure lending support to a slowing economy.

The draft rules from the China Banking Regulatory Commission will allow lenders to count "excess" loan-loss provisions as capital, and will give a 10-year grace period to phase out capital instruments local banks have already issued that don't qualify under the new rules, according to a statement on the central government's website.

Green light for nuclear IPO

China National Nuclear Power Co won permission from environmental authorities to sell shares to finance 174 billion yuan ($27 billion) in projects in the nation's first initial public offering by a developer of atomic energy.

The Ministry of Environmental Protection approved a company report seeking permission, according to a statement on the ministry's website that didn't mention the amount to be raised. The share sale was approved by the China Securities Regulatory Commission in January.

Airline plans share sale

China Southern Airlines Co, Asia's biggest carrier by passengers, expects to raise about 2 billion yuan ($314 million) by selling shares to its parent, according to a person familiar with the situation.

State-owned China Southern Air Holding Co will pay for the stock using cash and about 1 billion yuan of new funds from the government, said the person, who declined to be identified since the talks are private. The listed airline said on Monday it was considering a share sale.

Interest rate cut 'likely'

The People's Bank of China will probably cut interest rates this month for the first time since 2008 as it tackles an economic slowdown, according to the nation's largest investment bank and the manager of the top-performing bond fund.

China International Capital Corp and HFT Investment Management Co said it is "necessary" to lower the benchmark lending rate of 6.56 percent as spending cools in the world's second-largest economy. Data this weekend are expected to show fixed-asset investment expanded at the slowest pace in a decade, inflation matched a two-year low and industrial output increased less than 10 percent for a second month, according to Bloomberg surveys.

China Daily-Agencies

(China Daily 06/07/2012 page13)