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SME ads on Jike.com signal open market arrival

China's homegrown Internet search engine Jike.com said on Wednesday it plans to offer advertisement slots for the country's small and medium-sized enterprises, a move being seen as the first step by the State-owned search portal toward full commercialisation.

"We plan to provide more value-added contents to our users and vigorously face the challenges ahead after launching our market operation strategy," said Deng Yaping, president of Jike.com.

She added the company plans to provide free advertising services to up to 1,000 SMEs in the next three years in a bid to expand its customer base, although no details were given on advertising rates for the promotion.

IPO applications hit 704 for the year to date

The China Securities Regulatory Commission has reported 704 IPO applications so far this year.

Of those, 112 have been approved and are now pending flotation in China's A-share market.

Last year, funds raised in China through 349 IPOs dropped 41 percent to 286.1 billion yuan ($45 billion) after hitting a record figure in 2010.

LaShou Group withdraws IPO in the United States

China's group-buying online services provider LaShou Group Inc on Tuesday withdrew its initial public offering plan from the US stock regulator amid market stagnation.

"The company has determined not to proceed at this time with the offering and sale of securities covered by the Registration Statements," said LaShou's request filed with the Securities and Exchange Commission, the US stock market watchdog.

The withdrawal was "consistent with the public interest and protection of investors", the company added. LaShou had delayed its IPO plan in November because of "corporate developments".

Tencent invests in US gaming company

Chinese IT giant Tencent Holdings Ltd is buying a minority stake in Epic Game Inc, a US-based three-dimensional game developer.

"We look forward to supporting the Epic team as they embark on their next phase of gaming innovation across both emerging and familiar platforms," said David Wallerstein, senior executive vice-president of Tencent.

Epic will continue to operate independently after the purchase, according to the deal.

Insurance giant plans IPO in Hong Kong

The potentially largest initial public offering on the Hong Kong stock market this year is likely to debut in the middle of July and may raise at least $3 billion, a source close to the deal said.

Hong Kong Exchanges and Clearing Ltd will hold a meeting on Friday to discuss the IPO application of the People's Insurance Company of China, one of the country's largest State-owned insurers, according to the source.

Goldman Sachs, Morgan Stanley, UBS and 11 other banks were mandated to help underwrite the Hong Kong tranche of the IPO, valued at up to $3 billion, said IFR, a Thomson Reuters publication.

CDB agrees $1 billion loan for Alibaba: sources

Alibaba Group Holding Ltd has secured about $1 billion in a three-year loan from China Development Bank Corp, the first portion of a two-part financing package from the bank, two people familiar with the matter said.

The financing from CDB will be used to replace a bridging loan provided by a syndicate of international lenders. The size of the second portion of the loan from CDB has not been determined, one of the people said, asking not to be identified. The second portion of the loan may have a tenor of four years, the person said.

Sinopec cuts June crude processing by 8%

China Petroleum & Chemical Corp, the nation's biggest oil refiner, reduced crude processing for this month by 8 percent from its original plan amid weaker fuel demand and a possible price cut, according to leading Shanghai commodity researcher C1 Energy.

The company's refining target will fall by about 1.5 million metric tons, Liao Kaishun, an analyst with C1 said on Wednesday.

China Petroleum, or Sinopec, also asked its refineries and sales units to shrink fuel stockpiles as the government may cut retail gasoline and diesel prices in July, said Liao.

Unicom to cut smartphone prices by 30%

China Unicom (Hong Kong) Ltd, the country's second-biggest wireless carrier, will cut the price of its cheapest smartphones by 30 percent to about 700 yuan ($110) in an effort to expand its market share as user growth slows.

China Unicom will introduce smartphones costing less than 700 yuan in China in the near future, after "great success" with models priced at less than 1,000 yuan, President Lu Yimin told the GSMA Mobile Asia Expo in Shanghai on Wednesday.

"For the mass market we launched a series of promotions with 1,000-yuan smartphones" from 2010 to 2011, Lu said. "In 2012, we will continue promotion measures."

BYD bonds sold at third of HK debt costs

BYD Co, the Chinese electric car and handset component maker backed by billionaire Warren Buffett, sold bonds in Shenzhen at a third of the cost of debt in Hong Kong as mainland investors bank on government support for new energy to buoy its slumping profits.

The manufacturer sold 3 billion yuan ($472 million) of five-year securities priced to yield 5.25 percent, according to a company statement. That compares with the 14.3 percent yield on its "Dim Sum" bonds due in 2014. In the US, automakers pay an average of 2.64 percent on their debt, according to Bank of America Merrill Lynch indexes.

ZTE expects 4G equipment by end of year

ZTE Corp, China's second-largest maker of phone equipment, plans to release devices for 4G TD-LTE services by the end of this year or early next year, Shi Lirong, company president, said at the GSMA Mobile Asia Expo in Shanghai on Wednesday.

Three nuclear plants ordered to improve safety

China has ordered operators of three State-run nuclear power stations to improve safety and disaster management plans following a nationwide inspection in the wake of last year's Fukushima accident in Japan.

Of those, the Qinshan Nuclear Power Plant will stop operations if it is hit by a typhoon until the station improves flood-prevention methods, according to a risk inspection report from the National Energy Administration and the Environment Protection Ministry. The plant in the eastern province of Zhejiang lacks a contingency plan for "severe accidents," according to the report posted on the NEA website on Wednesday.

China lowers entry barrier for QFIIs

China plans to lower the entry barrier for foreign institutional investors looking to buy publicly traded securities in mainland exchanges, as part of reforms to add depth to the country's capital markets. The government will cut the minimum requirement on assets under management to $500 million from $5 billion for companies seeking a license under the Qualified Foreign Institutional Investor program, the China Securities Regulatory Commission said in a statement on its website on Wednesday. The regulator also said it will allow them to invest in the country's interbank bond market.

More bond trading to boost debt market

China is allowing more companies to trade bonds amid increasing scrutiny over issuers as the government seeks to ensure that the expansion of its nascent debt market isn't derailed by defaults.

The top economic planning agency ordered local governments to examine the ability of companies to repay bonds maturing in 2012 and 2013, two sources with direct knowledge of the matter said on Tuesday, asking not to be identified.

China Securities Regulatory Commission began allowing mutual funds to invest in private placements by smaller companies, according to an agency document obtained by Bloomberg News.

Agencies - China Daily

(China Daily 06/21/2012 page14)