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China to cut retail prices of gasoline and diesel

The government will cut retail prices of gasoline and diesel beginning on Wednesday, China Central Television quoted Zhou Wangjun, deputy director of the National Development and Reform Commission's department of pricing, as saying.

The government is looking for the right time to promote the reform of refined oil prices, he said.

According to China's current pricing mechanism, if the price of a basket of international crude oil changes by more than 4 percent within 22 working days, China may adjust the domestic refined oil price.

The report didn't say how large the price cuts will be.

Thermal-coal price in longest losing streak since 2008

China's benchmark price for power-station coal fell for a ninth consecutive week, the longest period of losses since 2008, as slowing economic growth and increased use of hydropower slowed electricity demand.

Coal with an energy value of 5,500 kilocalories per kilogram fell to 645 yuan to 660 yuan ($101.25-$103) per metric ton on Sunday, according to data from the China Coal Transport and Distribution Association. The association said the average price was 2.6 percent less than the previous week and the lowest since Nov 16, 2009.

Developers rise as CPI raises easing hope

China's property shares rose to their highest level in a year after the consumer price index eased to a 29-month low, prompting investor optimism that the central government will relax economic policies to boost growth.

The gauge tracking developers on the Shanghai Composite Index rose for a third consecutive day, rising 0.6 percent to a record high since July 2011. China Vanke Co, the mainland's biggest listed developer on the mainland, climbed 1.7 percent to 9.81 yuan in Shenzhen, and is set for its highest price since November 2010.

Poly Real Estate Group Co, the second-largest, added 2.2 percent to 13.1 yuan, its highest price in two-and-a-half years.

Consumer prices climbed 2.2 percent in June from a year earlier, the lowest rise in 29 months, the National Bureau of Statistics said on Monday.

US PE firm to put $200m in car-rental company

China Auto Rental Holdings Inc, the country's top car-rental provider, announced on Monday it has received $200 million from the US-based private equity firm Warburg Pincus LLC.

The amount, the largest equity financing seen to date in China's car-rental industry, follows the company's aborted attempt at holding an initial public offering in the Unite States earlier this year.

The investment is larger than what China Auto Rental had expected to raise through the IPO.

According to a statement sent to China Daily, Warburg Pincus will make the equity investment through its affiliate.

Share prices in Yurun Food drop after chairman leaves

Shares in China Yurun Food Group Ltd, the country's second-largest supplier of meat products, decreased to a more than five-year low in Hong Kong trading after the company chairman and founder Zhu Yicai left from the active management of the company.

China Yurun appointed Yu Zhangli, current CEO, to the chairmanship position and named Li Shibao as his replacement.

That change came less than 10 days after the company rejected allegations of accounting irregularities and contaminated products, saying they were "groundless". Yu was named CEO in March after the company said its first-quarter earnings had suffered from a 2011 news report saying that illegal additives were used in some of its meat.

Alibaba boosts six-month revenue to more than $1.8b

Alibaba Group Holding Ltd, China's biggest e-commerce company, boosted its half-year revenue by at least 60 percent to more than $1.8 billion as its websites helped it become more profitable, a person familiar with the matter said.

The company's earnings before interest, tax, depreciation and amortization as a percentage of its revenue increased to 40 percent in the six months ending on June 30, compared with 35 percent a year earlier, according to the person familiar with matter, who asked not to be identified. The company is partly owned by Yahoo Inc and Softbank Corp.

Production rates from small refineries in Shandong rise

Privately held refineries in Shandong province, which imports about a third of the fuel oil the country uses, increased their processing rates to 30.3 percent of designed capacity in the week that ended on July 5, the Shandong-based Oilchem.net said in a statement on its website.

That figure was above the 25.7 percent recorded a week earlier, the lowest such rate seen since April 2010.

One-year interest swap rate declines to one-month low

China's one-year interest-rate swap rate dropped to its lowest level in a month on speculation easing inflation will give the central bank more room to relax monetary policy.

China's central bank gauged demand for seven and 14-day reverse repurchase contract sales this week, according to a trader required to bid at the auctions.

"The CPI may trend lower every month till October," said Guo Caomin, a bond analyst at Industrial Bank Co. in Shanghai. "The central bank may cut the reserve ratio this month if June's lending is less than 800 billion yuan ($130 billion)."

Anton oilfield sells 20% stake to Schlumberger

China's Anton Oilfield Services Group sold a 20 percent stake to Schlumberger Ltd, the world's largest oilfield-services provider, Antonoil said on Monday.

Schlumberger purchased 423.4 million shares of Antonoil, the Chinese oilfield-services company said in a statement. The shares are valued at HK$635 million ($82 million) based on Antonoil's July 6 closing price. Antonoil said Schlumberger won't be involved in its management as a minority shareholder.

The two companies began cooperating in 2010 on drilling fluids and well-cementing services, Antonoil said. The Middle East and Asia accounted for 23 percent of Houston-based Schlumberger's revenue in 2011, or $8.07 billion, according to the company's financial statements.

Tata to buy Chinese auto parts at 'unbelievable' prices

Tata Motors Ltd, maker of the world's cheapest car, is turning to China to buy vehicle parts that are unavailable in India as it tries to offer automatic-transmissions vehicles at home, said Ratan Tata, company chairman.

The maker of trucks, sedans and utility vehicles may benefit from the "unbelievable" prices being offered by Chinese component makers, Tata, who will step down as head of the company in December, said in an interview with the TV journalist Charlie Rose.

The company plans to buy sub-assemblies, which including automatic transmissions, from China, he said.

Agencies - China Daily

(China Daily 07/10/2012 page14)