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China's swaps end 3-day decline

China's interest-rate swaps halted a three-day decline on optimism that government measures to spur spending are quickening a recovery in the economy. Initiatives announced since May are "effective" and "ample" in stabilizing growth, according to an unsigned front-page commentary in Financial News.

Expansion slowed in each of the last seven quarters and the government accelerated approvals of infrastructure projects to spur spending at home as Europe's debt crisis hurts exports, it said.

Apple sees biggest drop in four years

Apple Inc shares declined the most in almost four years on Thursday on concerns the company will lose ground on smartphone sales to Nokia Oyj in China, while also giving up market share to Google Inc in tablets. Apple fell 6.4 percent, the biggest drop since Dec 17, 2008 to $538.79 at the close in New York. The decline wiped $34.9 billion from Apple's market value, the steepest loss since at least 1988, according to data.

Developer reveals Malaysian plans

Country Garden Holdings Co, said it plans to buy waterfront land in Malaysia, adding its name to the list of Chinese developers starting to venture overseas as the government restrains the property market at home. In September, Xinyuan Real Estate Co took control of a lot slated for more than 200 units of housing near New York's Brooklyn waterfront for $54.2 million, a deal the Beijing-based company said is the first of its kind by a Chinese firm in the US.

Rebar futures see first drop in 5 days

Steel reinforcement-bar futures declined for the first time in five days amid concerns about demand from China, the largest user. Rebar for May delivery closed 0.7 percent lower at 3,595 yuan ($578) a metric ton on the Shanghai Futures Exchange after rising as much as 0.4 percent to 3,635 yuan, the highest since Nov 19. Futures have lost 15 percent this year.

GM China sales rise 9.7% in November

General Motors Co, the biggest foreign automaker in China, said that November sales in the country increased 9.7 percent year-on-year on increased demand for its Buick and Chevrolet cars. China sales climbed to 260,018 units in November, led by a 17 percent increase in Buick sales, the Detroit-based automaker said in a statement on Thursday.

Integration of energy prices OK'd

A plan to unify electricity and coal prices has been approved by the State Council, China Securities Journal reported on Thursday, citing industry insiders. After the unification, the key contract for coal will be replaced by mid- and long-term contracts. However, electricity prices will not have a real-time linkage with coal prices, a move favored by power generation companies.

Yield on bonds beat Aussie rivals

The yield on China's 10-year bonds is higher than Australia's for the first time in at least a decade, a reversal that investors say will boost the yuan against the South Pacific nation's currency. China's benchmark notes yield 3.55 percent, 37 basis points more than similar-maturity debt in Australia, compared with 71 basis points less in March. The average discount since Bloomberg started compiling data on yuan notes in early 2003 is 155.

Iron ore demand to increase in 2013

The Baltic and International Maritime Council, the world's largest association of ship owners, has forecast Chinese iron ore imports will grow at a rate of 7.5 percent in 2013 up from 6.4 percent in 2012, driven by higher steel demand for housing, infrastructure and machinery as well as the increasing cost of the lower quality domestic ore. The move is likely to spur demand for larger dry bulk vessels to transport the commodity, the organization said.

Farm price volatility to continue

Rabobank said that volatility in agricultural commodity prices will continue in 2013, particularly in the grain and oilseeds markets. It blamed a supply squeeze in the first six months which is expected to push prices higher before an expected production rebound leads to a weakening in prices in the second half of the year. The bank said soybean meal is the commodity likely to show the largest price decline by the end of 2013.

Service growth down in October

The expansion of China's service sector moderated to a three-month low in November, according to the HSBC service purchasing manufacturers index figure of 52.1, which fell from 53.5 in October. The indicator was dragged down by cooling new business growth. The sub-index in the sector slowed to a three month low of 52.2, compared with October's 53, according to the HSBC.

Firms interested in direct financing

Enterprises have shown more interest in direct financing such as bond issuance, the National Association of Financial Market Institutional Investors said in a statement on Wednesday. As of the end of November, bond issuance through the Chinese inter-bank market this year totaled 7 trillion yuan ($1.12 trillion), making up 15 percent of GDP during the same period, the statement said. Transactions made through the market reached 240 trillion yuan, around 6.8 times GDP.

China Daily - Agencies

(China Daily 12/07/2012 page14)