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Yuan halts advance as central bank lowers rate
The yuan halted a five-day advance after the central bank lowered the currency's reference rate amid concerns that the country's exports to the United States will slow unless US lawmakers agree to budget revisions. The People's Bank of China cut the rate by 0.05 percent to 6.2913 yuan per dollar on Monday, the lowest setting since Dec 14. The spot rate is allowed to trade as much as 1 percent on either side of the fixing. The dollar index climbed 0.3 percent in two trading days as House Republican leaders canceled a vote on Speaker John Boehner's plan to allow higher tax rates on annual income above $1 million.
PBOC may change repo auction schedule: traders
China's central bank may only auction off seven-day reverse-repurchase contracts on Thursday this week to avoid a conflict with the holidays, according to two traders required to bid at the auctions. The securities' interest will start to accrue on the following day and they will mature on Jan 8, according to the traders, who asked not to be identified. If the central bank issued the securities on Tuesday, their redemption date would coincide with New Year's Day. Reverse repos involve short-term asset purchases that add money to the banking system.
Rongsheng expects to post first loss in four years
China Rongsheng Heavy Industries Group Holdings Ltd, the country's largest shipbuilder outside State control, forecast its first annual loss in four years after seeing vessel prices and orders slump. The company is expected to post a net loss this year based on unaudited accounts for the 11 months ending on Nov 30, China Rongsheng said in a stock exchange filing on Monday. It didn't disclose any numbers. The company's first-half profits plunged 82 percent as global overcapacity and lower charter rates deterred shipowners from ordering more vessels.
BYD exports three electric cars to Thailand
Chinese battery and electric carmaker BYD Co Ltd recently delivered three pure electric e6 cars to Thai power company Metropolitan Electricity Authority, the first Chinese automaker to benefit from zero tariffs under the China ASEAN Free Trade Agreement in Thailand. The electricity authority will use the three e6 cars and charging equipment to research the impact of charging electric cars on the grid. Executives from the authority also said they would work with BYD on the development of electric vehicles, energy storage and solar power industries in Thailand.
Investment company misses payment to investors
Citic Trust Co, a unit of China's biggest State-owned investment company, missed a biannual payment to investors in one of its products after a steel company missed making interest payments on an underlying loan. A sustained fall in steel prices and losses incurred by Yichang Three Gorges Quantong Coated and Galvanized Plate Co caused the company to miss 74.6 million yuan ($12 million) in interest payments, according to a statement on Citic Trust's website on Friday. As a result, Citic Trust won't be able to pay investors the latest installment in a trust product payment that was due on Thursday, it said.
Palm oil price hits high on China demand speculation
Palm oil climbed to its highest level in almost four weeks on speculation that demand for the product will increase in China, the world's biggest buyer of cooking oil, reducing the record inventory held by Malaysia, the top producer of palm oil after Indonesia. The contract for March delivery gained as much as 1.2 percent to 2,437 ringgit ($795) a metric ton on the Malaysia Derivatives Exchange, the highest price for the most-active contract since Nov 27, before closing the morning session at 2,425 ringgit. Futures rose 5.9 percent last week and have trimmed this year's losses to 24 percent.
SOE takes 60 percent stake in private filmmaker
Beijing State-owned Assets Management Co Ltd, a company specializing in the cultural and creative industries, stepped into the movie industry by purchasing 60 percent of a private filmmaker. The deal with Beijing Shengshi Huarui Films Investment Co Ltd was worth 100 million yuan ($16 million), Xinhuanet.com reported on Sunday. BSAM President Li Aiqing said the investment will help Shengshi Huarui secure more capital and expand faster, while strengthening BSAM's portfolio in the cultural industry. The new company will produce, publish and run movie theaters starting next year, according to Gao Jun, general manager of Shengshi Huarui.
Nation plans to give boost to Internet of Things industry
China is considering guidelines to further develop the Internet of Things industry, financial website 21cbh.com reported on Monday, citing a government official. The government has drawn up 10 initiatives, including national standard drafting and research investment, in a bid to boost the industry, said Gu Dawei, deputy director of high-tech industry office under the National Development and Reform Commission. Gu said the guideline is expected to be implemented soon, but did not elaborate.
Gree Electric considers selling other products
Gree Electric Appliances Inc said on Monday that the company is considering selling other companies' products in its stores. "Gree stores will not only focus on our own products, but also might offer goods by other manufacturers," said Gree President Dong Mingzhu. "By doing so, Gree might try a new business model - that of an electric-appliance chain." Gree was founded in Zhuhai, Guangdong province, in 1991. Today it is one of the country's largest air-conditioner enterprises, integrating manufacturing, marketing, and research and development.
Agriculture firm denies link with tainted peanut oil
Beidahuang Agriculture Co Ltd said it is not affiliated with a Hong Kong-based edible-oil supplier with a similar name that was found to have sold tainted peanut oil. Board Secretary Shi Xiaodan said her company has no connection to Hong Kong Beidahuang, and that Beidahuang Agriculture's Hong Kong subsidiary does not produce peanut-oil products. The Hong Kong Food and Environmental Hygiene Department found food samples from Hong Kong Beidahuang that had high levels of benzopyrene, which can cause cancer in humans, according to the department's website.
Verification starts for IPOs on mainland market
The China Securities Regulatory Commission has restarted verification of companies that apply for IPOs on the mainland market, the China Securities Journal reported on Monday. More than 800 companies are on the waiting list for the background check they need before they can go public. The companies aim to raise an estimated 500 billion yuan ($80 billion), Ernst & Young said. The commission has started to scrutinize IPO applicants, including examining their application materials and financial authenticity, and will disqualify unsatisfactory applicants, the newspaper reported.
China Daily - Agencies
(China Daily 12/25/2012 page14)