Beijing

Bond market promoted

The People's Bank of China (PBOC), the nation's central bank, announced yesterday it had allowed members of the interbank bond market, or institutional investors like banks and insurers, to buy corporate bonds issued in the exchanges.

The liberalization move aims to increase liquidity in the corporate bond market, which the authorities are trying to promote to reduce businesses' reliance on bank loans.

Market makers and underwriters are also encouraged to act as liquidity providers by quoting both buying and selling prices.

Financial adviser named

China Construction Bank (CCB), the Hong Kong-listed and State-owned bank, picked Standard Charted as its financial adviser for its issuance of 3.1 billion yuan (US$382 million) mortgage-backed securities (MBS).

CCB is the first State-owned bank to use securitization to manage its mortgage loan portfolio. The issuance of its MBS product along with China Development Bank's 4.3 billion yuan (US$518 million) asset backed securities were approved earlier last week by the regulators, moves that are aimed to diversify the country's bond markets.

Joint-alumina project

Aluminum Corp of China Ltd (Chalco), the world's second-biggest alumina producer, signed an initial agreement with Vietnam Charcoal Group to jointly develop an alumina project in Viet Nam.

The Dak Nong project includes bauxite mining, alumina production and an initial study of building a power plant and a smelter, Chalco said in a statement.

Payment with credit cards

China CITIC Bank is stepping up its efforts to tap into the credit card business after it decided to transform itself into a retail bank. The bank joined forces with China Southern Fund Management Co recently to form a jointly signed credit card. With the card, the monetary fund for the first time has the function of payment. And the cardholders can increase their credit quota based on how many funds they have.

Tall building completed

The Beijing Yintai Centre, located along Chang'an Avenue and neighbouring Beijing's Central Business District, was completed last week. The 249.9-metre high building is reportedly the tallest on its street.

With gross floor area of 350,000 square metres, the centre will include the Park Hyatt Hotel, two Park Hyatt Residences and two high-end office buildings.

(China Daily 12/20/2005 page10)