CITIC may sell coal stake

The future of CITIC Resources Holdings' 17.66 percent stake in Australia's Macarthur Coal is up in the air.

CITIC Resources Chief Executive Sun Xinguo said at a news conference yesterday that his firm may sell or hold onto the shares.

"We haven't made a final decision about what to do next," he said. "We will decide at the proper time."

Macarthur's top shareholder, Ken Talbot, has been gradually selling off his 24 percent stake, which opens up the possibility of a takeover bid by companies such as CITIC Resources or ArcelorMittal, which bought almost 15 percent of the firm for $604 million last month.

Hong Kong dollar ends flat

The Hong Kong dollar gave up early gains to end little changed on Monday, while short-dated interbank rates softened after the month-end effects.

The local currency was trading at 7.8044/46 against the US dollar at 0852 GMT, barely changed from late Friday trade in Asia.

US economic data is due later this week for fresh trading cues.

The volatile overnight rate traded between 0.75 and 1.30 percent on the day.

The one-month rate was quoted at 1.53/1.60 percent, down from Friday's close at 1.60/1.65 percent.

Outlook on Parkson Retail

Standard & Poor's Ratings Services has revised its outlook on the Hong Kong-listed Parkson Retail Group Ltd from "stable" to "positive".

At the same time, Standard & Poor's affirmed the "BB" long-term corporate credit rating on the company and its issue rating on $200-million and $125-million senior unsecured bonds due in 2011 and 2012, respectively.

Due to the maturing of recently opened stores, and the opening of new stores, Parkson's reliance on its two flagship stores in Beijing and Shanghai has been reduced meaningfully.

Reuters

(HK Edition 06/03/2008 page2)