China Life class action suit

US courts have thrown out a class-action lawsuit brought against China Life in 2004 by US investors accusing the country's largest life insurer of inadequate disclosure, the Chinese firm said yesterday.

US investors had accused China Life of failing to disclose that a government audit of its state-owned predecessor company had unearthed accounting irregularities worth about 5.4 billion yuan up to 2002.

The listed China Life, formed in June 2003 by plucking healthier assets from its parent, raised $3.5 billion in December 2003 in the world's largest initial public offering that year.

Fiat seeks new partners

Italian automaker Fiat said yesterday that it is struggling to meet its China sales target and is in talks with potential new partners as sales in its home market fall.

Fiat's problems in China come as data showed a sharp slowdown in the world's second-largest auto market last month due to the Beijing Olympics and sliding consumer confidence.

Fiat Chief Executive Sergio Marchionne told Reuters the company's goal of selling 300,000 units in China by 2010 was under threat.

HK dollar inches higher

The Hong Kong dollar edged higher against the US dollar on Thursday, while most interbank interest rates were trapped in a narrow range.

The local currency was trading at 7.8070/72 per US dollar at 0845 GMT, up about 0.02 percent from late Wednesday trade in Asia and recovered from a one-week low of 7.8096 struck on the previous session.

The US dollar index, which gauges its performance against a basket of major currencies, fell 0.14 percent on Thursdasy to 77.975.

In the interbank market, the one- and two-week interest rates softened slightly from the previous day's close.

The one-week rate was quoted at 1.47/1.57 percent, compared with 1.55/1.60 percent late on Thursday.

However, the one-month to one-year interest rates moved narrowly on the day.

South Korea new bond sale

South Korea will meet global debt investors next week to sell a much anticipated sovereign bond of around $1 billion, in what will likely be a key test of overseas confidence in the country.

South Korea is going forward with its first sovereign debt sale in two years despite a tough week for its financial markets, after fears of mass capital flight sparked a slide in the won and pressured stock and bond markets.

Deputy Finance Minister Shin Je-yoon had said this week delaying the planned bond sales could fan investor jitters about the country.

Reuters

(HK Edition 09/05/2008 page2)