ICBC eyes GSIS

China's top lender Industrial and Commercial Bank of China (ICBC) is looking to invest in a thrift bank owned by a Philippine State pension fund. It will make a capital infusion in GSIS Family Savings Bank as a third party investor.

GSIS said in a statement ICBC was seeking a commercial banking licence from the central bank to operate and engage in expanded foreign currency deposit units, trust and quasi-banking operations.

ICBC plans to open 20 more branches of GSIS Family Savings Bank, a wholly owned subsidiary of the pension fund, and relocate 12 of its existing 22 branches located mostly in the outskirts of Manila, the capital city.

GSIS had said it wants to sell a 42 percent stake in its banking arm, but ICBC is seeking the pension fund's decision on whether or not it was prepared to become a minority shareholder in the bank, the statement from the pension fund said.

BYD lines up EU channel

China's BYD Co has signed up 10 distributors for its plug-in hybrid car in Europe ahead of its targeted entry into that market in 2010, a senior company executive said yesterday.

BYD Auto, a subsidiary of the Hong Kong-listed rechargeable battery maker, has used its expertise in batteries to develop rechargeable electric vehicles that it hopes will eventually compete with General Motors and Toyota Motor.

The firm, which plans to begin selling its first all-electric car designed for the domestic market next year, also wants to ship it to Europe, where potential fleet buyers including Deutsche Post AG's delivery arm DHL Express have indicated initial interest, said Henry Li, general manager of BYD Auto's export trade division.

Taiwan fund firm deal

Manulife Financial Corp said yesterday it completed its purchase of Fuhwa Securities Investment Trust Co Ltd, a deal aimed at bulking up its fund management operations in Taiwan.

The deal was first announced in August. The Canadian insurer said the acquisition would add seven new retail funds to its current offering in Taiwan and enhance its Taiwanese investment capability. It said Fuhwa had $900 million of assets under management as of Oct 16.

Manulife also said Brian Hsieh had joined Manulife to lead Fuhwa's sales, product development and distribution efforts. It said he was previously head of institutional business with Fidelity SITE.

Shenhua Q3 net up 48%

China's Shenhua Energy Co Ltd, the world's top coal producer by market value, posted a 48 percent rise in third-quarter earnings after it cranked out more coal and sold on higher prices.

Analysts expect Chinese coal producers to report strong earnings growth and cashflow generation as spot thermal coal prices rose almost 30 percent in the third quarter from the second quarter, and almost doubled from a year earlier.

Armed with $8.9 billion in cash from an initial public offering last year, Shenhua has said it is in talks to buy coal mines in Indonesia and Australia, two of the world's largest coal exporters.

HK dollar steady

The Hong Kong dollar was steady against the US dollar yesterday, while interbank interest rates eased after the central bank liquidity injection the previous day and boosted by a rebound in stocks.

The local currency was trading at 7.7522/25 per US dollar at 0906 GMT after shuffling between 7.7508 and 7.7535.

Interbank interest rates fell, particularly the short-dated rates, after the Hong Kong Monetary Authority injected a total of HK$15.507 billion into the territory's banking system on Monday.

Reuters

(HK Edition 10/29/2008 page2)