New World Development to plan bond sale in US$

New World Development Co, the Hong Kong developer controlled by billionaire Cheng Yu-tung, plans to sell bonds denominated in US dollars, according to a person familiar with the matter.

HSBC Holdings Plc, JPMorgan Chase & Co and Morgan Stanley are managing the sale, said the person, who declined to be identified before a public announcement. Fita International Ltd will sell the bonds and New World will guarantee them, the person said.

RUSAL rises as aluminum extends advance in London

United Co RUSAL Ltd, the world's largest aluminum producer, rose for the first time since its Hong Kong trading debut as prices for aluminum extended recent gains.

The company, controlled by billionaire Oleg Deripaska, gained 1.8 percent to close at HK$9.52 ($1.23) per share on the Hong Kong Stock Exchange, its sixth day of trading. Shares were sold last month at HK$10.80 each.

The Hang Seng Index gained 2.2 percent, rising to 20,722.08 at the close, its steepest gain since November 30. The Hang Seng China Enterprises Index, which tracks the H-shares of Hong Kong-listed mainland companies, rose 2.3 percent to 11,838.72.

Burwill to invest $100m to lift mainland mine output

Hong Kong's Burwill Holdings plans to invest $100 million to quadruple its iron concentrate output using ore from a mine it is buying in eastern China's Shandong province, its chairman said. The veteran steel trader last year agreed to pay HK$500 million ($64.39 million) for 51 percent of the iron ore mine, in a deal expected to close by the end of this month, Chairman Chan Shing told reporters yesterday.

Burwill would build new ore dressing plants, taking the mine's production to 700,000 tons of iron concentrate by the end of this year, then to 1.5 million tons in 2011 and 3 million tons in 2012, he said. Chan said he hoped to exercise the right in the second quarter of 2010, adding that the company would need funding for the additional interest and may issue new shares to strategic investors or finance the purchase through other means.

Gaw Capital eyes properties in China, Western markets

Private equity real estate firm Gaw Capital aims to invest $500 million of equity in its third China fund over the next two years, and is eyeing good bargains in Western markets, a top executive said yesterday. Gaw Capital Partners bought the Embassy House in Beijing, a luxury apartment tower, for about $130 million a month ago, but going ahead will focus on residential properties in second-tier cities, chairman and co-founder Goodwin Gaw said.

Gaw Capital is now managing two funds, Gateway China Fund I and Gateway Capital Real Estate Fund II, which have a total equity of over $1 billion with a mix of residential, office and retail real estate. Gaw said the company was about to close its third fund, Gateway China Fund III, but declined to give more details. For the coming year or so, Gaw will also seek opportunities in distressed properties in the United States.

HK dollar inches up as stocks head higher

The Hong Kong dollar inched higher against the US dollar, underpinned by a rise in the city's stock market. The local currency traded between 7.7663 and 7.7671 during the session, firmer than Tuesday's rate. A dealer at a local bank expected the USD/HKD spot rate to trade narrowly ahead of a key US jobs report due on Friday. Local interbank rates were mostly steady, with the three-month Hibor remained at 0.13000 percent. Hong Kong dollar forwards were trapped in a tight range in subdued trade, dealers said.

China Daily/Agencies

(HK Edition 02/04/2010 page4)