Stocks end flat, led by Lenovo

Hong Kong shares reversed early losses to end flat Wednesday, as gains in Lenovo Group after a bullish forecast from Intel Corp slightly offset profit-taking in airlines on fading optimism of a one-time revaluation for the yuan. The benchmark Hang Seng Index ended up 0.08 percent, or 17.9 points, at 22,121.43, after falling 0.06 percent in the morning trading. The China Enterprises Index of top locally listed mainland stocks closed up 0.02 percent at 12,842.47.

City to invest more reserves in alternative assets

Hong Kong's de facto central bank is putting its growing reserves into higher risk, higher return hedge funds and private equity, the Financial Times said Wednesday. Private equity firm Kohlberg Kravis Roberts & Co has received funds from the Hong Kong Monetary Authority, sources told the FT, while Bain Capital and the Blackstone Group have been in talks about investments with the authority. The increased focus on alternative investments reflected a shift by the monetary body, which has had a tradition of keeping its reserves in safe liquid assets, the report said.

"The HKMA does not comment on the investment operations of the Exchange Fund because of the market-sensitive nature of the information," said the authority in an emailed response.

Citic Securities, CLSA to discuss Asia venture

Citic Securities Co, China's largest brokerage by market value, and Credit Agricole SA's Asian brokerage affiliate are in talks to create a venture in the region, said four people with knowledge of the matter.

The combined entity would include the Paris-based bank's CLSA Asia-Pacific Markets, said the people, who declined to be identified because the talks are private. Citic Securities and Credit Agricole's corporate and investment-banking unit would each own stakes in the venture, which may have assets valued at more than 1 billion euros ($1.4 billion), they said.

Jonathan Slone, chief executive officer of Hong Kong-based CLSA, declined to comment, as did Citic Securities spokesman Raymond Tang. It wasn't clear what assets Beijing-based Citic Securities would transfer to the venture, or how much of it each company may own.

The companies may announce an initial agreement next week, the people said.

Glorious to start bonds sale

Glorious Property Holdings Ltd, which first sold shares in Hong Kong in September, plans its first sale of bonds denominated in US dollars, according to a person familiar with the matter.

The property company will meet bond investors in Hong Kong on April 15, Singapore on April 16, London on April 19, New York on April 20 and Boston on April 21, said the person, who declined to be identified before a public announcement.

Glorious said Wednesday in a filing that it hired Deutsche Bank AG, JPMorgan Chase & Co and Standard Chartered Bank to manage a sale of senior notes. Moody's Investors Service assigned a provisional rating of B2, its fifth-highest non-investment grade ranking, to the dollar debt, according to a statement from the New York-based company Wednesday.

Agencies - China Daily

(HK Edition 04/15/2010 page2)