CDB to sell yuan bonds annually

China Development Bank (CDB) will issue yuan bonds in Hong Kong every year and the size of the issues will get bigger, its chairman said Thursday, pointing to a fast-growing supply of such products.

The state-run policy bank last issued yuan bonds in Hong Kong Monday, offering 3 billion yuan worth of three-year debt yielding 2.7 percent.

"We will fully utilize Hong Kong's position of an international financial center to issue (yuan) bonds," Chen Yuan, China Development Bank's chairman told reporters.

HSBC appoints pvt bank heads

HSBC has appointed new heads for its Asian and Europe, Middle East and African private banking operations.

Alexandre Zeller will take the newly created position of CEO for private banking in Europe, Middle East and Africa, Desmond Liu will become head of private banking for North Asia, while Nancie Dupier will head its South-East Asian private banking operations, the bank said in a statement on Thursday.

Liu and Dupier replace Monica Wong, who has decided to retire, the bank said.

Passenger fuel surcharges rise

The Civil Aviation Department (CAD) Thursday gave approval for passenger fuel surcharges levied by three airlines to be increased for the period from November 1 to 30, 2010.

The new maximum levels of fuel surcharges will be $108 for short-haul flights and $521 for long-haul flights, which represent an increase of 8 percent and 3 percent from the current maximum levels for short and long-haul flights respectively. The applicable surcharge levels are based on the ticket issue date.

CNOOC to pull out of Kenyan blocks

CNOOC is pulling out of its two Kenyan licences but wants a 20 percent participation in another five blocks to be operated by Tullow Oil, a Kenyan government official said Thursday.

CNOOC spudded a well in Kenya's Block 9 in partnership with Canada's Africa Oil and Taiwan's CPC, which showed seven horizons of gas prospects. It tested four of them, said Patrick Nyoike, permanent secretary at the energy ministry.

"CNOOC is pulling out by December. I believe Africa Oil will remain because they have expertise in oil exploration. CNOOC was in L2, which they are also surrendering. My best bet is they don't have expertise for oil exploration," he told Reuters.

Sihuan raises $741m in IPO

Sihuan Pharmaceutical Holdings raised $741 million Thursday after its IPO was sold at the top of its indicated range, a source with direct knowledge of the deal said.

Hong Kong has become a top choice for healthcare companies seeking to raise cash, thanks to the high valuations investors give new listings, as China promises to spend billions to reform its antiquated medical system.

Shanghai Pharmaceuticals, China's second biggest drug company in terms of revenue, will undertake a $1.2-$1.5 billion IPO next year.

Sihuan, which delisted in Singapore last year, sold 1.25 billion new shares in Hong Kong IPO at HK$4.60 each, the top end of the range of HK$3.88 to HK$4.60 each, the source said.

Bloomberg - Reuters

(HK Edition 10/22/2010 page2)