City yuan trade settlements 953b

Yuan-denominated trade settlements through Hong Kong banks reached 953 billion yuan in the seven months to end-July, Donald Tsang, Hong Kong chief executive, said in Edinburgh on Thursday, according to an official transcript.

Hong Kong accounted for more than 80 percent of all cross-border trade settled in the mainland currency, Tsang said. The chief executive hopes to see Scottish companies selling shares in Hong Kong "soon".

Oasis, CIO fined for JAL trade

Hong Kong's securities regulator fined hedge fund Oasis Management (Hong Kong) LLC, which helped manage more than $3 billion at its peak, and its chief investment officer for 2006 trades of Japan Airlines Corp shares.

Hong Kong-based Oasis and CIO Seth Fischer have each been fined HK$7.5 million ($961,767), the Securities and Futures Commission (SFC) said in a statement on Thursday. They have also been publicly reprimanded for the trades that the regulator alleged appeared to have been designed to drive down the closing price of the carrier and benefit Oasis funds.

SFC has followed in the footsteps of global regulators to step up scrutiny of hedge funds. The regulator is appealing a Hong Kong High Court judge's refusal to ban New York-based hedge fund Tiger Asia Management LLC from trading in securities or derivatives in the city for alleged insider trading of shares in two of China's largest state banks.

Value Partners plans loan venture

Value Partners Group Ltd agreed to form a venture with state-owned Chengdu Industry Investment Group Co to develop small loan business in Chengdu, according to a statement to the Hong Kong Stock Exchange on Thursday.

Value Partners will own 90 percent of the venture, which will have an initial capital of 300 million yuan, the statement said.

Stocks climb on easing concern

The Hang Seng Index (HSI) rose for a second day on Thursday, after German and French leaders said they are convinced Greece will remain in the euro zone, and as insurers including China Life Insurance Co advanced.

The HSI rose 0.71 percent to 19181.50 at the close. The index fell as much as 0.6 percent after UBS AG, Switzerland's biggest bank, said it made a trading loss of about $2 billion because of unauthorized trading at its investment bank and may post a loss in the third quarter.

Cosco Pacific rose 1.2 percent to HK$9.08. Hutchison Whampoa Ltd advanced 1.3 percent to HK$66.60, while HSBC Holdings Plc increased 1.5 percent to HK$62.65.

Futures on the Standard & Poor's 500 Index rose 0.2 percent on Thursday. In New York, the index gained 1.4 percent on Wednesday after French President Nicolas Sarkozy and German Chancellor Angela Merkel said they are "convinced" Greece will remain in the euro area and that Greek budget cuts will restore stability to markets.

China Life increased 2.8 percent to HK$18.96 after saying income from insurance premiums in the period from January 1 to August 31 was about 237 billion yuan ($37 billion), compared with 228 billion yuan a year earlier.

PICC Property & Casualty Co rose 3.4 percent to HK$12.18 after saying eight-month premium income was 117.7 billion yuan. Evergrande gained 6 percent to HK$3.71 after saying sales in August more than doubled from a year earlier.

Futures on the HSI rose 1.1 percent to 19200. The HSI Volatility Index tumbled 12 percent to 34.80.

Bloomberg - Reuters

(HK Edition 09/16/2011 page2)