PICC plans $3b Hong Kong IPO

People's Insurance Company (Group) of China may seek as much as $3 billion in an initial public offering in Hong Kong in October or November while postponing a Shanghai listing, two people with knowledge of the matter said.

The state-owned insurer, which initially planned a dual listing in the two cities, may put the Shanghai portion of the sale on hold as Chinese regulators have yet to approve the deal, according to the people, who asked not to be identified as the deliberations are private.

PICC had aimed to raise as much as $5 billion through the IPO in Hong Kong and Shanghai, people familiar with the deal said in May. That would have made it this year's third-biggest stock market debut after Facebook Inc and Japan Airlines Co, and the largest in Hong Kong since October 2010, data compiled by Bloomberg show.

Goldman cuts earnings forecast

Goldman Sachs Group Inc lowered earnings growth forecasts for China's companies and Credit Suisse Group AG cut the nation's stock index targets as the economy slows.

Profits for companies in the MSCI China Index may increase 1.8 percent this year and 8.6 percent in 2013, compared with previous growth estimates of 6 percent and 12.3 percent, Helen Zhu and Timothy Moe, analysts at the US bank, wrote in a report dated on Monday.

Credit Suisse lowered its 12-month target for the index to 60 from 70, analysts Vincent Chan and Peggy Chan said in a report on Tuesday.

Third-quarter "earnings growth may not yet show a clear inflection point," Goldman's Zhu and Moe wrote. "We expect further earnings cuts in the coming months, albeit at a slower rate, as current revision sentiment is very weak already."

Next Media in talks to sell Taiwan biz

Next Media Limited said it was negotiating for the sale of its print media business in Taiwan

Taiwan assets under negotiation include Taiwan Apple Daily, Taiwan Sharp Daily and Taiwan Next Magazine Bundle, according to a statement to the Hong Kong stock exchange on Tuesday.

The company also said it's in "early stage" of talks and hasn't entered any binding agreement.

China Shenhua seeks bond sale

China Shenhua Energy's board will ask shareholders for approval for up to 50 billion yuan of bond sale.

The planned bond issue will have a maturity of not exceeding 10 years, according to a statement posted to Shanghai Stock Exchange.

HSI down on weak economic forecast

Hong Kong stocks fell after Moody's Investors Service cut the European Union's economic outlook and Societe Generale SA predicted weaker Chinese growth, which fueled speculation of more government stimulus.

Li & Fung Ltd, a supplier of clothes and toys to retailers that gets more than 80 percent of sales from abroad, fell 2.9 percent. Mongolia Energy Corp, a mineral and energy explorer, slumped 4.5 percent after saying it expects a first-half loss.

The Hang Seng Index slid 0.7 percent to 19429.91 at the close. The gauge has fallen five of the last seven trading days. The Hang Seng China Enterprises Index of mainland companies dropped 1 percent to 9195.78.

Futures on the Hang Seng Index retreated 0.5 percent to 19319. The HSI Volatility Index slid 1.5 percent to 20.17, indicating traders expect a swing of 5.8 percent for the equity benchmark in the next 30 days.

Bloomberg

(HK Edition 09/05/2012 page2)