China companies find mixed profits in overseas M&A
The most important and market-moving stories from the Chinese-language media
Just 13% of companies involved in overseas mergers and acquisitions made substantial profits in 2015, according to the Shanghai Securities Daily, citing government data. About 39% made some profit from the deals, while 24% were flat and another 24% fell into the red. Overseas M&A continues to grow with deals reaching US$67.44 billion in the first nine months versus last year’s US$54.44 billion.
Foreign buying of yuan bonds rises
Foreign buying of yuan-denominated bonds rose 16.786 billion yuan in October from the previous month to 743.218 billion yuan, according to the China Central Depository & Clearing Co, reported by Shanghai Securities Journal. Analyst think the yuan’s inclusion in Special Drawing Rights helped drive the gain, along with negative interest rates seen in some overseas markets.
NDRC in drive to stabilise coal prices
Power utilities face demands from the National Development and Reform Commission to sign longer-term supply deals with coal companies to try and stabilise prices, according to the Economic Information Daily. The NDRC wants to achieve a base price for 5500 Kcal thermal coal at between 535-540 yuan/ton for the agreements, the report said.
十八周连涨破600元大关 “煤超疯”来袭 煤电谈判博弈再起
Trade faces downward pressure in fourth quarter
Imports and exports will face downward pressure in the fourth quarter, said the Commerce Ministry, according to a report in the Shanghai Securities Journal.
Logistics index little changed in October
The China Logistics Prosperity Index (LPI) was at 59.2 in October, up 0.2 percentage point from last month, according to figures by China Federation of Logistics and Purchasing reported by Caixin. The China Storage Index gained a slight 0.01 percentage point in the same month while the Highway Freight Index rose 8.7 percentage points. Railway freight experiencing a significant increase. The breakdown of goods showed demand for household goods as well as fabric and medical products remains strong.
Guangzhou investigates ‘fake divorce’ mortgages
Banks in Guangzhou are cracking down on people staging ‘fake divorces’ to get around rules that impose larger down-payments on families buying a second property, Sina Finance reports. Recently divorced individuals will face stringent checks as part of efforts to reduce property speculation.
State-owned groups team up in overseas projects
A group of state-owned companies teamed up to win a railway contract in southern Malaysia in the first such collaboration for such enterprises, Securities Daily reported. The group comprised China Railway Construction Corp., China Railway Group and China Communications Construction.