China seeks stake in Aussie gas project
The biggest mainland energy producer, China National Petroleum Corporation, is said to have offered to buy a minority stake in a liquefied natural gas project in Australia. The state-controlled company will face competition from rivals from Japan, Taiwan and South Korea. China is buying energy assets abroad to acquire technology needed to explore resources at home.
HSI closes 53 higher
Hong Kong stocks rose after eurozone finance ministers approved a bailout package for Greece. The Hang Seng Index gained 53 points to 21,478 on turnover of HK$ 64.63 billion, after being in negative territory for most of the day. The Shanghai Composite Index, ended up 17 points at 2,381.
Thai economy battered by floods
Official figures show that Thailand's economy contracted sharply in the last three months of 2011, after severe flooding disrupted manufacturing. Gross domestic product fell by nine percent in the final quarter, compared with the previous year. Economists had forecast a fall of up to six percent.
China to lower bank reserve ratio again
China's central bank plans to lower the ratio of funds that banks must hold as reserves to spur slowing economic growth. The People's Bank of China said the reserve requirement ratio will be decreased on Friday to 20.5 percent from 21 percent. The cut will free up tens of billions of dollars for lending at a time when the growth rate is expected to drop from last quarter's 8.9 percent to closer to 8 percent. The cut is the second in two months. The bank had pushed the rate to a record 21.5 percent in June after consumer prices rose by a three-year high of 5.5 percent the previous month. Inflation rose by a strong 4.5 percent over a year earlier in January.
US clinches China film market deal
U.S. Vice President Joe Biden has said China has agreed to significantly improve market access for American films. The agreement allows more American exports to China of 3D, IMAX, and similar enhanced-format movies on favourable commercial terms. The deal was announced after Vice President Xi Jinping's whirlwind tour to the United States. "This agreement with China will make it easier than ever before for U.S. studios and independent filmmakers to reach the fast-growing Chinese audience, supporting thousands of American jobs in and around the film industry," Mr Biden said in a statement. The U.S. film industry has long complained about China's tight restrictions on the number of foreign films allowed into the country each year, a limit that they say helps fuel demand for pirated DVDs that are widely available in China. While the quota of 20 foreign films per year remains in place, Beijing granted other concessions that pleased Hollywood. The Office of the United States Trade Representative said the deal strengthens the opportunities to distribute films through private enterprises rather than the state film monopoly, and ensures fairer compensation levels for U.S. blockbuster films distributed by Chinese state-owned enterprises.
Proview threatens to sue Apple
The Shenzhen-based company, Proview Technology, has threatened to sue Apple for trademark infringement in the United States. The company said it will choose one of three American law firms to sue Apple for US$ 2-billion in compensation. Its chief executive Yang Rongshan said he wanted to protect his trademark rights for the iPad, and stop Apple selling the tablet computer in China. He denied that he was trying to get compensation from Apple to bail out the cash-strapped company.
Tsing Yi site sold for HK$1.3b
The government has sold a site in Tsing Yi for HK$ 1.3 billion by tender. Kongwell Logistics won the bid over another contender - TY2 Limited. The site has been set aside for shipping-related purposes.
New Zealand halts China farm sale
New Zealand's High Court on Wednesday overturned a decision to allow a Chinese company to buy a bankrupt dairy farm group, in a case which has sparked heated debate about foreign land ownership. The court ordered the government to reconsider its approval for China's Shanghai Pengxin Group to purchase the 16-property Crafar Farms group, saying it had overstated the deal's economic benefits to New Zealand. The proposal has met with fierce opposition in the farm-reliant country, with critics fearing an influx of foreign investors will snap up New Zealand's prime agricultural land.
HSI closes 30 higher
Hong Kong stocks closed in positive territory, reversing early losses after Moody's downgraded the debt ratings of six European nations, including Italy, Spain and Portugal. The Hang Seng Index added 30 points to close at 20,917 on turnover of HK$ 55.94 billion. The Shanghai Composite Index ended down 7 points at 2,344.
Repayment ‘extended’ of local govt debt
The Financial Times says Beijing has instructed Chinese banks to extend the repayment period of loans to local governments. It said the extension would avoid a wave of defaults by local governments. It said some governments had their loans extended by as long as four years. Earlier, the National Audit Office said local governments owed a total of 10.7 trillion yuan by the end of 2010.