10 MARkets Monday November 20,...
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10 ❘ MARkets CONTACT US AT: 8351-9531, [email protected] Monday November 20, 2017 Stock Indices (Friday) Shanghai Composite Index Shanghai B Shenzhen Component Index Shenzhen B Last 342.10 Open 349.56 High 350.43 Low 341.54 Change -2.15% Last 11,292.93 Open 11,519.92 High 11,555.87 Low 11,292.93 Change -2.12% Last 1,187.87 Open 1,216.12 High 1,216.12 Low 1,187.38 Change -2.27% Last 3,382.91 Open 3,392.68 High 3,403.29 Low 3,373.30 Change -0.48% Chinese RMB 100 Hong Kong dollars 84.87 100 U.S. dollars 662.77 100 Japanese yen 5.8603 100 Euros 780.28 100 British pounds 874.68 100 Swiss francs 666.85 100 Canadian dollars 519.66 100 Australian dollars 502.79 100 Singapore dollars 488.71 Hong Kong dollar 7.8113 Japanese yen 112.00 Euro 0.8483 British pound 0.7568 Swiss franc 0.9889 Canadian dollar 1.2765 Australian dollar 1.3218 Singapore dollar 1.3549 U.S. dollar Exchange Rates (Friday) CHINA will begin a pilot program this year to transfer shares in State-owned firms to social security funds in an effort to make up for shortfalls in the nation’s pension program, according to a notice published by the government Saturday. The new policy calls for an ini- tial 10 percent of equity in State- owned firms to be transferred to the National Council for Social Security Fund, the national pen- sion fund, with the plan limited to a small number of central and provincial firms in an initial trial to start this year. China is working to expand resources of its pension funds as the population ages and obligations are set to rise. Many provinces are already under severe pressure to meet pen- sion repayments. A recent effort has seen the government for the first time allow pension funds, whose investments had been limited to low-yielding bank deposits and treasuries, to invest in stocks and other assets. The latest plan would see cen- tral and regional social security funds directly hold shares in State-owned companies, allow- ing retired workers to benefit from the dividends generated by government-owned assets. The State Council, or Cabinet, said in a statement the plan would help to develop a more fair and sustainable pension program, while also promoting reform of State firms. “Over the course of economic development and the aging of the population, pressure on basic pension payments has continuously increased,” the council said in the statement, which was dated Nov. 9 but released Saturday. “In order to fully achieve generational equity and ensure achievements from develop- ments of State firms are shared by all, it has been decided to transfer a portion of State- owned capital to fortify social security funds.” According to the plan, shares in five to seven central State firms will be transferred this year, with the program to be expanded next year. Pension funds, including the National Council for Social Security Fund that will hold the equity in central State firms, are not allowed to sell shares for at least three years, the notice said. The finance ministry said on its website that the program would only impact a small number of listed State firms and would not lead to a change in the capital structure of listed State firms. (SD-Agencies) China to transfer State assets to pension fund Great Wall Motor celebrates launch of new brand A staff member checks a Great Wall Motor model during an auto show in Beijing in this file photo. Great Wall Motor Co., China’s largest sport utility vehicle (SUV) and pickup manufacturer, held a ceremony last week in Guangzhou to celebrate the first anni- versary of the launch of its premium brand — Wey. Great Wall Motor unveiled the premium brand in Guangzhou on Nov. 15 last year in an effort to expand into the high-end SUV market. SD-Agencies SHARES in the world’s most valuable distiller, Shanghai-listed Kweichow Moutai, tumbled 4.01 percent Friday after domestic media questioned whether the index heavyweight’s skyrocket- ing stock price had risen too much, posing a risk to the over- all market. Kweichow Moutai, which makes baijiu, a fiery grain alco- hol popular in China, has seen its share price double this year on good earnings and bullish market sentiment. Shares climbed more than 4 percent Thursday to a record high close of 719.11 yuan (US$108.4), giving the firm a market capitalization of more than 900 billion yuan, making it China’s eighth most valuable listed company. But they fell as much as 5.7 percent Friday, closing 4.01 percent lower at 690.25 yuan, after Xinhua published a piece saying the company’s soaring stock price was not justified by its earnings. “It is as if Moutai is not selling liquor, but golden water,” said the Xinhua article. The report, issued late Thurs- day, blamed “shortsighted spec- ulation” for the stock’s rise. Moutai broadly concurred in a statement Friday morning that likely added to the shares’ fall. The statement said some stock analysts had issued “overly-high target prices and valuations” that the company did not agree with. (SD-Agencies) Moutai tumbles as media question share surge CHINA Huishan Dairy Hold- ings Co., struggling under bil- lions of dollars worth of debt, is preparing for provisional liquidation in a legal escalation of one of the most spectacular collapses of a Hong Kong-listed firm in recent years. Shares in the group, once a hot property with investors, have been suspended since they plunged 85 percent without warning in March, after which it revealed missed loan payments and the disappearance of its finance director. The move comes as creditors in China and offshore jostle for position to get their money back from the firm, whose debts totaled at least 38 bil- lion yuan (US$5.73 billion) at the end of July, according to a work-out plan. Hong Kong-based restructur- ing lawyers said the move by Huishan to file for provisional liquidation could actually help give it “breathing room” against creditors and in theory allow it more sway to choose an outside party to take on the role. “What the firm is doing is taking control of its own destiny by looking to appoint a provi- sional liquidator at the listed company level and putting their own choice of person in the role,” one Hong Kong-based restructuring lawyer said. “They’ll feel they have a little more control over the outcome rather than having someone who comes at it from a creditor’s per- spective,” the person said. Huishan said earlier this month it had come to a agreement with most of its mainland creditors to restructure. The biggest of these include Bank of China Ltd., China Minsheng Banking Corp. and Industrial and Commercial Bank of China Ltd. Creditors of its Hong Kong- listed unit include a consortium of banks led by HSBC Holdings, China CITIC Bank International and Hang Seng Bank, which extended a syndicated loan to the listed vehicle. (SD-Agencies) Huishan prepares for provisional liquidation CREDITORS of Chongqing Iron & Steel Co. (Chongqing Steel) have voted to accept a debt-for- equity swap plan to restructure nearly 40 billion yuan (US$6.04 billion) in debts, the com- pany said in a stock exchange announcement late Friday. The creditor approval eases some of the pressure on Chongq- ing Steel as debt-servicing costs rise and after heavy losses in 2015 and 2016. As China steps up its campaign to reduce financial risk, more State-owned enterprises (SOEs) may be forced to restructure debts, with “non-systemic” local SOEs expected to face more financial strain in the months ahead, some analysts say. Chongqing Steel’s debt plan will see the company pay in cash portions of claims up to and including 500,000 yuan, and issue new shares for the portions of claims exceeding that level. In a sign of their eagerness to reclaim money, lenders will receive new shares at 3.68 yuan per share, a 71 percent pre- mium to their last traded price in Shanghai. The shares, to be issued before the end of the year, will not be subject to a lock-up period, a source said. Trading of Chongqing Steel’s Shanghai-listed A shares has been suspended since Aug. 1. The firm also is listed in Hong Kong. Lenders to the steelmaker welcomed the approval of the debt-for-equity swap. “We’re at the back of the line behind the banks and so on, so speaking for myself this is a relatively good outcome,” said a creditor who asked not to be named. China unveiled guidelines last year to reduce rising corporate debt, including encouraging debt-for-equity swaps. (SD-Agencies) Chongqing Steel creditors agree to debt-for-equity swap
Transcript of 10 MARkets Monday November 20,...
10 x MARketsCONTACT US AT: 8351-9531, [email protected]
Monday November 20, 2017
Stock Indices (Friday)
Shanghai Composite Index
Shanghai B
Shenzhen Component Index
Shenzhen B
Last 342.10 Open 349.56 High 350.43 Low 341.54Change -2.15%
Last 11,292.93 Open 11,519.92 High 11,555.87 Low 11,292.93 Change -2.12%
Last 1,187.87 Open 1,216.12 High 1,216.12 Low 1,187.38 Change -2.27%
Last 3,382.91 Open 3,392.68 High 3,403.29 Low 3,373.30 Change -0.48%
Chinese RMB
100 Hong Kong dollars 84.87100 U.S. dollars 662.77 100 Japanese yen 5.8603 100 Euros 780.28 100 British pounds 874.68100 Swiss francs 666.85 100 Canadian dollars 519.66 100 Australian dollars 502.79 100 Singapore dollars 488.71
Hong Kong dollar 7.8113 Japanese yen 112.00 Euro 0.8483 British pound 0.7568 Swiss franc 0.9889Canadian dollar 1.2765 Australian dollar 1.3218 Singapore dollar 1.3549
U.S. dollar
Exchange Rates (Friday)
CHINA will begin a pilot program this year to transfer shares in State-owned fi rms to social security funds in an effort to make up for shortfalls in the nation’s pension program, according to a notice published by the government Saturday.
The new policy calls for an ini-tial 10 percent of equity in State-owned fi rms to be transferred to the National Council for Social Security Fund, the national pen-sion fund, with the plan limited to a small number of central and provincial fi rms in an initial trial to start this year.
China is working to expand resources of its pension funds as the population ages and obligations are set to rise. Many provinces are already under severe pressure to meet pen-sion repayments.
A recent effort has seen the government for the fi rst time allow pension funds, whose investments had been limited to low-yielding bank deposits and treasuries, to invest in stocks and other assets.
The latest plan would see cen-tral and regional social security funds directly hold shares in State-owned companies, allow-ing retired workers to benefi t from the dividends generated by government-owned assets.
The State Council, or Cabinet, said in a statement the plan
would help to develop a more fair and sustainable pension program, while also promoting reform of State fi rms.
“Over the course of economic development and the aging of the population, pressure on basic pension payments has continuously increased,” the council said in the statement, which was dated Nov. 9 but released Saturday.
“In order to fully achieve generational equity and ensure achievements from develop-ments of State fi rms are shared by all, it has been decided to transfer a portion of State-owned capital to fortify social security funds.”
According to the plan, shares in fi ve to seven central State fi rms will be transferred this year, with the program to be expanded next year.
Pension funds, including the National Council for Social Security Fund that will hold the equity in central State fi rms, are not allowed to sell shares for at least three years, the notice said.
The fi nance ministry said on its website that the program would only impact a small number of listed State fi rms and would not lead to a change in the capital structure of listed State fi rms.
(SD-Agencies)
China to transfer State assets to pension fund
Great Wall Motor celebrates launch of new brandA staff member checks a Great Wall Motor model during an auto show in Beijing in this fi le photo. Great Wall Motor Co., China’s largest sport utility vehicle (SUV) and pickup manufacturer, held a ceremony last week in Guangzhou to celebrate the fi rst anni-versary of the launch of its premium brand — Wey. Great Wall Motor unveiled the premium brand in Guangzhou on Nov. 15 last year in an effort to expand into the high-end SUV market. SD-Agencies
SHARES in the world’s most valuable distiller, Shanghai-listed Kweichow Moutai, tumbled 4.01 percent Friday after domestic media questioned whether the index heavyweight’s skyrocket-ing stock price had risen too much, posing a risk to the over-all market.
Kweichow Moutai, which makes baijiu, a fi ery grain alco-hol popular in China, has seen its share price double this year on good earnings and bullish market sentiment.
Shares climbed more than 4 percent Thursday to a record high close of 719.11 yuan (US$108.4), giving the fi rm a market capitalization of more than 900 billion yuan, making it China’s eighth most valuable listed company.
But they fell as much as 5.7 percent Friday, closing 4.01 percent lower at 690.25 yuan, after Xinhua published a piece saying the company’s soaring stock price was not justifi ed by its earnings.
“It is as if Moutai is not selling liquor, but golden water,” said the Xinhua article.
The report, issued late Thurs-day, blamed “shortsighted spec-ulation” for the stock’s rise.
Moutai broadly concurred in a statement Friday morning that likely added to the shares’ fall.
The statement said some stock analysts had issued “overly-high target prices and valuations” that the company did not agree with.
(SD-Agencies)
Moutai tumbles as media question share surge
CHINA Huishan Dairy Hold-ings Co., struggling under bil-lions of dollars worth of debt, is preparing for provisional liquidation in a legal escalation of one of the most spectacular collapses of a Hong Kong-listed fi rm in recent years.
Shares in the group, once a hot property with investors, have been suspended since they plunged 85 percent without warning in March, after which it revealed missed loan payments and the disappearance of its fi nance director.
The move comes as creditors in China and offshore jostle for position to get their money back from the fi rm, whose
debts totaled at least 38 bil-lion yuan (US$5.73 billion) at the end of July, according to a work-out plan.
Hong Kong-based restructur-ing lawyers said the move by Huishan to fi le for provisional liquidation could actually help give it “breathing room” against creditors and in theory allow it more sway to choose an outside party to take on the role.
“What the fi rm is doing is taking control of its own destiny by looking to appoint a provi-sional liquidator at the listed company level and putting their own choice of person in the role,” one Hong Kong-based restructuring lawyer said.
“They’ll feel they have a little more control over the outcome rather than having someone who comes at it from a creditor’s per-spective,” the person said.
Huishan said earlier this month it had come to a agreement with most of its mainland creditors to restructure. The biggest of these include Bank of China Ltd., China Minsheng Banking Corp. and Industrial and Commercial Bank of China Ltd.
Creditors of its Hong Kong-listed unit include a consortium of banks led by HSBC Holdings, China CITIC Bank International and Hang Seng Bank, which extended a syndicated loan to the listed vehicle. (SD-Agencies)
Huishan prepares for provisional liquidation
CREDITORS of Chongqing Iron & Steel Co. (Chongqing Steel) have voted to accept a debt-for-equity swap plan to restructure nearly 40 billion yuan (US$6.04 billion) in debts, the com-pany said in a stock exchange announcement late Friday.
The creditor approval eases some of the pressure on Chongq-ing Steel as debt-servicing costs rise and after heavy losses in 2015 and 2016.
As China steps up its campaign to reduce fi nancial risk, more State-owned enterprises (SOEs) may be forced to restructure debts, with “non-systemic” local
SOEs expected to face more fi nancial strain in the months ahead, some analysts say.
Chongqing Steel’s debt plan will see the company pay in cash portions of claims up to and including 500,000 yuan, and issue new shares for the portions of claims exceeding that level.
In a sign of their eagerness to reclaim money, lenders will receive new shares at 3.68 yuan per share, a 71 percent pre-mium to their last traded price in Shanghai. The shares, to be issued before the end of the year, will not be subject to a lock-up period, a source said.
Trading of Chongqing Steel’s Shanghai-listed A shares has been suspended since Aug. 1. The fi rm also is listed in Hong Kong.
Lenders to the steelmaker welcomed the approval of the debt-for-equity swap.
“We’re at the back of the line behind the banks and so on, so speaking for myself this is a relatively good outcome,” said a creditor who asked not to be named.
China unveiled guidelines last year to reduce rising corporate debt, including encouraging debt-for-equity swaps.
(SD-Agencies)
Chongqing Steel creditors agree to debt-for-equity swap
