8 June 2009 | China Economic Scan

8-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: China and Japan pledge to boost global economic recovery, Russia says yuan could be reserve currency in a decade, China may improve fuel pricing, China Green Agriculture to boost sales on demand, Bain Capital agrees to buy into China's GOME.

Top 5 headlines

China, Japan pledge to boost global economic recovery

• China and Japan on Sunday vowed to jointly promote world economic recovery during a meeting of top ministers and senior officials in Tokyo, Japanese Foreign Minister Hirofumi Nakasone said.
• Nakasone also said both countries would "cooperate in domestic economic measures, in actively supporting developing countries in Asia through international financial institutions, and in preventing protectionism."
• Nakasone was speaking after a day of talks with a Chinese delegation led by Vice Premier Wang Qishan that aimed to boost trade and cooperation between Japan and China, the world's second and third biggest economies respectively.

Russia says yuan could be reserve currency in decade

• China's yuan could become a world reserve currency in the next decade, Russia's finance minister said on Saturday, as Moscow seeks to whittle away at the U.S. dollar's dominance.
• "I think the shortest route would be if China liberalised its economy and allowed the convertibility of the yuan," said Finance Minister Alexei Kudrin, a close ally of Prime Minister Vladimir Putin.
• "This could take 10 years but after that the yuan would be in demand and it is the shortest route to the creation of a new world reserve currency and I think China needs to think about this," Kudrin said at a panel discussion at the St Petersburg International Economic Forum.

China May Improve Fuel Price-Setting Mechanism, Observer Says

• China’s planning agency is considering improving the mechanism under which fuel prices are adjusted, the Economic Observer reported, citing an unidentified government official.
• The move is aimed at curbing hoarding and speculating on gasoline, the report said, without providing more details.
• Under a mechanism introduced in December, China may adjust fuel prices when crude-oil costs change more than 4% over 22 straight working days, the NDRC said in May.

China Green Agriculture to Boost Sales on Demand

• China Green Agriculture Inc., a producer of organic fertilizer, plans to boost sales by up to 40% in each of the next 4 years through acquisitions and increased domestic demand, its chief financial officer said.
• “Chinese consumers, because of safety issues, are willing to pay a higher premium for organic food,” Ying Yang said in a phone interview from Denver. “We’ve been actively looking for opportunities domestically to acquire.”
• China Green Agriculture, which is based in Xian, China, fell -2.5% to $7.80. The shares have more than doubled since March 9, when they started trading on the American Stock Exchange.

Bain Capital agrees to buy into China's GOME: source

• U.S. private equity giant Bain Capital has agreed to buy a major stake in China's top home appliance retailer GOME, a source with direct knowledge of the deal said on Sunday.
• The 2 parties were still finalizing financial details at the weekend and an official announcement is expected as early as next week.
• On Wednesday, Bain entered into exclusive talks to buy a major stake in GOME, dubbed as China's Best Buy, after months of competition with other potential investors including Kohlberg Kravis Roberts and Warburg Pincus.

Source: China Economic Scan

6 June 2009 | China Economic Scan

6-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: Chinalco "Very Disappointed" with Rio Tinto deal collapse, inflation expectations could benefit stocks, ICBC buys Bank of East Asia's Canadian unit, China considers penalty tax on polluting businesses, Chinese stocks fall slightly but close the week up.

Top 5 headlines

Chinalco Is ‘Very Disappointed’ With Rio Rejection

• Aluminum Corp. of China, the nation’s largest producer of the material, said it is “very disappointed” with the rejection of its proposed $19.5 billion investment in Rio Tinto Group.
• “Our proposal presented an outstanding value creating opportunity for all Rio Tinto shareholders and would have provided a strong platform for a long-term strategic partnership between the two companies,” said Xiong Weiping, president of Chinalco, as it’s also known.
• The failed deal would have been the largest single foreign investment by a Chinese company. Rio, the world’s third-largest mining company, said today it will raise as much as $15.2 billion in a share sale, helping reduce $38.9 billion in debt.

Analyst: Inflation expectations benefit stocks

• Although surging prices are not good for the economy, inflation expectations can drive up asset prices and boost stocks in the Chinese market, a senior investment banker told the official China Securities Journal on Thursday.
• According to Frank Gong, JP Morgan's China chief economist, financial authorities worldwide are now taking various measures against economic recession and deflation.
• But these moves, if not well managed, could incur inflation risks in the future.

ICBC’s Canadian Foray May Prompt North American Push

• Industrial & Commercial Bank of China agreed to buy control of Bank of East Asia’s Canadian unit, gaining a foothold for expansion in North America with its first acquisition on the continent.
• ICBC is making the Canadian foray to “learn the lay of the land and decide whether or not to make a bigger push,” John Aiken, an analyst with Dundee Securities Corp., said in an interview. “ICBC has the potential to deploy a ton of capital within the domestic marketplace if they so choose.”
• ICBC, which has more customers than Russia has people and $247 billion of cash and equivalents, has spent more than $6 billion on acquisitions in Indonesia, Macau and South Africa during the past 2 years. Chairman Jiang Jianqing aims to triple the share of profit coming from abroad to 10%.

China mulls penalty tax on polluting businesses

• Zhang Lijun, vice minister of environmental protection, said collecting environmental taxes from polluting enterprises was one of the directions of the country's tax system reform.
• "It has been put on the agenda of the ministries of finance, environment protection and the state administration of taxation," Zhang told a press conference. "We are jointly studying the issue, and when conditions are ripe, we'll launch the taxation system on polluting enterprises."
• Zhang admitted that air in a few cities remained "very polluted" and the problem of acid rain remained serious.

China’s Stocks Decline, Paring Weekly Gain; Developers Retreat

• Chinese stocks slipped slightly on the Mainland with the Shenzhen Component down -0.62% to 10,667, the Shanghai Composite down -0.48% to 2,754, however The Hang Seng registered a gain of +0.96% to 18,680.
• Gemdale, the country’s fourth-largest developer by market value, retreated -1.6% after almost tripling this year. Haitong Securities dropped -2.3% as the stock traded near its priciest level in a year. Liquor maker Sichuan Swellfun gained +6.8% after Diageo boosted its stake in the parent.
• “Stocks are expensive so the rally needs a pause,” said Larry Wan, Shanghai-based deputy chief investment officer at KBC-Goldstate Fund Management Co., which oversees about $583 million in assets.

Financial Indicators:

Metric

Value

Point change

% change

Hang Seng Index	18,680	176.76	0.96%
Shanghai Composite	2,754	-13.35	-0.48%
Shenzhen Component	10,667	-66.61	-0.62%
TAIEX	6,767	-18.96	-0.28%
CNY/USD	6.8360	0.0032	0.05%

Source: China Economic Scan

5 June 2009 | China Economic Scan

5-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: BoCom said it expects Chinese CPI to fall again in May, Merrill Lynch says Chinese banks' debt funding costs to rise, Chery Automobile raised 2.9bln yuan in growth capital from private equity investors, BNP Paribas lowers Chinese stocks to neutral - says buy India instead, Chinese stocks fall slightly.

Top 5 headlines

BoCom expects negative CPI growth in H1

• China's Consumer Price Index (CPI) is set to record the fourth consecutive month of decrease in May and to remain negative in the first half of this year, according to a Bank of Communications (BoCom) report released Monday.
• Food prices are expected to drop slightly in May with 1.5 percentage points of the decline due to the tail-raising factor, which was the main reason for the CPI decline in May, according to the report.
• Based on data from the Ministry of Agriculture and the Ministry of Commerce, the report said CPI growth would be between minus 1.8% and minus 1.2% with the median minus 1.5% in May, making it the fourth consecutive month of negative growth since February this year.

Chinese Banks’ Debt Financing Costs Will Rise, Merrill Says

• Chinese banks face higher costs for selling subordinated bonds as tighter capital regulations stifle demand for the securities following a surge in sales, according to Bank of America's Merrill Lynch.
• Chinese banks sold 103 billion yuan ($15 billion) of bonds in the first 5 months this year, more than the combined tally for 2007 and 2008, Merrill analysts Winnie Wu, Alistair Scarff and Michael Li said in a report dated yesterday. Lenders plan another 700 billion yuan of sales before 2012, they said.
• “The window for banks’ cheap debt financing is closing in the next three years,” the analysts wrote. “The supply-demand dynamics will drive up the cost of future sub-debt financing.”

Chery nets 2.9b yuan for growth

• Chery Automobile Co, China's biggest automaker, said yesterday that it has raised 2.9 billion yuan from local private-equity investors to boost its development and expansion plans.
• "The capital will be used in our clean energy program, heavy-duty program and a new sedan plant we are planning to build," said Jin Yibo, Chery's spokesman.
• The investors, all local funds, include Bohai Industrial Investment Fund Management, which is majority owned by Bank of China; Tianjin-based CDH Investments; China Huarong Asset Management Corp; and Shenzhen-based China Science & Merchants Venture Capital Management Co Ltd, according to Chery's statement.

China Stocks Lowered at BNP Paribas; Switch to India

• China stocks were downgraded at BNP Paribas, which said investors should instead buy more Indian equities because valuations, fund flows and liquidity in the South Asian nation have become more favorable.
• Chinese shares were cut to “neutral” from “overweight,” analysts led by Clive McDonnell said in a report today, keeping India “overweight.”
• The Bombay Stock Exchange Sensitive Index may extend its rally by another 11%, BNP said, advising customers to buy State Bank of India and sell Chinese peers including Industrial & Commercial Bank of China Ltd.

Hong Kong’s Stocks Decline as Shippers Tumble on China Warning

• Chinese stocks fell slightly on Thursday with the Hang Seng down -0.40% to 18,503, the Shanghai Composite down -0.41% to 2,767, but Shenzhen Component closed up 0.20% to 10,734, but the TAIEX shaved off -1.55% to 6,786.
• Hopson, a Hong Kong-based developer of real estate in China, plunged -7.9%. Esprit Holdings, a Hong Kong-based global clothing retailer, declined -4.6% on concern product demand will decline after a worse-than-expected report on the U.S. services sector.
• Sinotrans Shipping, the dry- bulk arm of China’s third-largest shipping group, tumbled -7.4%. Shipping stocks accounted for six of the 10 biggest falls on the 201-member Hang Seng Composite Index. Trade faces “unprecedented difficulties,” Vice Commerce Minister Zhong Shan said yesterday.

Financial Indicators:

Metric

Value

Point change

% change

Hang Seng Index	18,503	-73.7	-0.40%
Shanghai Composite	2,767	-11.35	-0.41%
Shenzhen Component	10,734	21.41	0.20%
TAIEX	6,786	-107.08	-1.55%
CNY/USD	6.8328	0.0022	0.03%

Source: China Economic Scan

4 June 2009 | China Economic Scan

4-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: China says quick rebound in trade is unlikely, JP Morgan economist predicts housing price rally in China, Morgan Stanley raises Chinese stocks to 'neutral', Shanxi province plans coal futures exchange, Chinese stocks surge to 10-month high on Wednesday.

Top 5 headlines

China Says Quick Rebound in Trade Is Less Likely

• China said a quick rebound in trade is becoming less likely, with the nation’s exports and imports set to decline in the first half of this year.
• “China’s exports may start to grow as early as January after the major economies such as the U.S. and Japan gradually recover later this year,” said Xing Ziqiang, a Beijing-based economist at China International Capital Corp.
• Trade faces “unprecedented difficulties” and the outlook for the second half is not optimistic, Vice Commerce Minister Zhong Shan said in a statement about export credit insurance posted on the ministry’s Web site today. He didn’t elaborate on why a speedy recovery has become less likely.

Economist predicts housing price rally

• China's housing prices are predicted to rise by 5 to 10% this year and will keep a growth of 10% next year, Frank Gong, chief economist at JP Morgan, said.
• Hui Jianqiang, analyst of E-house China R&D Institute in Shanghai, echoed Gong's prediction as he said housing investment and sales are not in balance. "It is necessary for the government to adopt policies to lower the proportion of capital fund, in order to spur investment in real estate," Hui said.
• Urban residents have relatively high saving rates that will be sufficient to support consumption, Gong said. He added that the fast growing urban population indicates a huge domestic housing demand.

China Stocks Raised to ‘Neutral’ at Morgan Stanley

• China stocks were upgraded to “neutral” at Morgan Stanley, which said the growth in liquidity globally is boosting asset prices.
• The brokerage also increased its “base case” target for the MSCI China Index to 50.9 from 36.3, Morgan Stanley’s Hong Kong-based strategist Jerry Lou wrote in a note today. He had cut the rating on Chinese stocks to “cautious” in April.
• “A mini asset-economy upcycle, courtesy of aggressive policy-driven liquidity globally, could be developing,” Lou wrote. “Liquidity’s transference into borrowed prosperity could develop and carry the current market rally beyond 2009.”

Shanxi plans coal futures bourse

• Shanxi province, China's largest coal producer, said it has plans to establish the country's first coal and coke futures exchange to help stabilize the domestic market and secure a bigger voice in international pricing.
• "We have submitted a feasibility study to the authorities with the aim of establishing the market in 2012," said Wang Hua, director at the Shanxi provincial capital market development office.
• Shang Fulin, chairman of China Securities Regulatory Commission (CSRC), yesterday said at the sixth Shanghai Derivatives Market Forum that the CSRC would continue to encourage more futures products in China to help domestic enterprises hedge against financial risks.

China shares hit 10-month high, led by financials

• Chinese stocks surged again on Wednesday, the Shenzhen Component lead up +2.17% to 10,712, the Shanghai Composite rose +1.99% to 2,779, and the Hang Seng rose +1.02% to 18,576.
• Midsize lender Pudong Development Bank soared by the daily maximum of +10% to 28.73 yuan. Industrial & Commercial Bank of China, China's biggest commercial lender, soared +4.2% to 4.69 yuan. Bank of China gained +3.03% to 3.74 yuan.
• Property developers rose for a third day on hopes of a revival in China's real estate market. China Vanke, the country's biggest developer, advanced +6.1% to 10.84 yuan, while rival Poly Real Estate Group, surged +9% to 25.34 yuan.

Financial Indicators:

Metric

Value

Point change

% change

Hang Seng Index	18,576	187.39	1.02%
Shanghai Composite	2,779	54.29	1.99%
Shenzhen Component	10,712	227.98	2.17%
TAIEX	6,893	-55.94	-0.80%
CNY/USD	6.8306	-0.0049	-0.07%

Source: China Economic Scan

3 June 2009 | China Economic Scan

3-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: Geithner says China has confidence in US economy, China to speed up nuclear power development, China alocates $878m for low-rent housing, Goldman Sachs sells shares in ICBC for $1.91bln, Chinese stocks edge up on Tuesday.

Top 5 headlines

Geithner Says China Has Confidence in U.S. Economy

• Treasury Secretary Geithner said China, the biggest holder of U.S. Treasuries, has expressed confidence in the U.S. economy and the Obama administration’s actions to fight the recession.
• “China will be shooting themselves in the foot if they push this issue too hard,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “If they are too alarmist and contribute substantially to a dollar and Treasuries sell off, they are going to feel more pain than just about anybody in the world.”
• “You have established good working relationships with your Chinese colleagues and you are committed to increasing China-U.S. cooperation in tackling the international financial crisis,” President Hu Jintao said at a meeting at the Great Hall of the People. “I appreciate that.”

Official: China to speed up nuclear power development

• China's nuclear power capacity is expected to reach about 5% of the country's total power capacity by 2020, according to National Energy Administration (NEA).
• The target is higher than the original one set in 2007, which aimed for a nuclear power capacity of 40 million kw by 2020, taking up 4% of the total power capacity.
• At present, China's nuclear power takes up 2% of the total power generation, while coal-fired power covers more than 80% of the total. 15% of world power generation comes from nuclear energy.

China allocates $878 mln for low-rent house building fund

• China's Ministry of Finance (MOF) announced Monday that the central government had earmarked the second batch of 6 billion yuan (878 million U.S. dollars) as special fund for low-rent house building projects across the country this year.
• The central government allocated the first batch of 7 billion yuan fund for this purpose in April, thus completing the goal of providing 13 billion yuan of subsidy for this year.
• Figures released on May 21 by the National Development and Reform Commission, China's top economic planner, showed that 214,000 low-rent housing units had been built by April since the government launched the 4-trillion-yuan stimulus package last November, with construction on another 650,000 units underway nationwide.

Goldman Sachs Raises $1.91 Billion Selling Shares in ICBC

• Goldman Sachs Group, which wants to return $10 billion this month to the U.S. government, raised HK$14.8 billion ($1.91 billion) by selling shares of Industrial & Commercial Bank of China after the stock jumped 29% in two months.
• The New York-based firm sold 3.03 billion Hong Kong-traded shares, or a 0.9% stake in the Chinese bank, at HK$4.88 apiece.
• “It’s very opportunistic, and obviously they’re not the first to come to the market to do that,” said Douglas Ciocca, a managing director at Renaissance Financial Corp. “It’s a prudent reallocation of capital because they still have a big remaining stake in there.”

China’s Stocks Rise to 10-Month High; Developers Lead Advance

• Chinese stocks were mixed on Tuesday with the Hang Seng falling -2.64% to 18,389, but Shanghai Composite registered a small gain of +0.11% to 2,724, and Shenzhen Component rose +0.60% to 10,484.
• Huaxia Bank, partly owned by Deutsche Bank, dropped -1.1% to 10.08 yuan. The bank said 1.58 billion shares, or 32% of its share capital, will become tradable on June 8. The stock is owned by 25 of its biggest shareholders, it said.
• Anhui Jianghuai Automobile, China’s second- biggest light-truck maker, jumped +4.3% to 6.10 yuan after yesterday’s trading suspension. The company said it has no “immediate” plan for any restructuring that involves Chery Automobile Co. Ningbo Yunsheng Group lost -3.9% to 11.14 yuan. The company said its biggest shareholder sold 3.75 million shares, or 0.95% of the company’s total.

Financial Indicators:

Metric

Value

Point change

% change

Hang Seng Index	18,389	-499.51	-2.64%
Shanghai Composite	2,724	3.02	0.11%
Shenzhen Component	10,484	62.98	0.60%
TAIEX	6,949	-5.02	-0.07%
CNY/USD	6.8355	0.0084	0.12%

Source: China Economic Scan

2 June 2009 | China Economic Scan

2-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: Chinese PMI comes in at 53.1 for May, NDRC says gasoline and diesel benchmark retail prices to rise, Melco opens $2bln casino in Macau's Cotai strip, academics and industry practitioners say derivatives not a bad thing, Chinese stocks jump 3% on Monday.

Top 5 headlines

Chinese Manufacturing Grows, Adding to Evidence of Recovery

• The official Purchasing Manager’s Index (PMI) was at a seasonally adjusted 53.1 in May after registering 53.5 in April, the Federation of Logistics and Purchasing said.
• A reading of the PMI above 50 indicates an expansion.
• Industrial production growth may accelerate to 8% this quarter as stimulus spending gathers momentum, up from 7.3% last month and 5.1% in the first three months, the Ministry of Industry and Information Technology said May 22. Output may increase 10% in the second half, it added.

China to raise gasoline, diesel benchmark retail prices

• China will raise gasoline and diesel benchmark retail prices by 400 yuan (58.6 U.S. dollars) per tonne as of Monday, the National Development and Reform Commission (NDRC) said.
• The benchmark retail price for gasoline would increase by 7% and the price of diesel by 8%, according to the NDRC
• According to the new mechanism, China's domestic fuel prices are to be "indirectly linked" to global crude prices "in a controlled manner." China would adjust domestic fuel prices when global crude prices reported a daily fluctuation band of more than 4 percent for 22 working days in a row.

Melco Opens $2 Billion Casino in Macau’s Cotai Strip

• Melco Crown Entertainment Ltd. opens its City of Dreams casino today in a $2 billion bet that Macau will rebound from a slump that prompted rival Las Vegas Sands Corp. to halt construction on a neighboring project.
• The complex on Macau’s Cotai Strip has 516 gambling tables in a 420,000-square-foot casino, Hard Rock and Grand Hyatt hotels as well as a multimedia theater and shops run by DFS.
• “The gaming sector had a very bad year in 2008 because of a weakening Macau economy,” Winson Fong, who helps manage $2 billion at SG Asset Management H.K. Ltd., said. “Now, people are buying into the sector because as a speculative one, it tends to perform better during a recovery,”

'Let more firms trade in futures'

• Allowing more Chinese companies to trade in the international futures market is a better solution to protect State-owned enterprises (SOEs) from potential losses in overseas derivatives trading than simply blaming the investment banks that offer these products, experts said.
• Despite the fact that some SOEs have suffered enormous losses, derivatives continue to be a very important financial instrument for large corporations around the world, including Chinese companies, to hedge business risks, Hu Yuyue, a futures professor at Beijing Technology and Business University.
• According to the professor, a report from the International Swaps and Derivatives Association (ISDA) indicated that over 94% of Fortune 500 companies use derivatives as a tool to manage risks.

China Stocks Rise Most in Three Months as Manufacturing Expands

• Chinese stocks recorded strong gains with the Hang Seng up 3.95% at 18,889, the Shanghai Composite up 3.36% to 2,721, and the Shenzhen Component up 2.90% to 10,421.
• “The pick-up in the economy is better than expected and that’s giving investors a strong reason to buy,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which manages about $285 million.
• Jiangxi Copper, the country’s biggest producer of the metal, surged +9.1% and Industrial & Commercial Bank of China gained +3.7%. PetroChina climbed +4.9% after China increased fuel prices and crude oil rose to a 7-month high. China Vanke added +4.3% after the government eased requirements for real-estate projects.

Financial Indicators:

Metric

Value

Point change

% change

Hang Seng Index	18,889	717.59	3.95%
Shanghai Composite	2,721	88.35	3.36%
Shenzhen Component	10,421	293.43	2.90%
TAIEX	6,954	63.66	0.92%
CNY/USD	6.8271	-0.0054	-0.08%

Source: China Economic Scan

1 June 2009 | China Economic Scan

1-June-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: Chinese economists see risk in holding US bonds, Chinese MOFCOM to encourage foreign investment after a 22.5% fall in FDI, China's banking regulator and Finance Ministry warned banks on making risky loans, Chinese industrial profits drop 28%, China's Agricultural Bank may still be some time away from IPO.

Top 5 headlines

Chinese economists deem huge holding of US bonds "risky," split on way out

• On the first day of U.S. treasury secretary Timothy Geithner's visit to China, the Beijing-based Global Times published a survey of 23 famous Chinese economists on Sunday, saying that the majority of them deemed the vast holding of U.S. bonds "risky."
• Among the 23 experts polled, 17 said they believed that holding U.S. equities pose great risks to China's economy.
• However 15 of the interviewed economists said they were against the idea to quickly offload China's possession of U.S. debt as a means to strengthen the country's financial stability and decrease Beijing's vulnerability to the already ailing world economy.

China's Ministry Of Commerce To Encourage Foreign Invest

• The Chinese Ministry of Commerce said it would seek to actively encourage foreign investment in China, ahead of U.S. Treasury Secretary Timothy Geithner's official meeting with Chinese authorities next week.
• China's actual foreign direct investment fell 22.5% on year in April to $5.89 billion, bringing actual FDI in the first 4 months of this year to $27.67 billion, down 21% from a year earlier.
• There were roughly 666,000 foreign-invested companies in China as of end April, about 3% of the country's overall number of companies. These foreign-invested firms contributed to 29.7% of China's overall industrial output and 21% of the country's tax revenue in 2008.

China regulator warns banks on risky loans

• China's banking regulator and the Finance Ministry on Sunday warned banks against issuing risky loans, saying they must step up their risk management.
• Banks extended 5.17 trillion yuan ($757.2 billion) in loans in the first 4 months, exceeding the government's minimum target of 5 trillion yuan for all of 2009 and fanning fears among analysts that banks were taking undue credit risks.
• In offering loans, banks must make a careful assessment of the borrowers' needs, to ensure the company in question is not using the money for 'blind expansion', the statement said.

China Jan-Apr industrial profits drop 28 pct yr/yr

• Chinese industrial profits in the first 4 months in 22 provinces fell 27.9% from a year earlier, narrowing a drop seen in Q1, the National Bureau of Statistics (NBS) said.
• In April, 23 out of 39 sectors saw their profit growth rebound or their losses narrow, the NBS said in a statement on its website (www.stats.gov.cn).
• Petroleum refining and coking industry profits reached 26.66 billion yuan ($3.9 billion) in the first 4 months, surging 181.3% year on year. The electricity sector made a profit of 2.19 billion yuan as of the end of April, in sharp contrast with a 1.37 billion loss made in Q1.

China’s Agricultural Bank May Not List This Year, Finet Reports

• Agricultural Bank of China probably won’t list its shares this year, Finet news service reported, citing 2 bank executives it didn’t name.
• The bank plans to open branches in New York and London this year to prepare for a global commodity-trading system before seeking a public listing.
• Agricultural Bank expects to acquire licenses to start operations in the U.S. and U.K. next year.

Source: China Economic Scan