ICBC, Agricultural Bank, PetroChina to Report Earnings: China Week Ahead

Industrial and Commercial Bank of China Ltd., Agricultural Bank of China, PetroChina Co. and SAIC Motor Corp. are among companies scheduled to announce first-half earnings this week.

China Petroleum & Chemical Corp., Asia’s biggest refiner, and China Construction Bank Corp., the nation’s second-largest lender, will hold briefing this week to discuss their earnings. Sinopec reported a 6.7 percent increase in first-half net income and China Construction Bank posted a 20 percent gain second- quarter profit.

The nation’s benchmark stock index fell on the final day of trading last week, paring a weekly gain as investors speculated inflation will delay monetary easing and provisions for local- government loans will erode bank profits. The Shanghai Composite Index fell 1.7 percent on Aug. 20, the biggest decline since Aug. 10, trimming last week’s gain to 1.4 percent.

Jim Coulter, co-founder of Fort Worth, Texas-based private- equity company TPG, will attend an event with Pudong New District government in Shanghai today. Organizers didn’t disclose details of the event.

China’s yuan rose 0.1 percent last week to 6.7902 per dollar after a government report showed the current-account surplus increased in the second quarter, fueling speculation the central bank will allow greater flexibility in the currency. Twelve-month non-deliverable forwards strengthened 0.16 percent to 6.6788, reflecting bets the currency will advance 1.7 percent in a year, according to data compiled by Bloomberg.

Current-Account Surplus

The surplus increased 30 percent to $70.5 billion from the same period a year earlier, according to preliminary figures posted yesterday on the website of the State Administration of Foreign Exchange, the nation’s top currency regulator.

The current account, the broadest measure of trade, dropped 8 percent to $124.2 billion in the first half, SAFE said. The yuan has strengthened 0.6 percent since the People’s Bank of China scrapped a two-year dollar peg on June 19.

Government bonds were little changed last week on concerns economic growth is slowing. Industrial output gained 13.4 percent in July, the least in 11 months, the government reported on Aug. 11.

The yield on the 2.76 percent note due in July 2017 was at 2.88 percent, and the price of the security was 99.26 per 100 yuan face amount, according to the National Interbank Funding Center. A basis point is 0.01 percentage point.

The following is a list of important events in China this week:

Event                                                  Date
TPG and Shanghai’s Pudong government hold event        23
Sinopec earnings briefing                              23
China Resources Power first-half earnings              23
China Resources Gas first-half earnings                23
July metals trade                                      23
South African President Jacob Zuma visits China        23-26
July energy trade                                      23
China Construction Bank earnings press conference      24
Geely Auto first-half earnings                         24
Hong Kong & China Gas Co.                              24
David Carr, Standard Chartered global head of sales,   24
holds group interview
Shenzhen Development Bank first-half earnings          25
SAIC Motor first-half earnings                         25
Denway Motors’ Shares delisting                        25
China Telecom first-half earnings                      25
ICBC first-half earnings                               26
Bank of China first-half earnings                      26
Brilliance China first-half earnings                   26
China Oilfield first-half earnings                     26
PetroChina first-half earnings                         26
Agricultural Bank first-half earnings                  27
Sinotruk Hong Kong first-half earnings                 27
Citic Resources first-half earnings                    27
China Shenhua Energy first-half earnings               27
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