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