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China Day Ahead: Potash Approach; Newbridge Sells Ping An Insurance Stake
Chinese investors approached Alberta Investment Management Corp., a Canadian pension fund, to consider a joint counterbid for Potash Corp. of Saskatchewan Inc., the fund’s chief executive officer said.
The Alberta fund wasn’t interested in an offer for the fertilizer maker, Leo de Bever said. Potash Corp., the world’s largest producer of its namesake crop nutrient, is the target of a $40-billion hostile bid from Melbourne-based BHP Billiton Ltd., the world’s largest mining company.
“We’ve been approached, just like other pension plans, by intermediaries trying to broker a deal involving Canadian pension plans and Chinese investors,” De Bever said in a phone interview. “It never got to the stage of actually dollars and cents and structure.”
Newbridge Sells Ping An
Newbridge Capital LLC, the Asian unit of TPG Capital, raised about HK$9.1 billion ($1.2 billion) selling shares in Ping An Insurance (Group) Co., China’s second-largest insurer.
The private equity firm sold about 139.1 million shares at HK$65.30 each, the high end of the offering range and 1.2 percent lower than Ping An’s last closing price in Hong Kong, according to terms of the sale obtained by Bloomberg News.
Newbridge raised $1.24 billion by selling a stake in the Shenzhen, China-based insurer four months ago. The company follows Allianz SE and Goldman Sachs Group Inc. in reaping profits from holdings in Chinese financial firms.
Blacklist for Bad Manufacturers
China will create a blacklist of manufacturers producing poorly made products as part of an effort to enhance the value of the “Made in China” label, Xinhua News Agency said, citing Minister Li Yizhong.
The Ministry of Industry and Information Technology will seek to reward companies that have good records for producing quality goods and punish the makers of shoddy products, Xinhua said, citing Li’s comments to a forum in Beijing.
Fan Gang on Economy
China doesn’t face the risk of inflation this year, as it did in 2006 and 2008, because the consumer price index is likely to be 3 percent to 4 percent, according to Fan Gang, , a former member of the People’s Bank of China monetary policy committee.
The government should “gradually” adjust money supply and slow the rate of growth in the issue of money, Fan said. The rapid increase in foreign exchange reserves has enlarged the monetary base, resulting in a deposit reserve ratio of 17 percent, he said.
Fan also said China should increase spending on social insurance, redistribute income and improve the livelihood of low-income people as part of economic restructuring aimed at preventing asset bubbles and overheated growth. Structural reform of industries should be left to the market, Fan said.
AIA Hong Kong IPO
AIA Group Ltd., the main Asia unit of American International Group Inc., submitted preliminary documents to the Hong Kong Stock Exchange for an initial public offering, according to two people familiar with the filing.
The filing yesterday means New York-based AIG is probably aiming for late October or early November for the IPO, said one of the people, who declined to be identified because the information isn’t public.
MARKETS:
U.S. stocks rose, with the Standard & Poor’s 500 Index building on its biggest rally in almost two months, after retail sales improved, initial jobless claims fell and pending home sales unexpectedly increased.
Nordstrom Inc., J.C. Penney Co. and Limited Brands Inc. advanced at least 3 percent after reporting August same-store sales that beat analyst estimates. Burger King Holdings Inc. gained 25 percent after affiliates of 3G Capital offered $4 billion for the company. Mariner Energy Inc. sank 2.5 percent after an explosion at its Gulf of Mexico rig.
The S&P 500 increased 0.9 percent to 1,090.09 at 4 p.m. in New York, headed for the biggest two-day gain since early July. The Dow Jones Industrial Average climbed 50.63 points, or 0.5 percent, to 10,320.10.
THE FOLLOWING STOCKS MAY BE ACTIVE TODAY:
Property Developers: China’s property market is in a “very big bubble” that may last until the government increases interest rates and introduces a real-estate tax to curb prices, according to StarRock Investment Management. China Vanke Co. (000002 CH), the nation’s largest developer, rose 1.2 percent to 8.57 yuan.
In Hong Kong, home sales rose 33 percent in August to HK$69.2 billion, the highest in almost three years as demand outweighed government efforts to curb home prices by tightening mortgage rules and pledging to increase land supply. Sun Hung Kai Properties Ltd. (16 HK), the city’s biggest developer by market value, gained 2.2 percent to HK$111.20.
Bank of Ningbo Co. (002142 CH): The lender said it has received approval from the China Securities Regulatory Commission to sell as many as 383.8 million new shares in a private placement. The stock fell 0.4 percent to 13.10 yuan.
Beiqi Foton Motor Co. (600166 CH): The automaker will invest 5 million euros to set up a research center in Germany that will develop battery and electronic control systems, the company said in a Shanghai stock-exchange statement. The stock gained 3.4 percent to 22.9 yuan.
China Precious Metal Resources Holdings Co. (1194 HK): The mining company agreed to buy a company that operates two gold mines in China for HK$1.38 billion in cash, new shares and convertible notes. The stock gained 3 percent to HK$1.72.
Ching Hing (Holdings) Ltd. (2932 HK): The textile company will sell some of its units, including weaving and dying companies, to shareholder Cotton Row Ltd. for HK$42.7 million. The stock will resume trading in Hong Kong today. It fell 24 percent to 38 Hong Kong cents yesterday before suspending.
Chongqing Changan Automobile Co.(000625 CH): The automaker said it sold 114,297 vehicles in August, taking the total to 1.2 million in the first eight months of this year, compared with 871,903 units a year earlier. The stock rose 6.4 percent to 10.98 yuan.
Country Garden Holdings Co. (2007 HK): The real estate developer said contracted sales jumped 66 percent in the first eight months from a year earlier to about 18.4 billion yuan. The stock gained 0.4 percent to HK$2.38 today.
Industrial & Commercial Bank of China Ltd. (601398 CH): The world’s largest bank by market value said it sold 25 billion yuan ($3.67 billion) of six-year convertible bonds after receiving 2.6 trillion yuan of demand for the sale. The stock rose 0.5 percent to 4.10 yuan.
Jiangling Motors Corp. (200550 CH): The commercial vehicle partner with Ford Motor Co. sold 15,527 vehicles in August, compared with 8,227 units a year earlier, the company said in a statement on its website. The stock gained 5.1 percent to 20.61 yuan.
Man Wah Holdings Ltd. (1999 HK): The furniture-maker signed a contract to supply 26.4 million yuan of sofas and sofa-beds to Bombardier Sifang (Qingdao) Transportation Ltd. for use on China’s high-speed trains. The stock fell 0.9 percent to HK$8.75.
Sino Land Co. (83 HK): The Hong Kong developer controlled by billionaire Robert Ng said full-year profit excluding revaluation gains fell 2.6 percent to HK$3.51 billion after it booked fewer apartment sales. The stock was unchanged at HK$13.58.
China Vanke Co. (000002 CH): The nation’s largest publicly traded developer said August sales rose 149 percent from a year earlier to 12 billion yuan. The shares gained 1.2 percent to 8.57 yuan.
Wharf (Holdings) Ltd. (4 HK): The owner of two of Hong Kong’s largest shopping centers has bought a building site in Shanghai’s Songjiang district for 992 million yuan. The stock gained 0.1 percent to HK$42.30.
Xiamen Changelight Co. (300102 CH): The manufacturer of solar cells, wafers and chips plans to build a light-emitting diode production plant in Yangzhou, Jiangsu province. The stock jumped 10 percent to 79.70 yuan, as it resumed trading after a three-day halt.
Xingda International Holdings Ltd. (1899 HK): The maker of radial tire cords and bead wires will raise HK$762.3 million through the issue of 138.6 million new shares at HK$5.50 each to fund enhanced production facilities and develop new products. Xingda will resume trading in Hong Kong today. It gained 0.8 percent to HK$5.95 on Sept. 1.
ZTE Corp. (763 HK): The telecommunications equipment maker may sell 38 million to 40 million mobile phones in the second half, Caijing said, citing Xu Yulong, the company’s securities affairs representative. ZTE sold 28 million cell phones in the first half, the magazine said on its website. The stock gained 1.2 percent to HK$29.20
EVENTS SCHEDULED FOR TODAY:
Hong Kong court hearing on Securities and Futures Commission case against Hontex International Holdings Co. (946 HK).
BLOOMBERG TELEVISION GUESTS SCHEDULED FOR TODAY:
8:10 Charles Kim, Mirae Asset Securities, Head of Korean
Equity Sales, Seoul
9:10 Neil Daswani, Standard Chartered Bank, Head of
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