The House will vote this week on legislation pressing China to raise the value of its currency, after a panel approved the measure showing support for U.S. manufacturers before the November election.
The Ways and Means Committee adopted the measure by voice vote after the panel’s top Republican,Dave Camp of Michigan, joined Democrats in endorsing the bill. Panel Chairman Sander Levin of Michigan, a Democrat, said the full House will vote on the legislation on Sept. 29.
The measure would let companies petition for higher duties on imports from China to compensate for the effect of a weak currency. President Barack Obama “does not take a position on this specific legislation,” Jeff Bader, his director of Asian affairs, said.
Hess Corp., the fifth-biggest U.S. oil company, will explore for crude in China in cooperation with PetroChina Co., the nation’s largest oil company,
Hess and PetroChina will work with dense rock in the Daqing oil field, a formation that’s similar to the Bakken basin in North Dakota, where Hess is already exploring, Jay Wilson, a Hess spokesman, said by telephone.
Canada China Backlash
Canadian Trade Minister Peter Van Loan said China’s currency policies risk fueling a public backlash against Chinese investments in the North American country, and allowing the yuan to move freely could reduce trade imbalances.
“The risk for the Chinese is that if Canadians politically begin to feel that they are too disadvantaged you’re going to start seeing the kind of reactions you’re seeing in the United States,” Van Loan, 47, said an interview in his parliamentary office. “We don’t want to see that. We want to keep trade open, we want to keep investment open.”
China Wants Climate Deal
China wants a binding global climate-change agreement by late 2011, the China Economic Times reported, citing Li Gao, a Chinese negotiator.
China, the world’s largest greenhouse gas emitter, hopes definite measures for the next decade will be implemented after the United Nations conference in South Africa scheduled for the end of next year, Li told the newspaper. The biggest obstacle to reaching an accord is the U.S., he said.
Bright Food Group Co. Ltd., Shanghai’s biggest food and dairy company, is in discussions about a possible purchase of the U.K.’s United Biscuits from Blackstone Group and PAI Partners.
The Sunday Times reported that Bright Food is in exclusive talks to buy United Biscuits, the maker of Jaffa Cake and McVitie’s cookies, in a transaction that may be valued at 2 billion pounds ($3.2 billion).
“Bright Food is now in talks about buying United Biscuits,” Chen Chunshan, a company spokesman in Shanghai, said in a phone interview, declining to comment further.
Boshiwa International Holding Ltd., a retailer of children’s clothing, raised HK$2.49 billion ($321 million) in an initial public offering in Hong Kong after selling stock at the top of the forecast range, said two people familiar with the sale.
Boshiwa sold 500 million shares at HK$4.98 each, said the people, who declined to be identified because the information was private. The Shanghai-based company initially offered shares at HK$3.88 to HK$4.98 each, according to its prospectus.
Hong Kong Billionaire Lee Shau-Kee may pay about HK$9 billion for a majority stake in Television Broadcasts Ltd., Apple Daily reported Sept. 25, without saying where it obtained the information.
Lee will acquire the stakes held by TVB Chairman Sir Run Run Shaw and Shaw Brothers (Hong Kong) Ltd., the newspaper said.
China Southern Buy and Hold
China has something the U.S. lacks, an airline stock that investors can buy and hold, according to Kenneth Fisher, the billionaire chairman of Fisher Investments Inc. and columnist for Forbes magazine.
China Southern Airlines Co., the nation’s largest carrier, is a stock that investors can retain for “5 to 10 years,” Fisher, 59, said in an interview on “Bloomberg Surveillance” with Tom Keene. The company is “a functional representation of China’s basic need to engage in global trade to grow,” said Fisher, who oversees $35 billion from Woodside, California. “You can’t really do that in this day and age without a global airline.”
THE FOLLOWING STOCKS MAY BE ACTIVE TODAY:
Bright Dairy & Food Co. (600597 CH) won regulatory approval from New Zealand to buy a 51 percent stake in Synlait Milk Ltd.
COFCO Property (Group) Co. (000031 CH) sold 9.04 million China Merchants Bank Co. (600036 CH) A-shares through the Shanghai Stock Exchange to replenish its working capital. The sale will generate around 80 million yuan income for COFCO. COFCO shares gained 0.2 percent to 6.82 yuan on Sept. 21, China Merchants Bank shares fell 0.2 percent to 12.87 yuan.
Chinasoft International Ltd. (354 HK): The information technology company said it agreed to buy software and computer services company MMIM Technologies Inc. for as much as $91 million in cash and new stock. The stock has been suspended since Sept. 22.
Datang Telecom Technology Co. (600198 CH) is to buy 16% stake in Uniscope for 63.8 million yuan.
Industrial & Commercial Bank of China Ltd. (601398 CH): The nation’s biggest listed lender said shareholders approved a plan to raise as much as 45 billion yuan ($6.7 billion) from a rights offer to replenish capital. The stock added 0.3 percent to 3.97 yuan on Sept. 20 before trading was suspended.
Shimao Property Holdings Ltd. (813 HK): The developer and Taiwan’s Farglory Land Development Co. (5522 TT) expect to start construction of a commercial-residential project in China by year-end, Farglory Chairman Chao Teng-hsiung said in Taipei. Shimao fell 0.7 percent to HK$13.34.
Kingboard Chemical Holdings Ltd. (148 HK): The maker of materials used in electronics said it privately sold 225 million shares in Kingboard Laminates Holding Ltd. (1888 HK) for HK$1.71 billion. Kingboard Chemical fell 1.4 percent to HK$38.50. Kingboard Laminates fell 0.6 percent to HK$7.86.
Pacific Plywood Holdings Ltd. (767 HK): The forest-products maker said it will pay HK$52 million in cash, new shares and convertible notes for a 51 percent stake in Hong Kong moneylender Head & Shoulders Finance Ltd. The stock gained 2.6 percent to 19.9 Hong Kong cents.
Texwinca Holdings Ltd. (321 HK): The textile and clothing maker will boost its stake in unit Baleno Holdings Ltd. for HK$203.3 million, paid for with HK$60.9 million in cash and 16 million shares. The stock fell 2.3 percent to HK$8.70.
Xingjiang Goldwind Science & Technology Co. (002202 CH), a windpower company, said it plans to raise as much as HK$7.1 billion ($915 million) selling shares for the first time in Hong Kong. The stock added 0.9 percent to 19.79 yuan.
Xing Lin Medical Information Technology Co. (8130 HK): The medical-information-systems company said it will raise as much as HK$41.2 million to repay a promissory note through a placing of 227.8 million shares at 18.1 Hong Kong cents each. It will buy, for HK$45 million, a company that is developing a regional health-care information collaboration system. The stock fell 0.9 percent to 22.2 Hong Kong cents
Zhejiang Jinggong Science & Technology Co. (002006 CH) plans to raise as much as 582 million yuan ($87 million) selling as many as 46.5 million shares in a private placement. The stock rose 10 percent, the most allowed in one trading day, to 16.24 yuan on Sep. 14 before trading was suspended.
Zhejiang Guyuelongshan Shaoxing Wine Co. (600059 CH) will raise the ex-factory price for its wine from the years 2000 to 2009 by 11 percent to 17 percent.
Zijin Mining Group Co. (601899 CH) said the damage caused to the Xinyi Mine from Typhoon Fanapi would cost 19 million yuan.
BLOOMBERG TELEVISION GUESTS SCHEDULED FOR TODAY: 7:10 Neil Beveridge, Sandord C. Bernstein, Senior Analyst 8:40 Paul Midler, Author of “Poorly Made in China”
To contact the editor responsible for this story: Bruce Grant at email@example.com.