GREATER CHINA DAYBOOK: Bank Reserve Ratios May Rise in New Year

China may order higher reserve requirements for banks to counter capital inflows and a possible jump in lending at the start of 2011, said Li Daokui, an adviser to the central bank.

The Communist Party’s Politburo said the nation will move next year to a “prudent” monetary policy from the current “moderately loose” stance, with a continued “proactive” fiscal policy, Xinhua News Agency reported Dec. 3.

     WHAT TO WATCH:
* Cathay Pacific Airways Ltd. (293 HK) Chief Executive Officer
Tony Tyler will leave to run trade body; Chief Operating Officer
John Slosar will replace him
* Changsha Zoomlion Heavy Industry starts a marketing tour for a
Hong Kong IPO that may raise as much as $1 billion
* Weekly benchmark coal prices at Qinhuangdao port in China to
be released today
* Weekend transactions of used homes rose in Hong Kong as some
owners cut prices after expanded government efforts to cool the
property market
* Temasek and State Grid Corp. of China are said to buy a
combined $110 million of shares in the Hong Kong IPO of China
Huaneng Group’s renewable-energy unit. Bank of China Ltd. will
buy a $30 million stake, according to the sale’s prospectus.
* Argentina says it imposed a 149-percent levy on Chinese
elevator motors for five years
* China wins a case against the European Union at the World
Trade Organization for the first time, with the WTO ruling that
the EU imposed duties on Chinese screws and bolts unfairly
* China’s government says it aims to boost grain output in the
northeast to more than 100 million tons by 2015
* China Guangdong Nuclear Power Group says South Africa could
have 10 reactors in service by 2030

     ECONOMY: Economic data today and events with estimates
where relevant:
* Goldman Sachs holds economic outlook briefing, 11 a.m.
* Taiwan November Consumer Price Index data, 4 p.m.

     EQUITY MOVERS: Selected stocks that may rise or fall
following news since the evening of Dec. 3:
* Bank shares may be active on China’s move to “prudent”
monetary policy next year from “moderately loose” now
* Carmakers may be active after the China Securities Journal
reported the government will next year end a preferential
purchase tax for vehicles with engines no larger than 1.6 liters
* Agile Property (3383 HK) buys residential building land in
Foshan in Guangdong province for 530 million yuan
* Beijing Shougang (000959 CH) said it will close iron and
coking plants in Beijing by year-end
* Changan Auto (000625 CH) November vehicle sales rise to
185,204 from 128,735 a year earlier
* China CAMC Engineering Co. (002051 CH ) won a 7.15 billion
yuan contract with Venezuelan state firms to build
infrastructure, plant crops and supply agricultural machines
* China Flavors & Fragrances (3318 HK) will issue 650,000 shares
as a gratuity
* China National Chemical Engineering (601117 CH) says a unit
wins 1.6 billion yuan order for a petrochemicals project in
Xinjiang
* China Natural Investment (8250 HK) is buying a Hong Kong
advertising company for HK$33.6 million, funding the purchase
with a private placing
* China Suntien (956 HK) registers a wind-farm project under the
United Nations convention on climate change
* Chuang’s Consortium (367 HK) agrees to sell a property in Hong
Kong’s Deepwater Bay for HK$435 million
* Emperor International Holdings Ltd. (163 HK) will buy a real
estate project in Shanghai from unit Emperor Entertainment Hotel
Ltd. (296 HK) with new shares, and make a buyout offer
* Huayi Electric (600290 CH) says it receives China Securities
Regulatory Permission for a private placement
* Morning Star Resources (542 HK) is selling its securities unit
* Shun Tak (242 HK) says in an e-mail that Chairman Stanley Ho,
89, “is on track to recovery” and still steers strategic
decisions

     ANALYST RATINGS:
* China Petroleum & Chemical Corp. (386 HK) cut to “reduce” at
BNP Paribas
* China National Materials (1893 HK) rated new “overweight” at
JPMorgan
* Singamas (716 HK) cut to “neutral” at Macquarie research
* Weichai Power (2338 HK) cut to “neutral” at Shenyin Wanguo

     CONFERENCES/CORPORATE PRESENTATIONS:
* Cross-Straits Interactions and Power Relations in East Asia
organized by the National Policy Research in Taipei

     GOVERNMENT:
* Taiwan Finance Minister Lee Sush-der to take questions in
Parliament about state-controlled companies, 9 a.m.


     BLOOMBERG TV INTERVIEWS:
* 7:40   Joseph Cheng, City University of Hong Kong, Professor
* 8:10   Rob Minikin, Standard Chartered, Senior FX Strategist
* 9:40   Markus Rosgen, Citigroup, Chief Asian Strategist
* 10:10  Ronald Wan, China Merchants Securities, MD
* 13:00  Jim Walker, Asianomics, Chief Economist

To contact the editor responsible for this story: Joshua Fellman at jfellman@bloomberg.net

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