GREATER CHINA DAYBOOK: U.S. Dialogue Briefing; Raising Electricity Prices
China’s Vice Finance Minister Zhu Guangyao and Vice Foreign Minister Cui Tiankai brief media at 10 a.m. in Beijing about the U.S.-China Strategic and Economic Dialogue to be held in Washington next week.
Top U.S. officials will press their Chinese counterparts at the May 9-May 10 meetings to let the yuan adjust at a “faster rate,” David Loevinger, the U.S. Treasury’s senior coordinator for China affairs, told reporters in Washington on May 5.
TOP MEDIA HEADLINES TODAY: * The director of China’s electricity regulator said the nation is able to make short term increases in on-grid power prices, Xinhua reported, citing Tan Rongyao, director of the State Electricity Regulatory Commission * The northern Chinese province of Inner Mongolia plans to consolidate the region’s rare earth industry, the National Business Daily reported, citing local government plans * The Chinese Academy of Social Sciences expects more real- estate market curbs this year, Shanghai Securities News reports * Textile and garment export growth may slow to about 15 percent this year from 24 percent in 2010, China Securities Journal says * The value of deals agreed at the Canton Fair increased 5.8 percent from a year earlier to $36.9 billion, Xinhua says * China’s outbound direct investment will exceed foreign direct investment in three years, the China Daily reported, citing Zheng Chao, a commercial counselor at the Ministry of Commerce WHAT TO WATCH: * China Banking Regulatory Commission says there’s no change to its rules on mortgage down payments * Lenovo media briefing in Beijing on gaming console, 3 p.m. * Ford Motor may release April sales figures as early as today * General Motors’ April sales drop 4.6 percent to 203,367 vehicles, the first decline since December, as incentives end * Glencore may seek to merge with Xstrata Plc within 11 months of the IPO, Sanford C. Bernstein Ltd. says in a report * The creation of U.S. government stockpiles of rare-earth minerals would worsen a tight supply situation, Molycorp says * Valuations of China e-commerce, social-network and video sites are “frothy,” says Dixon Doll, co-founder of venture firm DCM MARKETS: * S&P 500 retreats 0.9 percent to 1,335.10 * Dow Jones Industrial drops 1.1 percent to 12,584.17 * Crude oil for June delivery falls $9.44 to $99.80 a barrel ECONOMY: * Oilchem.net publishes once-every-two-weeks survey of Chinese oil-refinery run rates, 2 p.m. EQUITY MOVERS: Selected stocks that may rise or fall: * Drugmakers may be active after China says it aims to have one to three nationwide drug distributors with 100 billion yuan ($15.4 billion) of annual sales each by 2015 * Automakers may be active after China finds some U.S.-imported vehicles have hurt the domestic auto industry * Beijing Enterprises (392 HK) prices $600 million of 10-year bonds at 195 basis points more than similar-maturity treasuries, and $400 million of 30-year bonds at 210 basis points * BYD (1211 HK) will use proceeds from its planned Shenzhen IPO to expand car, battery and auto accessory production; China’s market regulator will review the listing application on May 9 * China Merchants China Direct (133 HK) invests $11 million in social networking company Renren through a joint venture * China Resources Power (836 HK) will receive 150 two-megawatt wind turbines from Gamesa in the second half * Far East Global (830 HK) will pay $28 million for 55 percent in building-façade engineering company Red Holdings Group * Kerry Properties (683 HK) puts 400 Lions Rise apartments on sale tomorrow, seeking to raise HK$5 billion ($643 million) * Lincang Xinyuan Germanium (002428 CH) receives exploration permits from the Yunnan government * Longyuan Power (916 HK) April power production gains 17 percent on year, driving by wind-power output * Midland (1200 HK) will close all branches in Shanghai that handle second-hand property sales, China Business News says * Pudong Road & Bridge (600284 CH) plans to issue up to 2 billion yuan of bonds * Real Gold (246 HK) CEO Qiu Haicheng resigns and leaves board and is replaced by Executive Director Ma Wenxue * Shanghai Electric (601727 CH) and Alstom may form a boiler JV next April, with annual sales of 3 billion euros ($4.4 billion) * Shenzhen Agricultural (000061 CH) plans to raise up to 2.5 billion yuan in a private placement of up to 151 million shares * Sing Tao (1105 HK) profitability isn’t affected by Hong Kong’s inflation, the company’s Standard newspaper says * Semiconductor Manufacturing International Corp. (981 HK) said it will issue 85 million convertible preferred shares to Datang Telecom Technology & Industry Holdings Co. at HK$5.39 each * Standard Chartered (2888 HK) hasn’t held talks with South Africa’s Nedbank, regional CEO Viswanathan Shankar says * Taiwan Semiconductor Manufacturing Co. (2330 TT) will double capacity in the next five years, the Economic Daily News reports * Wumart (8277 HK) proposes issuing bills with maturities of as long as one year to pay bank loans * Zijin Mining (601899 CH) buys $100 million of shares in Glencore International’s initial public offering RATINGS CHANGES: * Huadian Power (600027 CH) raised to “hold” at Bank of China GOVERNMENT: * China Banking Regulatory Commission says there’s no change to its rules on mortgage down payments BOND SALES: * Taiwan to auction NT$100 Billion 364-day certificates of deposit, 12:30 p.m. CORPORATE EVENTS/CONFERENCES: * Lenovo media briefing in Beijing on gaming console, 3 p.m. * China Banking Regulatory Commission says there’s no change to its rules on mortgage down payments BTV HIGHLIGHTS (Hong Kong time): * 8:10 Dariusz Kowalczyk, Credit Agricole, senior economist/strategist * 8:40 Kirk Yang, Barclays Capital Asia, managing director
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