Greater China Daybook: August PMI; Premier Wen Reiterates Economic Policy
Chinese manufacturing may have expanded last month at a faster rate than in July, signaling that the world’s second-biggest economy is withstanding increased interest rates and tightened liquidity.
The Purchasing Managers’ Index, scheduled to be released by the China Federation of Logistics and Purchasing at 9 a.m. today, may be 51, compared with 50.7 in July, according to the median estimate of 14 economists surveyed by Bloomberg.
TOP MEDIA HEADLINES TODAY: * Premier Wen Jiabao says stabilizing prices remains nation’s top priority, China Securities Journal reports * Domestic insurers may be allowed to invest in derivatives products in Hong Kong, Shanghai Securities News reports * China faces increasing pressure for month-on-month gains in consumer prices, the Shanghai Securities News cited Liu Shijin, deputy director of the State Council’s Development and Research Center * A Chinese warship challenged an Indian naval vessel in international waters in July, the Financial Times says * Vice Premier Li Keqiang said Hong Kong and Macau need to be “on alert” for global economic changes, China News Service says * Shanghai builders sell 99 homes priced at more than 100,000 yuan a square foot over eight months, Shanghai Daily says * China issued new food-safety regulations for restaurants, snack bars and company and school cafeterias, Xinhua says WHAT TO WATCH: * World Bank President Robert Zoellick starts visit to China * Macau releases August casino gambling revenue * CLSA conference: “China 2011 macro outlook: China amid global slowdown,” 11:30 a.m. * Sino-Forest CEO Allen Chan and CFO David Horsley received backdated or mispriced stock options, according to a lawsuit * Simon Murray, a director of Sino-Forest and chairman of Glencore, said he has no intention of stepping down from either * China’s top priority is stable prices and it doesn’t plan to alter economic-policy direction, Wen Jiabao writes * Benigno Aquino and Hu Jintao sign a pact targeting $60 billion in trade and investment, playing down a dispute over sea borders * China’s millionaires will account for about half of Asia’s rich and hold more than half of the region’s wealth by 2015, according to Julius Baer Group and CLSA * Saab Automobile is close to getting a loan of about 1 billion kronor ($157 million) to avert bankruptcy, three people say * Real Gold will hire an independent forensic specialist to probe its accounts and dealings with the controlling stockholder * The U.S. State Department criticizes proposed changes in China’s criminal procedure law as at odds with promised rights * China appeals a WTO ruling that its export controls over raw materials including coke and magnesium violate global rules * Shougang Corp.’s Peruvian iron-ore miners go on strike over pay, their fourth work stoppage in 18 months ECONOMICS: * China Manufacturing PMI, 9 a.m. * HSBC Taiwan manufacturing PMI, 10 a.m. * HSBC China manufacturing PMI, 10:30 a.m. * Macau releases August casino gambling revenue EQUITY MOVERS: * Banks: China’s top priority is stable prices and it doesn’t plan to alter economic-policy direction, Wen Jiabao writes * Insurers: Premium income in the first seven months of this year was 905.5 billion yuan, the regulator says * Casino operators: Macau releases August casino revenue * Acer (2353 TT) expects to book gain of NT$158 million from disposal of 6.5 million shares in E-Life Mall (6281 TT) * Air China (753 HK) will get a 1 billion yuan capital injection from its parent to replenish funds after an investment * Baoshan Steel (600019 CH) will post “good” profit growth next year as demand rises, GM Ma Guoqiang says * Beijing Enterprises (392 HK) first-half net income HK$1.65 billion; estimate was HK$1.65 billion * BYD Co. (1211 HK) will set up a separate photovoltaic-product sales unit, Reuters says * China Cosco (1919 HK) resumes charter payments following a dispute, according to DryShips and Jinhui Shipping * China Forestry (930 HK) first-half loss 130 million yuan compared with profit of 429 million yuan; resumes harvesting * Compal (2324 TT) second-quarter parent net income NT$3.3 billion against estimate of NT$3.5 billion * Cosco Intl (517 HK) first-half net income drops to HK$234.1 million from HK$341.8 million a year earlier * Formosa Petrochemical (6505 TT) signs $900 million of loans * Galaxy (27 HK) Deputy Chairman Francis Lui sees Macau gambling revenue rising 30 percent to 40 percent this year * HannStar Display (6116 TT): Agrees to pay $14.9 million in U.S. anti- trust case * Hong Kong Exchanges (388 HK) accepted 26 applications in August for IPOs * National Social Security Fund Sells 9 million ICBC (1398 HK) shares, the Standard says * Neo Solar (3576 TT) first-half parent loss NT$754 million versus profit NT$1.31 billion * PCCW (8 HK) said to plan raising up to $2 billion listing its telecom assets as a business trust in Hong Kong in late October * Playmates Toys (869 HK) plans to reintroduce its Teenage Mutant Ninja Turtles line in the second quarter of 2012 * ProMOS (5387 TT) delays reporting of 2Q financial statements as co. and accountants fail to agree on asset-evaluation method * Quanta Computer (2382 TT) second-quarter net income of NT$5.4 billion matches estimate * Shimao (813 HK) first-half net income rises to 3.3 billion yuan from 2.1 billion yuan * SmarTone (315 HK) full year net income HK$754.1 million; estimate HK$674.1 million RATINGS CHANGES: * China Communications Services (552 HK) raised to “buy” at ICBC * China Communications Services (552 HK) raised to “outperform” at Macquarie * China Unicom (762 HK) raised to “hold” at Daiwa * Dongfeng Motor (489 HK) raised to “buy” at ICBC * Lee & Man Paper (2314 HK) cut to “neutral” at JPMorgan * Phison (8299 TT) price target cut to NT$175 at Samsung * Sa Sa (178 HK) cut to “neutral” at JPMorgan * ZTE (763 HK) cut to “hold” at Samsung Securities BOND SALES: * People’s Bank of China to sell 1 billion yuan of 3-month bills GOVERNMENT: * Taiwan weekly Cabinet briefing, 9 a.m. * Regular Chinese foreign ministry press briefing, 3 p.m. * Taiwan Financial Supervisory Commission briefing, 5 p.m. CORPORATE EVENTS: * CLSA conference: “China 2011 macro outlook: China amid global slowdown,” 11:30 a.m. * Solargiga (757 HK) earnings press conference, 2:30 p.m. * Zhong An Real Estate (672 HK) earnings briefing, 2:30 p.m. * United Labs Intl (3933 HK) earnings media briefing, 2:30p.m. * Real Gold Mining (246 HK) earnings briefing, 4 p.m. BTV HIGHLIGHTS (All Hong Kong Times): * 7:10 Brian Barish, Cambiar Investors, president * 8:40 Aaron Fischer, CLSA, head of consumer & gaming * 9:10 Li-Gang Liu, ANZ Banking, head of Greater China economics * 10:10 Brian Jackson, RBC, head of emerging markets * 11:10 Fan Cheuk Wan, Credit Suisse Private Banking, head of AP research
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