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