China Finance & Currency Week

SINGAPORE TO OFFER CHINA FUTURES DESPITE LAWSUIT, FINES
The producers of a futures contract based on an index of China’s top 50 stocks will continue selling the product on the Singapore Exchange despite losing a lawsuit Tuesday and receiving US$20,000 in fines.
China Finance & Currency Week (November 2006) Paid subscription required

CHINESE PENSION FUND PICKS FOREIGN FIRMS AS MANAGERS
China’s National Social Security Fund (NSSF) has selected foreign firms to manage its US$1 billon pension fund assets in overseas markets, according to a source close to the deal.
China Finance & Currency Week (November 2006) Paid subscription required
 
CHINA’S REMOVAL OF CORRUPT OFFICIALS PAVES NEW BIZ ROUTE
In the first eight months of 2006, more than 17,000 Chinese officials were prosecuted and punished for corruption relating to banking funds and other government controlled financing, according to the Supreme People's Procuratorate. But the corruption probe that is making the biggest waves is that of the pension fund scandal that recently brought down Shanghai’s Communist Party chief, Chen Liangyu, and a number of associated figures.
China Finance & Currency Week (November 2006) Paid subscription required

CHINA TO SECURITIZE BAD BANK DEBTS
China will begin securitizing its bad bank debts, a manager at one of China’s two top asset management companies told China Finance & Currency week on Friday.
China Finance & Currency Week (October 2006) Paid subscription required

NEW FUTURES EXCHANGE RULES TO KEEP OUT SMALL INVESTORS
The China Financial Futures Exchange (CFFEX) issued draft rules last Monday designed to keep small investors from trading in its risky derivatives contracts that will be sold on the exchange in early 2007.
China Finance & Currency Week (October 2006) Paid subscription required

UNIFIED TAX LAW TO BOOST RATES FOR FOREIGN FIRMS
Foreign firms could see their corporate taxes almost double over the next five years under a proposed Chinese law to unify China’s tax codes so foreign and domestic companies pay the same rates. The Chinese government said it is changing the tax rules now because it wants to fund a variety of initiatives, including new infrastructure. It also wants to develop high-tech industries and implement environmental protection measures, government officials said.
China Finance & Currency Week (October 2006) Paid subscription required

INVESTORS FLOCK TO ICBC IPO DESPITE DOUBTS ABOUT QUALITY
As thousands in Hong Kong deluged bank branches to apply for Industrial and Commercial Bank of China’s (ICBC) shares during its initial public offering to retail customers in Hong Kong last Monday, experts remain cautious about whether investing in ICBC is a sound strategy.
China Finance & Currency Week (October 2006) Paid subscription required

CHINA’S REGULATORY WALLS IN FINANCIAL SERVICES TO REMAIN
China has no plans to remove the regulatory walls that separate banking, brokerage and insurance services, said Huang Yi, director-general of the China Banking and Regulatory Commission. "Lots of people say we should change the law," Yi said, and China did revisit the law in 2003. "But after discussions we won't change this article."
China Finance & Currency Week (October 2006) Paid subscription required

RISK MANAGEMENT: KEY ISSUE FACED BY CHINESE BANKS
Strong foreign competition is likely to force Chinese banks to manage risks better in the future, said Roger Ferguson, former vice chairman of the U.S. Federal Reserve and one of the keynote speakers at the China International Banking Convention held last Thursday and Friday in Beijing.
China Finance & Currency Week (October 2006) Paid subscription required

China Raises New Barriers To Foreigners As Old Ones Fall
Last week, the Chinese government announced that it will issue new rules in opening up its banking sector next month – a full month earlier than the World Trade Organization deadline. In spite of that milestone, other obstacles to foreign investment are already on the rise. They include restrictions on brokerage joint ventures, real estate investments, and high capital requirements for foreign banks coming into China.
China Finance & Currency Week (October 2006) Paid subscription required

Edgar Online To Offer Company Data To Investors In China
Edgar Online Inc. plans to offer online tools to institutional investors in China – to further facilitate the country’s drive to modernize its financial information system – and to provide investors and analysts with easier access to corporate data, executives from Edgar Online told China Finance & Currency Week last Thursday. In addition, the company hopes to offer some free online tools to retail investors through the websites of local stock exchanges.
China Finance & Currency Week (October 2006) Paid subscription required

Chinese Regulators Up Credit Suisse Quota
Chinese regulators last week decided to allow Credit Suisse to invest an additional US$200 million in mainland stocks, bringing its total quota to US$500 million.
China Finance & Currency Week (October 2006) Paid subscription required

ICBC IPO Underwriting Process: Guanxi Connections?
The lead investment banks on the Industrial and Commercial Bank of China’s (ICBC) upcoming $19 billion initial public offering –the largest in history– declined to disclose the process of selection for the key players on the deal, but market players would not rule out Guanxi connections.
China Finance & Currency Week (October 2006) Paid subscription required

Share Reforms Compel Short-term Lull, Long-term Value
With share reforms hot on the agenda, industry participants in the Chinese capital markets expect short-term pressure on stocks, but a strong rebound over the long-term.
China Finance & Currency Week (October 2006) Paid subscription required