April, 2008

Pulling out more stops to boost A-share market

The Ministry of Finance yesterday said it will cut the stamp duty charged for sales and purchases of stock to 0.1% of transaction value, from 0.3%. Just last year, the stamp duty had been raised to 0.3% from 0.1%, to prevent excess speculation in shares.

Insurance companies could provide support for Chinese property market

The China Insurance Regulatory Commission said it hopes to receive permission from the State Council to let domestic insurers move more of their investment portfolios into property and infrastructure projects. Insurers have already been allowed to make selective investments in the infrastructure sector from early 2006.

Another move to shore up A-share market

Following up on a recent move to shore up the A-share market by limiting new share listings, the China Securities Regulatory Commission (CSRC) has taken another step to li

Beijing Airport: good investment?

Following on our positive review of the new Beijing airport’s Terminal 3, the Red Cat Journal this week takes a look at the stock, Beijing Capital International Airport Co. Limited (0694.HK). It has fallen from a high of HK$18 last year to around HK$6.20 per share now.

Reserve ratio has primary place in fight against inflation

The People’s Bank of China yesterday announced that it would raise the required reserve ratio for commercial banks in China to 16%, up another half a percent. This is the latest increase in a series of increases that has seen the ratio double from 8% in mid-2006. So far, China’s implementation of a “tight” monetary policy has not been focused on interest rate hikes.

Red Chip listings on A-share market halted for now

New Red Chip listings on China’s A-share market have been halted for now by the State Council.

Beijing attracts Aman Resorts

The South China Morning Post reports that the Summer Palace, a favorite relaxation spot of the Qing Dynasty (1644-1912) emperors, is to be the location for a new six-star resort. Aman Resorts, famous for its exclusivity and impeccable service, is set to convert several traditional buildings in the grounds of the Summer Palace into one of its luxury hotels.

Easier access to A-share market for foreign investors

A representative of China’s State Administration of Foreign Exchange (SAFE) indicated yesterday, at a forum, that SAFE would loosen rules governing the Qualified Foreign Institutional Investor (QFII) program allowing foreign institutions to buy domestic A-shares.

No signs of monetary policy loosening for foreign banks

The South China Morning Post reports that China has cut medium-term and long-term debt quotas used to fund real estate and energy intensive products for foreign banks operating in China. With regards to short-term lending, quotas were also cut for trade financing and working capital. The new quotas are valid until March 31 of 2009.

Mainland Chinese banks allowed to create U.S. investment products

The China Banking Regulatory Commission (CBRC) announced yesterday that it had reached an agreement with the U.S. Securities and Exchange Commission to expand its Qualified Domestic Institutional Investor (QDII) program to cover the U.S. The program allows mainland Chinese banks to create investment products for its customers that can invest in U.S. shares.