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Monday July 10, 2017

Stock Indices (Friday)

Shanghai Composite Index

Shanghai B

Shenzhen Component Index

Shenzhen B

Last 330.74 Open 329.76 High 330.91 Low 329.07 Change 0.15%

Last 10,563.72 Open 10,526.78 High 10,564.31 Low 10,504.10 Change 0.02%

Last 1,156.63 Open 1,154.26 High 1,156.63 Low 1,151.82 Change 0.20%

Last 3,217.96 Open 3,203.82 High 3,219.52 Low 3,195.29 Change 0.17%

Chinese RMB

100 Hong Kong dollars 86.95100 U.S. dollars 679.14 100 Japanese yen 6.0015 100 Euros 775.71 100 British pounds 880.85100 Swiss francs 707.09 100 Canadian dollars 523.27 100 Australian dollars 514.74 100 Singapore dollars 491.27

Hong Kong dollar 7.8115 Japanese yen 113.87 Euro 0.8773 British pound 0.7759 Swiss franc 0.9646Canadian dollar 1.2877 Australian dollar 1.3154 Singapore dollar 1.3814

U.S. dollar

Exchange Rates (Friday)

CHINA’S foreign exchange reserves edged up in June for a fi fth consecutive month, in line with market expectations, as capital outfl ows eased in the face of tighter regulations and the U.S. dollar’s rally paused.

Reserves rose US$3.2 billion during June to US$3.057 trillion, in line with economists’ forecast. The reserves rose by US$24 bil-lion in May to US$3.054 trillion.

It was the fi rst time that reserves had climbed for fi ve months in a row since June 2014 and marked its highest level in eight months.

“China’s foreign exchange reserves suggest that outfl ow pressures may have eased last month,” wrote Julian Evans-Pritchard, China economist at Capital Economics, adding that June could mark the fi rst month since October 2015 in which the central bank was a net buyer of foreign exchange.

He estimated that China’s capital outfl ows dropped to roughly US$10 billion in June from US$29 billion in May.

China’s foreign exchange regu-lator said that the slight increase in reserves in June was driven by stronger non-dollar currencies against the greenback.

China’s foreign reserves will remain stable as cross-border capital fl ows become more

balanced, the State Adminis-tration of Foreign Exchange said in a statement.

China burned through nearly US$320 billion in reserves last year but the yuan still fell about 6.5 percent against the dollar, its biggest annual drop since 1994.

Faced with an entrenched bearish yuan view, China moved swiftly over the past few months to fl ush out specu-lators, quash expectations of a further steep depreciation and safeguard its reserves.

That strategy to head off risks to the economy from capital out-fl ows seems to have worked so far, with the yuan up about 2 percent against the dollar this year.

In May, net foreign exchange sales by the People’s Bank of China fell to the lowest in nearly two years as the yuan stabilized.

China also recorded a sur-plus in its capital and fi nancial account in the fi rst quarter, data from the foreign exchange regulator showed, indicating net capital infl ows as policy-makers tightened supervision of outfl ows.

However, French investment bank Natixis said in a report that its capital fl ow tracker for China showed outfl ows for the second quarter will rise to US$144.1 bil-lion, reversing the trend in the fi rst quarter. (SD-Agencies)

Forex reserves rise to 8-month high

COSCO Shipping Holdings expects to post a profi t of around 1.85 billion yuan (US$272 mil-lion) for the fi rst half of 2017, helped by an improving ship-ping market.

COSCO Shipping, the world’s fourth-largest container ship-ping line, made the forecast in a statement Friday. It recorded a loss of 7.2 billion yuan in the same period last year.

“Freight rates for container shipping operations have increased year on year, con-tainer volumes have grown

34.72 percent, and earnings have continued to grow from the base set in the fourth quarter of last year,” it said.

Several of the company’s peers have said in recent months that the global ship-ping industry is emerging from a prolonged slump. In May, French container shipping line CMA CGM posted its second straight quarterly profi t.

Shanghai-listed COSCO Ship-ping has suspended trading in its shares since May 16, citing “material asset restructuring.”

Cosco Group has agreed in principle to buy smaller ship-ping rival Orient Overseas Container Line Co. in deal that could be valued at around US$6 billion, The Wall Street Journal reported Saturday.

The long-waited deal, if it materializes, will mark yet another major acquisition move in an industry where economies of scale appears to have become increasingly crucial for each carrier’s survival with an esca-lating level of consolidation.

(SD-Agencies)

A COSCO container is unloaded from a train in Hamburg, northern Germany, in this fi le photo. COSCO Shipping Holdings said Friday it expects to post a profi t of around 1.85 billion yuan (US$272 million) for the fi rst half of 2017. Xinhua

COSCO fl ags profi t on improving market

SHENZHEN-BASED gaming giant Tencent Holdings Ltd. will launch its mega-hit smartphone game “Honor of Kings” in the European Union and United States this year, a person familiar with the plans said, amid a backlash in China over its addictive features.

The game has roughly 55 million daily active users and analysts estimate its monthly rev-enue is more than 1 billion yuan (US$147.09 million), making it the fi rm’s top-grossing game.

It comes as Tencent announced last week it would slash the number of hours underage users can access the app, amid a wider

campaign by the government to stamp out gaming behavior that it deems “harmful to the psychol-ogy of minors.”

The new bans restrict players under 12 to one hour of game play a day and limits users under 18 years to two hours.

The People’s Daily called the game “poison,” alluding to a Chinese gaming term used to describe addictive games and called for the industry to be further regulated.

The multiplayer role playing game is free, but allows users to purchase items to advance more quickly in the game.

The game’s launch in the

Europe Union and the United States marks its fi rst attempt to bring the massively popular homegrown franchise to West-ern markets.

Tencent has previously acquired top-grossing foreign titles, including an US$8.6 bil-lion majority stake in “Clash of Clans” maker Supercell, but it is yet to export self-produced games of the same size to West-ern markets.

A Tencent spokeswoman said it currently had no timeline for the game’s expansion.

The game is already available in markets in Asia including Turkey and Thailand. (SD-Agencies)

Tencent to launch mega-hit game in US, EU

SHENZHEN-BASED real estate developer China Vanke Co. said Friday it has won bidding for cer-tain assets of Guangdong Inter-national Trust Investment Corp. for 55.1 billion yuan (US$8.1 bil-lion), a deal could boost its land reserve and enhance its market position in Guangzhou.

After the deal, China Vanke, China’s second-largest property developer, will acquire the equity interests of Guangdong Trust Real Estate and Guangzhou Real Estate Branch, whose principal assets are properties in Guangzhou. Those properties will be developed into residen-tial and commercial proper-

ties, hotels and offi ces with an expected total gross fl oor area of 2.11 million square meters.

China Vanke said it is in talks with a potential partner to jointly develop the properties.

China Vanke also said units of China Evergrande Group have completed the share transfer of 1.55 billion Shenzhen-listed shares of China Vanke to Shenzhen Metro Group Co.

Shenzhen Metro now holds 29.38 percent in China Vanke and is the largest shareholder of the developer, ending a bitter struggle for boardroom control by surpassing finan-cial conglomerate Baoneng

Group that had sought to oust Vanke’s management.

Vanke’s founder Wang Shi, 66, announced last month he would step down from the board as chairman.

Vanke said in a statement on the Shenzhen Stock Exchange on June 30 that the company board had elected president Yu Liang, a 28-year Vanke veteran, as chair-man and CEO, while Wang will become emeritus chairman.

Shenzhen Metro said it would not interfere in Vanke’s opera-tions, allaying concerns Vanke would become less market driven under the control of State-run Shenzhen Metro. (SD-Agencies)

Vanke wins bidding for Guangzhou properties assets