Banking News
- Bank loans for stock speculation targeted
Date: 6-Nov-2007 Sources: (Shenzhen Daily)
THE country's banking regulator is drafting new regulations on plugging the loopholes through which bank loans are misappropriated for stock market speculation, the Economic Observer reported yesterday.
The newspaper said the China Banking Regulatory Commission has formed a special panel, which includes commercial banks' representatives, to work on the draft. The new regulation will cover supervision of the whole course of commercial banks' loan issuing process, focusing on oversight of the movement of the loans upon their issue by the banks, according to the newspaper. The report said the move has been prompted by the fact that loans from commercial banks are being used for speculation in the domestic stock markets.
Hunan Nonferrous to issue A shares
HUNAN Nonferrous Metals Corp. said it planned to issue up to 1 billion A shares on a mainland stock exchange, raising capital to fund acquisitions of a nonferrous metals mine and related assets from its parent.
The firm, China's top producer of zinc, said in a statement yesterday that the A shares would be listed either in Shanghai or Shenzhen, and the terms of the share sale had yet to be determined. The deal could be worth up to HK$7.92 billion (US$1.02 billion) based on the closing price of the company's H shares of HK$7.92 Friday. Hunan Nonferrous said the proposal was subject to shareholders' approval and proceeds would also be used to fund potential strategic acquisitions in or outside China.
Panzhihua Steel plans group listing
PANZHIHUA Iron and Steel Group, the country's 15th-largest steel mill by output, plans to list on the stock market in a deal worth more than US$1 billion, its flagship unit said yesterday.
Shenzhen-listed PZH Steel will merge with two other units of the group, Chongqing Titanium and Sichuan Changcheng Special Steel and buy core assets worth up to 7.5 billion yuan (US$1.01 billion) from the group, PZH said in a statement. The purchases of shares and assets would be paid for through a private placement of new PZH shares to Panzhihua Group and affiliates. The deal would essentially leave PZH Steel as the listed arm of the entire group.
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