Shanghai's Retreat on World's Fastest Train May Mean Last Stop for Maglev

(Bloomberg) -- Shanghai spent $1.25 billion building
the world's fastest train to the city's Pudong International
Airport. Cindy Huang would rather catch a bus.

The 50 yuan ($6.60) train fare is too costly for most
Shanghainese, says Huang, a human resources officer. The
magnetic-levitation, or maglev, line also terminates in Pudong's
suburbs, 12 kilometers from downtown, meaning most travelers must
get other transportation to reach their final destinations.


Read more at Bloomberg Emerging Markets News

China's Yuan Rises to Highest Since End of Link in 2005 as Growth Surges

(Bloomberg) -- The yuan rose to the highest since
the end of a dollar link in July 2005 after a report showed the
economy grew the most in 12 years, adding to speculation China
will seek a stronger currency to curb inflation.

Gains in the yuan may help reduce inflows from export
earnings and keep excess funds from flooding the economy with
cash, spurring lending and investment. Federal Reserve Chairman
Ben S. Bernanke yesterday said China needs a flexible exchange
rate to foster an ``independent monetary policy.''


Read more at Bloomberg Currencies News

China, India, Indonesia, South Korea, Sri Lanka: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The Agricultural Development Bank of China on July
17 sold 10 billion yuan ($1.32 billion) of five-year floating
rate notes. The interest rate was based on the current one-year
deposit rate of 3.06 percent plus an auctioned spread of 73
basis points. The bank will auction another 10 billion yuan of
one-year fixed rate notes next week. Major economic data in June,
including the consumer prices index, will be released today,
according to the Bureau of Statistics.


Read more at Bloomberg Bonds News

GF Securities and BOCI Profits Both Soar After China Stock Trading Swells

(Bloomberg) -- GF Securities Co., China's fifth-
largest brokerage by assets, and BOC International (China) Ltd.
posted soaring first-half profits, buoyed by rising stock market
trading.

Net income at GF Securities rose to 3.14 billion yuan ($415
million) from 267 million yuan a year earlier, according to
documents seen by Bloomberg News. BOC International, Bank of
China's brokerage arm, boosted profit to 571.2 million yuan from
218.8 million yuan.


Read more at Bloomberg Emerging Markets News

Xi'an Aircraft to Sell as Much as $872 Million of New Shares in Asset Swap

(Bloomberg) -- Xi'an Aircraft International Corp.
will raise as much as 6.6 billion yuan ($872 million) selling new
shares to its parent and other investors to help fund the
development of China's first commercial jet plane.

The company will sell 660 million yuan-denominated shares
for at least 9 yuan apiece, it said in a Shenzhen stock exchange
statement today. Its parent, Xi'an Aircraft Industry (Group) Co.,
will buy at least 55 percent of the shares at 9.18 yuan each with
airplane-making assets, the statement said.


Read more at Bloomberg Emerging Markets News

China's Yuan Has Biggest Weekly Advance Since 2005; Government Bonds Rise

(Bloomberg) -- The yuan had its biggest weekly
advance since the end of a dollar link in 2005 on speculation
pressure from the U.S. for quicker currency gains will increase
as the trade gap between the two nations widens.

China's trade surplus grew to a record in June, driving
foreign-exchange reserves to an all-time high, boosting excess
cash in the financial system and making it more difficult for
the government to cool economic growth. The U.S. trade deficit
with China widened in May, the Commerce Department said
yesterday.


Read more at Bloomberg Currencies News

China Money Supply Growth Accelerates, Raising Prospects for Rate Increase

(Bloomberg) -- China's money supply growth
accelerated for the first time in four months, increasing the
likelihood that interest rates will rise.

M2, the broadest measure, rose 17.1 percent in June from a
year earlier to 37.8 trillion yuan ($5 trillion) after gaining
16.7 percent in May, the People's Bank of China said today on its
Web site. It topped the government target for the fifth straight
month and was higher than the 16.6 percent median estimate of 18
economists surveyed by Bloomberg News.


Read more at Bloomberg Emerging Markets News

China Tightens Drug Approval Oversight, Sets Fines, Bans for Fake Products

(Bloomberg) -- China's food and drug regulator
strengthened penalties for making fake medicines and tightened
standards for approving new drugs, aiming to clean up an industry
saddled with corruption and fraud.

Companies that send in fake medicine samples for approvals
will be fined as much as 30,000 yuan ($3,967) and face a three-
year ban from drug tests, deputy head of the State Food and Drug
Administration's supervision department Wu Zhen said in a Webcast
today on the agency's Web site.


Read more at Bloomberg Emerging Markets News

Nanjing Bank, Ningbo Bank May Raise $1.46 Billion in China Share Sales

(Bloomberg) -- Bank of Nanjing Co. and Bank of
Ningbo Co. may raise a combined $1.46 billion in the first
initial public offerings by Chinese city lenders, seeking funds
to help fend off larger competitors.

Bank of Nanjing, part-owned by BNP Paribas SA, may raise as
much as 6.93 billion yuan ($914 million) selling 630 million
shares, a 34.3 percent stake, at 9.80 yuan to 11 yuan each, it
said today in a filing to the Shanghai exchange. Bank of Ningbo
will sell 450 million shares at 8 yuan to 9.20 yuan to trade in
Shenzhen, raising as much as 4.14 billion yuan, it said in a
separate filing to the city's bourse.


Read more at Bloomberg Emerging Markets News

Citigroup, Foreign Banks Triple China Profit Growth Through Yuan Services

(Bloomberg) -- Profit growth at Citigroup Inc., ABN
Amro Holding NV and other foreign banks in China tripled this
year after they were allowed to offer local-currency services, a
central bank report said.

Overseas banks earned a combined 3.05 billion yuan ($401
million) in the first five months, up 43 percent from a year
earlier, the People's Bank of China said in a research report
published by China Securities Journal. Profit growth accelerated
from an average 14 percent over the past five years.


Read more at Bloomberg Currencies News

Indonesia, Malaysia, Sri Lanka, Taiwan, Thailand: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: China's Agricultural Development Bank, one of the
nation's three policy banks, will sell 10 billion yuan ($1.32
billion) of floating-rate three-year notes on July 6. The debt
will carry an interest rate of the one-year deposit rate plus a
spread that is to be auctioned. The central bank last month
raised the benchmark one-year deposit rate to 3.06 percent from
0.27 percentage point.


Read more at Bloomberg Bonds News

Western Mining Seeks an $815 Million Initial Public Offering in Shanghai

(Bloomberg) -- China's Western Mining Co., a
producer of zinc, nickel and copper, is seeking as much as 6.2
billion yuan ($815 million) in a Shanghai initial public
offering to expand production and buy stakes in other mines.

The company will sell as many as 460 million new shares at
12 yuan to 13.48 yuan each, Xining, Qinghai-based Western Mining
said today in a filing to the Shanghai Stock Exchange. UBS AG,
Europe's biggest bank by assets, is arranging the sale, its
first in China.


Read more at Bloomberg Emerging Markets News

India, Indonesia, Malaysia, Sri Lanka, Thailand: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence Asian local-currency bonds today. Yields
are from the previous session.

China: Investments by Chinese insurers in stocks and debt
soared 53 percent in the first five months of 2007 from a year
earlier to 1.5 trillion yuan ($197 billion), according to a
statement published on the China Insurance Regulatory
Commission's Web site on June 27. The central bank yesterday
sold 1 billion yuan of three-year bills at a yield of 3.49
percent yield, the same as the previous auction a week earlier.


Read more at Bloomberg Bonds News

India, Philippines, Taiwan, Singapore, Thailand: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: State-owned Agricultural Development Bank will sell
10 billion yuan ($1.3 billion) of five-year bonds today. The
central bank yesterday sold 12 billion yuan of one-year bills at
a yield of 3.09 percent, the same yield as the previous five
weeks.


Read more at Bloomberg Bonds News

Anhui Conch May Raise $1.4 Billion in Shanghai Share Sale to Fund Growth

(Bloomberg) -- Anhui Conch Cement Co., China's
biggest maker of the construction material, plans to sell shares
valued at 11 billion yuan ($1.4 billion) in Shanghai to upgrade
power equipment and boost output.

The company will offer 200 million new shares, equal to an
11.3 percent stake after the sale, Conch said in a Shanghai stock
exchange statement today, without giving a price or timing. The
stock closed at 55 yuan yesterday.


Read more at Bloomberg Emerging Markets News

China's Airlines Made Profit in May as Econonic Growth Spurs Travel Demand

(Bloomberg) -- China Southern Airlines Co., the
nation's largest airline, and all other Chinese domestic
carriers posted a profit last month, as economic growth boosted
demand for traveling and air cargo transport.

Combined sales of Chinese carriers rose 11 percent to 21.1
billion yuan ($2.77 billion) in May from a year earlier,
exceeding costs of 19.9 billion yuan, the General Administration
of Civil Aviation said on its Web site last night.


Read more at Bloomberg Emerging Markets News

China Mobile eyes biggest ever Shanghai listing

(Reuters) - SHANGHAI/HONG KONG, June 18 - China Mobile
, the world's largest cellular phone operator, is
planning a multibillion-dollar share sale in Shanghai as early as
next month to attract domestic investors, sources familiar with
the situation said on Monday.




It will likely be the biggest initial public offer of equity
ever in China's domestic markets, exceeding Industrial &
Commercial Bank of China's 46.6 billion yuan
Shanghai IPO last year, the banking sources said.


Read more at Reuters.com Government Filings News

Shenzhen Development Bank Sells Bonds to Raise $2 Billion to Boost Capital

(Bloomberg) -- Shenzhen Development Bank Co.,
controlled by buyout firm TPG Inc., will raise as much as 16
billion yuan ($2.1 billion) selling debt to replenish capital
that has dropped below a government-mandated minimum.

The bank will sell 8 billion yuan of subordinated bonds with
maturity of between five and 15 years and another 8 billion yuan
of hybrid bonds with maturity of at least 15 years, the Shenzhen-
based bank said in a statement to the city's exchange on Saturday.
The debt will be sold within 18 months upon shareholder approval.


Read more at Bloomberg Emerging Markets News

Yuan Set for Biggest Weekly Advance Since End of Link to Dollar in 2005

(Bloomberg) -- The yuan was poised for its biggest
weekly advance since the end of its link to the U.S. dollar in
July 2005.

The yuan this week rose 0.36 percent to 7.6273 against the
dollar as of 9:42 a.m. in Shanghai. The currency, which is
allowed to rise or fall 0.5 percent either side of a daily
fixing rate, has gained 8.5 percent since China dropped the peg.


Read more at Bloomberg Currencies News

Yuan Rises to Highest Since End of Peg in 2005; Paulson Urges Flexibility

(Bloomberg) -- The yuan rose to the strongest since
2005 on speculation China will allow faster gains to help ease
trade tensions with the U.S., after Treasury Secretary Henry
Paulson urged increased currency flexibility.

Some U.S. senators plan to introduce legislation in Congress
today to push China to let the yuan rise quicker to reduce its
record trade surplus. Paulson suggested yesterday that China
isn't moving fast enough on the exchange rate, a day before a
Treasury report on whether countries manipulate their currency.


Read more at Bloomberg Currencies News