Citibank completes cross-border lending deal in yuan

Citibank (China) Co Ltd said on Thursday it had completed its first cross-border lending transaction in yuan. The bank said the transaction was conducted on behalf of a European food company, and was structured to optimize the company's treasury activities by leveraging its China operation's surplus cash. The lender declined to provide financial details. Lending to the company's group treasury center in Singapore is a critical step to expand and include yuan in its treasury management currency basket, it said.

SMG, Raine join hands to build entertainment group

Shanghai Media Group has lined up a powerful financial partner to support its bid to build an international entertainment empire. In a statement released on Thursday, China Media Capital, a private equity fund focusing on culture, which is partly owned by SMG, said it has formed a strategic partnership with The Raine Group. "We and Raine share the same vision - to build Chinese media and entertainment companies into world-class institutions," said Li Ruigang, chairman of China Media Capital, who was also the president of SMG from 2002 to 2011.

China's mobile phone users exceed 1.1 billion in 2012

There was a 9.4 percent increase in telecom users in China last year, as the number of accounts rose to 1.39 billion, according to a report from the Ministry of Industry and Information Technology. Mobile phone users exceeded 1.1 billion, with 3G users accounting for 20 percent of those. Broadband users with speeds of 4 Mbps or above made up 63 percent of the total. More than 10,000 villages were added to the country's national telephone coverage, and 19,000 more villages given broadband services.

Fiscal deficit may hit new high of $193 billion: Report

China's fiscal budget deficit is expected to rise to a record-high of 1.2 trillion yuan ($193 billion) during the new fiscal year, to shore up the slowing economy, the largest on record and up from last year's budget deficit of 800 billion yuan and the real deficit of 1.07 trillion yuan, according to a report released on Wednesday by the Bank of Communications. The deficit will be increased due to spending on infrastructure projects and making room for tax cuts, which will both significantly support economic growth, the report noted.

Minmetals Development warns of huge losses

Minmetals Development, the listed unit of China's leading metals producer, has forecast a 165-percent slump in earnings for 2012. In a report filed with the Shanghai Stock Exchange on Wednesday, officials warned of a 350 million yuan ($55.56 million) loss for the year, which they blamed on the sluggish global economy, slowing Chinese economy, shrinking steel sector, deteriorating market environment and increasing management difficulties. In 2011, Minmetals Development recorded net profits of 538 million yuan.

Local harvests give China record cotton reserves

China, the world's biggest cotton grower and consumer, has amassed record reserves by buying local harvests over the past two years to protect farmers and not to control global markets, a State-run trade group said. The stockpiling was originally drafted as a temporary backup plan when supply exceeds demand, the China Cotton Association said. The country has bought local cotton since 2011 to ease a plunge in prices and boost farmers' profits.

Subsidies for PV sector to be revealed in March

China will publish its subsidies plan for the photovoltaic power generation sector after the 2013 National People's Congress, and the Chinese People's Political Consultative Conference in early March, the National Business Daily has reported, quoting a source at the Energy Research Institute of the National Development and Reform Commission. The highlight of the proposals, which have been submitted to the State Council, is differentiated subsidies in several regions, the report said.

China issuers dominate in sales of dollar debt

Cosco Pacific Ltd, Future Land Development Holdings Ltd and Mingfa Group International Co are marketing dollar-denominated debt as Chinese firms dominate regional issuance in the US currency. Cosco Pacific, the Hong Kong-listed container terminal operator, is offering 10-year notes to yield about 285 basis points more than Treasuries, according to a person familiar with the matter. Future Land, the Shanghai-based developer, plans to sell five-year notes, as does, a real estate firm Mingfa, a separate person said.

China Daily - Agencies

(China Daily 01/25/2013 page14)