Airbus eyes orders during Merkel visit

AIRBUS hopes to win orders to sell up to 100 A320 planes to China when German Chancellor Angela Merkel visits the country this week, industry sources said late Monday.

The order, potentially worth around US$9 billion, would be the first significant Airbus deal with China since a row between China and the European Union over emissions trading interrupted earlier deals worth up to US$14 billion. However, such an order would not by itself signal an end to the dispute.

Southern Air profit down 85 percent

CHINA Southern Airlines Ltd. has posted an 85 percent drop in first-half profit as the global economy slowed, jet fuel prices rose and competition among Chinese carriers intensified.

The airline, China’s biggest by passenger numbers, said late Monday that profit fell to 424 million yuan (US$67 million), or 0.04 yuan per share. That’s down steeply from 2.76 billion yuan or 0.28 yuan a share in 2011. Southern Air said it expects tough conditions to persist for the second half of 2012, with the global economic recovery facing “various uncertainties” and continued intense competition.

Sun Art net jumps 75%, eyes expansion

SUN Art Retail Group Ltd., China’s largest hypermarket chain, posted a 75 percent jump in first-half net profit yesterday, helped by effective cost controls and an expanded sales network, highlighting its resilience to an economic slowdown that has sapped consumer demand and bloated inventories.

Sun Art, a joint venture between Taiwan conglomerate Ruentex Group and privately held French retailer Groupe Auchan SA, said first-half net profit was 1.37 billion yuan, up from 784 million yuan a year earlier.

Ernst & Young taken to court in HK

HONG KONG’S securities regulator took Ernst & Young to court after the audit giant failed to turn over accounting records related to a mainland-based company.

The case is the first of its kind in Hong Kong. In this case, the Hong Kong Securities and Futures Commission (SFC) wants Ernst & Young Hong Kong to hand over its records from its audit work for water provider Standard Water Ltd. The SFC said the audit firm has claimed it does not have the relevant records.