Banks told to lend to infrastructure projects

REGULATORS have told commercial banks to lend more to projects to build railways, highways and other infrastructure to bolster economic growth, China Securities Journal reported Thursday.

“Regulators recently required commercial banks to make timely adjustments in credit policy and use limited credit resources to step up support for the real economy, especially key projects in railways and highways,” the paper quoted unnamed banking sources as saying. Banks have also been told to lend more to agricultural infrastructure and affordable housing projects, but they must control lending risks and ensure such projects are commercially viable, the paper added.

‘China may open capital account by 2015’

CHINA may open its capital account by 2015, Dai Xianglong, chairman of the National Council for Social Security Fund and former central bank governor, said Wednesday.

Speaking on a panel at the World Economic Forum in the northern port city of Tianjin, Dai said conditions could be met for China to liberalize its capital account in three to five years. “We’re not that far away from capital-account opening,” he said. For example, the Chinese already buy houses in other countries with foreign currency, he said.

General Motors’ China president to retire

KEVIN WALE will retire Oct. 31 as president of General Motors China, GM said Wednesday. His replacement is Bob Socia, GM’s vice president of global purchasing and supply chain.

Wale, a 37-year GM veteran, has headed the U.S. automaker’s China operations since 2005. During Wale’s tenure, China overtook the United States as GM’s and the world’s biggest auto market.

Ashmore grabs Aviva stake in venture

ASHMORE Investment Management, the US$64 billion emerging markets fund manager, has bought rival Aviva’s 49 percent stake in a prospective joint venture with a Chinese investment firm, securing a coveted toehold in a market set for rapid growth.

Ashmore on Thursday confirmed the deal, with China Central Securities, a securities-trading house based in Henan Province. Ashmore already has exposure to China through a minority stake in a Hong Kong-listed real estate firm, Everbright Ashmore. This company is 51 percent controlled by China Everbright, but does not have a license to sell mutual funds to retail investors.