Shares face pressure with 22 new offerings

    CHINESE shares are likely to face downward pressure this week as investors are expected to hold more cash for 22 new share offerings.

    It will be the eighth round, and the largest wave of new share offerings, since last June, when the China Securities Regulatory Commission restarted the initial public offering (IPO) market. For the next five trading days, Wednesday alone will see 10 new offerings, Thursday to have another six offerings, while each of the other three trading days will have two new offerings.

    Bright Food aims for Manassen IPO this year

    CHINESE food giant Bright Food Group is aiming to list Australian unit Manassen Foods overseas this year, a Bright spokesman said Friday, helping raise funds for a firm which has been on a global acquisition spree over the past few years.

    Bright is targeting having around half of its assets securitized by 2018, compared with around 20 percent currently, spokesman Pan Jianjun said. The Shanghai-based firm’s global march reflects the growing buying power of Chinese companies around the world, with assets stretching from Europe to Israel and Australia.

    Fonterra investment in Beingmate approved

    CHINA’S Ministry of Commerce has approved global dairy cooperative Fonterra’s bid to buy a 20 percent stake in Beingmate, the Chinese dairy giant said Friday.

    The Shenzhen-listed company said in a statement that the strategic investment by Fonterra had been given the green light Thursday. The approval will take six months to be put into effect, it said. Last September, Beingmate said that New Zealand-based Fonterra would buy a 20 percent stake for 3.68 billion yuan (US$593 million) in the Chinese firm to become a major shareholder.

    Draft rules issued for launch of bond futures

    THE China Financial Futures Exchange (CFFEX) has issued draft rules for the launch of 10-year government bond futures, a move seen as another step toward interest rate liberalization.

    The futures will be based on long-term government bonds with durations of 6.5 to 10.25 years to their maturity, the CFFEX said in the draft rules published last week. The futures will have a face value of 1 million yuan (US$161,000) apiece, bearing a nominal interest rate of 3 percent.