Shares jump to 5-1/2-year high

    CHINA’S shares closed at their highest in five and a half years yesterday, fuelled by expectations of further government stimulus after Premier Li Keqiang said the government had plenty of scope to adjust policies in order to boost the world’s second-largest economy.

    The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.43 percent, to 3,705.67, while the Shanghai Composite Index gained 2.26 percent, to 3,449.30 points. Both indices reached their highest level since August 2009. The Shenzhen Composite Index closed up 3.05 percent at 1,760.19.

    Big Lenovo shareholder plans HK listing

    THE Chinese conglomerate that is the largest shareholder of personal computer maker Lenovo Group Ltd. is planning to launch an initial public offering (IPO) in Hong Kong that could raise up to US$3 billion in July, people with direct knowledge of the deal said yesterday, in what is set to be one of Asia’s biggest listings this year.

    Beijing-based Legend Holdings Corp., one of the country’s oldest State-linked conglomerates, is planning to submit an application seeking listing approval to Hong Kong’s stock exchange in coming weeks, the sources said. The conglomerate holds a 30.6 percent stake in Hong Kong-listed Lenovo.

    Fonterra buys stake in Beingmate

    NEW ZEALAND’S Fonterra Co-operative Group Ltd. yesterday said it has completed a partial tender offer for Beingmate Baby & Child Food Co. and has acquired an 18.8 percent stake in the Shenzhen-listed infant formula manufacturer.

    Fonterra said it will buy 192.4 million Beingmate shares at 18 yuan (US$2.87) per share. The total cost, excluding transaction fees, will be 3.46 billion yuan, it said. Last August, Fonterra and Beingmate announced they intended to form a global partnership to help meet China’s growing demand for infant formula.

    Fuyao Glass plans HK stock offering

    MAINLAND automotive glass maker Fuyao Glass Industry Group plans to raise up to US$950 million in a Hong Kong stock offering, the IFR reported yesterday, citing people familiar with the plans.

    The Shanghai-listed company plans to offer about 439 million new shares in an indicative range of HK$14.80 to HK$16.80 each, putting the total deal at up to HK$7.38 billion (US$950.48 million), the IFR said. Fuyao Glass’ customers include General Motors Co. and Volkswagen’s luxury car brand Audi.