Bullish media commentary boosts shares

    CHINA’S stocks climbed to fresh seven-year highs yesterday, with investors emboldened by a commentary in domestic media saying the bull market “has just begun” and that there was no bubble.

    The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.6 percent to 4,739.81 points, while the Shanghai Composite Index gained 2.5 percent to 4,398.49 points. The current bull run “has support from China’s grand development strategy and economic reforms” and blue chip stocks are still “undervalued,” said an article published on a website run by the People’s Daily newspaper.

    COFCO mulls IPO as part of expansion plans

    COFCO Corp., China’s largest State-run grain trading company, will consider an initial public offering (IPO) as part of its ambitions to grow internationally, chairman Ning Gaoning said yesterday.

    The company has expanded rapidly in recent years, snapping up assets as well as Dutch grain trader Nidera BV and a substantial stake in Noble Group’s agriculture unit. The acquisition spree is part of a push to expand into a global agricultural trading company. “An IPO will help us achieve this standing,” Ning said, without giving a time frame for a potential listing.

    Sinopec Group sells US$6.4 billion in bonds

    THE parent of China’s largest oil refiner raised US$6.4 billion in a bond sale that ranked as Asia’s third-biggest on record, with some of the lowest borrowing costs ever for an Asian company thanks to Europe.

    The offering by Sinopec Group is exceeded only by Alibaba Group Holding Ltd.’s US$8 billion debt sale in November and Bank of China Ltd.’s US$6.5 billion offering that beefed up its capital in October, according to data provider Dealogic. By tapping European investors, Sinopec Group was able to borrow at costs as low as 0.5 percent and 1 percent for its three and seven-year bonds, totaling 1.5 billion euros (US$1.6 billion).

    Bank of China plans U.S. expansion

    BANK of China Ltd., the country’s fourth-biggest lender, plans to set up more U.S. branches and sell asset-backed securities this year as cross-border investment between the two countries increase.

    The bank, which has branches in New York, Los Angeles and Chicago, is considering locations in cities including Washington D.C. and San Francisco, said Xu Chen, the bank’s U.S. president and chief executive officer, in New York yesterday.