BOC yuan clearing bank in South Africa

    THE People’s Bank of China said yesterday that it has decided to appoint Bank of China Ltd. (BOC), the nation’s fourth-largest lender by assets, as a yuan clearing bank in South Africa.

    The move came after central banks from the two countries signed a memorandum to set up yuan clearing in South Africa. Opening a clearing bank is a crucial step in developing an offshore yuan-based business as the bank can supply yuan liquidity in case of a shortage by accessing China’s domestic currency market.

    Sinopec expects substantially higher net profit

    CHINA Petroleum & Chemical Corp. said yesterday its net profit for the second quarter is expected to be substantially higher than the previous quarter.

    The Hong Kong and Shanghai-listed oil giant, also known as Sinopec, projected a more than 1,000 percent increase in its net profit in the second quarter from the first quarter, without giving further details in a filing to the Shanghai Stock Exchange.

    Alibaba boosts stake in Singapore Post

    CHINA’S e-commerce giant Alibaba Group Holding Ltd. is investing about S$279 million (US$205.98 million) to expand its holdings in Singapore Post Ltd. (SingPost) and its e-commerce subsidiary, the two companies said in a statement yesterday.

    SingPost is seeking to boost its e-commerce business to offset weak postal revenues and last year an Alibaba unit bought an over 10 percent stake in SingPost for S$249 million. In the latest deal, Alibaba said it was buying an additional 5 percent stake in SingPost for S$187.1 million. Alibaba will also invest up to S$92 million to buy a 34 percent stake in Quantium Solutions International, a SingPost subsidiary that provides e-commerce logistics across the Asia Pacific.

    Haixia Capital sells Haitong Securities stake

    A SHAREHOLDER of Haitong Securities Co. raised US$817 million by selling its entire stake in the Shanghai-listed brokerage at a sharp discount, a source with direct knowledge of the deal said yesterday.

    State-owned investment fund Haixia Capital Management Co. sold 569.4 million Haitong Securities shares at HK$11.12 (US$1.43) each. The price represents a 20 percent discount to the brokerage’s closing price Tuesday, the source said. The share sale comes at a time when Chinese shares are plunging, even as the government introduces new measures to arrest a selloff that started in June.