Funds lead global performance rankings

    MUTUAL funds that invest in Chinese stocks currently dominate fund tracker Lipper’s list of the world’s strongest performers even though shares on the country’s stock market have plunged almost 30 percent since June.

    Their chartbuster performance has defied turbulent conditions in China, which led to a large number of firms suspending trading in their stocks and a crackdown by the Chinese Government on short-sellers who can profit from falling stock prices. The mutual funds’ resilience may make them more attractive to retail investors burnt by the sharp drop in Chinese shares. Mutual funds aim to reduce risks for investors by spreading bets across stocks and sectors.

    Technical preparations for stock connect done

    TECHNICAL preparations for connecting Hong Kong and Shenzhen stock trading are complete and the program can begin within four months of regulators giving it the green light, the chairman of Hong Kong’s stock exchange said Friday.

    The comment by Charles Li, chairman of Hong Kong Exchanges & Clearing Ltd., comes amid some concern in Hong Kong that the mainland’s recent market turmoil could delay the launch of a stock connect with the Shenzhen Stock Exchange, similar to an existing one with Shanghai rolled out in November.

    Dairy Farm to invest in Yonghui’s private placement

    DAIRY Farm International Holdings will subscribe to China’s supermarket operator Yonghui Superstores Co.’s private placement worth up to 6.5 billion yuan (US$1.05 billion).

    Dairy Farm, the Asian retail arm of Jardine Matheson, will invest about US$210 million in Yonghui’s private placement via its wholly-owned unit The Dairy Farm Co., the companies said Friday. JD.com Inc., China’s second-largest e-commerce site by sales, will acquire a 10 percent interest for about US$700 million.

    Bright Food hungry for deals in Europe

    SHANGHAI-BASED Bright Food Group Co. is looking to acquire more companies in Europe in the next three to five years as it seeks to increase its presence in food distribution.

    Food assets are much cheaper in Europe than in China and eurozone assets are very reasonable now, Ge Junjie, Bright Food’s deputy president, said Friday. Bright is looking at four target companies in Europe and is also in contact with companies in the United States and Southeast Asia for potential deals, he said.