Regulator seeks to encourage mergers, acquisitions

    CHINA’S securities regulator said Friday it was seeking to encourage and speed up mergers and acquisitions through a series of measures implemented recently.

    The measures are aimed at “letting the capital market better support economic restructuring,” the China Securities Regulatory Commission (CSRC) said. Recently, the CSRC has allowed companies to raise more money to fund acquisitions, sped up review process of certain deals and reduced tax burdens for companies that undergo restructurings.

    Latest municipal bond auction fully subscribed

    A MUNICIPAL bond auction by the Qingdao city government in northern China was fully subscribed Friday, traders said, following Aug. 7’s undersubscribed auction by Liaoning Province.

    The Liaoning auction was the first to publicly fail to achieve full subscription in 2015. Municipal bond yields, which have traded in a tight range with Chinese treasuries for most of the year, began rising in late May as new issuance in 2015 has passed 1 trillion yuan (US$156.30 billion). Investors have been watching closely to see if the Liaoning result would be repeated or was a fluke.

    Iron ore futures cling to five-week high

    CHINESE iron ore futures hovered near five-week highs Friday and posted their third straight weekly gain amid increased restocking by steel mills in the world’s top consumer.

    Chinese steel mills have stepped up purchases of the steelmaking ingredient after running down inventories as they lift output ahead of planned production curbs in late August. The most traded January iron ore contract on the Dalian Commodity Exchange closed nearly flat at 385 yuan (US$60) a ton Friday, not far from Thursday’s peak of 388.50 yuan, the highest since July 6. It gained almost 4 percent last week.

    Jangho makes knockout bid for Australian health firm

    SHANGHAI-LISTED curtainmaker Jangho Group Co. plans to buy Australian eye surgery group Vision Eye Institute Ltd. for A$198 million (US$145.5 million), trumping a lower offer from another Australian firm, Pulse Health Ltd.

    Jangho said Friday it plans to buy Vision for A$1.10 a share, a 20 percent premium to its last closing price, and that Vision’s board plans to accept the all-cash, off-market offer. Jangho said it also plans to use its investment to bring Australian health care skills to China.