Forex reserves post first rise in 6 months

    CHINA’S foreign exchange reserves rose in October for the first time in six months as the stock market rebounded and the currency strengthened.

    The stockpile rose to US$3.53 trillion from US$3.51 trillion at the end of September, according to People’s Bank of China data released Saturday. That compared with a drop of US$43.3 billion in September and a record US$93.9 billion slide in August. The rebound after August’s plunge indicates that capital outflow pressures are easing amid a rebound in China’s stocks and currency.

    Brokerages close ‘grey margin’ accounts

    DOMESTIC brokerages have almost finished investigating and closing suspected “grey margin” accounts, a spokesperson for the Chinese Securities Regulatory Commission said at a regular press conference Friday.

    Illegal margin loans from grey margin lenders was a major factor amplifying leverage and volatility in China’s stock market this summer. After a spectacular rise in late 2014 and the first half of 2015, China’s major stock indices lost around 40 percent of their value between late June and late August.

    Curbs slapped on securities, futures institutions

    CHINA’S stock market regulator said Friday it would restrict operations of seven securities and futures institutions.

    Deng Ge, the spokesman for the China Securities Regulatory Commission (CSRC), said that it decided to suspend seven institutions from opening new accounts for investors for a month, including China Galaxy Securities and Shenwan Hongyuan Securities Group. Four other fund-related companies were ordered to stop their asset management businesses for certain investors for as much as six months.

    Yangtze Power to buy Sichuan hydro power firm

    CHINA Yangtze Power Co., the country’s biggest hydro power operator, plans to buy a Sichuan hydro power firm for 79.7 billion yuan (US$12.55 billion).

    Yangtze Power will buy a 100 percent of the company with 37.4 billion yuan in cash and 42.3 billion yuan in shares. Part of the 37.4 billion yuan cash payment will come from a private placement of shares worth up to 24.2 billion yuan to seven investors, including China Life Insurance, Guangdong Development and Singapore’s sovereign wealth fund GIC.