Feasibility study underway on London link

    A FEASIBILITY study on a Shanghai-London stock connect is underway, a spokesman for the China Securities Regulatory Commission said at a regular press conference Friday.

    The possibility of a link between the two markets has been under discussion for some time, but momentum appeared to slow in the wake of this summer’s 40 percent crash in China’s major onshore markets. Hong Kong markets, the first to be linked with Shanghai’s, were also battered in the mainland equity crash this summer.

    Shanghai to sell bonds backed by home loans

    SHANGHAI plans to sell 6.96 billion yuan (US$1.09 billion) in bonds backed by local government-managed funds that provide mortgages as China seeks to boost home sales and clear a nationwide property oversupply.

    Shanghai Provident Fund Management Center plans to issue the securities Dec. 4, according to statements on the Shanghai Clearing House website Friday. The move underscores local governments’ push to replenish housing funds that lend money to homebuyers at a cheaper rate than bank mortgage loans.

    Anhui Conch to up West China Cement stake

    ANHUI Conch Cement Co. has agreed to more than double its stake in smaller rival West China Cement Ltd. for HK$4.59 billion (US$592 million) amid consolidation in an industry suffering from overcapacity.

    Conch International Holdings (HK) Ltd., a wholly owned unit of Anhui Conch, plans to increase its holding in Shaanxi-based West China to 51.57 percent from the current 21.17 percent, the companies said Friday. If the transaction goes through, Anhui Conch will have to make a mandatory cash offer for all shares of West China it doesn’t own.

    China Mobile to acquire telecom business

    CHINA Mobile, China’s largest wireless carrier, said Friday it planned to acquire its sister company’s fixed line telecom business for 31.88 billion yuan (US$4.99 billion) to help boost its presence in that business in China.

    CM TieTong, a wholly owned subsidiary of China Mobile, said it has agreed to acquire the fixed line telecommunications business from TieTong, which has over 10 million fixed broadband and fixed line customers across China, according to a China Mobile filing. The payment will be funded by China Mobile’s internal resources.