Brokerages asked to curb junk bond underwriting

    THE Shanghai Stock Exchange has asked more than 30 securities firms to curtail junk bond underwriting because of rising defaults, the Securities Times paper reported Tuesday.

    Exchange officials also said that sub-AA rated bonds, property bonds, industries with overcapacity and local government investment vehicles accounted for too high a percentage of debt on the exchange, the paper reported. Recent analyses of Shanghai exchange data found that of the 57 firms posting bond listing announcements in Shanghai in October, close to half were local-government-owned project or infrastructure investment firms.

    China Southern has new president

    CHINA Southern Airlines Co. is set to name the former head of Air China Ltd. as its chief, in an effort to fill a leadership void after its chairman resigned due to a disciplinary probe against him by the Chinese Communist Party.

    The government yesterday said it named Wang Changshun, deputy head of China’s Ministry of Transport, as president of China Southern Air Holding Co., State-owned parent of the Guangzhou-based airline. He will also assume the chairmanship of Hong Kong and Shanghai-listed China Southern, following approval from the company’s board.

    Ant Financial said to be in talks to invest in Caixin

    ALIBABA Group Holding Ltd.’s financial affiliate is in talks to invest in Chinese business magazine publisher Caixin Media Co. as billionaire founder Jack Ma expands his media interests, according to two people familiar with the matter.

    Caixin has been discussing a stake sale with Zhejiang Ant Small & Micro Financial Services Group Co., the sources said. No deal has been signed, the sources said.

    MSCI deletes closely-held Hong Kong stocks

    GOLDIN Properties and casino operator Imperial Pacific were among 18 companies deleted from MSCI indices Tuesday, the index provider said, amid growing investor concerns over shareholder concentration at Hong Kong-listed companies.

    The unusual decision by MSCI is a blow to Hong Kong’s status as an international financial center, shining a spotlight on the lack of transparency around shareholder structures. Many Hong Kong companies are owned by a small group of shareholders who cannot always be identified through public filings, making their stock more vulnerable to manipulation.