Stocks close higher on Fed comments

    CHINA’S stocks enjoyed their best day in a month, with main indices jumping more than 2 percent, as the domestic market joined a global rally after U.S. Federal Reserve remarks hosed down expectations of imminent interest rate hikes.

    The blue-chip CSI300 index rose 2.6 percent to 3,216.28, while the Shanghai Composite Index gained 2.8 percent to 3,000.64 points. Shenzhen’s startup board ChiNext surged 4.6 percent. Risk appetite improved after Fed Chair Janet Yellen emphasized the need to proceed “cautiously” on tightening policy. But some traders warned that the rally could be short-lived as China’s economy remains fragile.

    Money rates rise sharply on seasonal pressure

    CHINA’S primary money rates rose yesterday as corporates shored up cash positions in the run-up to the end of the quarter reporting period, traders said, while bonds showed signs of stress after a default.

    The volume-weighted average rate of the benchmark seven-day repo traded in the interbank market, considered the best indicator of general liquidity in China, was 2.3484 percent, up 4.01 basis points from the previous day’s closing average rate. The Shanghai Interbank Offered Rate for the same tenor rose to 2.3120 percent, up 0.90 basis points from the previous close.

    China COSCO Shipping to maintain alliances

    CHINA COSCO Shipping plans to retain its current container alliances until they expire, after which it plans to sign a new deal.

    The group’s spokesman, Yu Zenggang, did not say Monday when the current alliance agreements were due to expire. Analysts have said the global network of vessel-sharing alliances on container routes could be shaken up by recent deals, including the formation of China’s largest shipping line through the merger of China Ocean Shipping (Group) Co. (COSCO) and China Shipping Group.

    China Oilfield Services to sell bonds

    CHINA Oilfield Services Ltd. plans to raise up to 10 billion yuan (US$1.54 billion) by selling bonds.

    The oil and gas services provider said after markets closed Tuesday that the proposed bonds be will issued in multiple tranches with a maturity of up to 15 years. It will use the net proceeds from the bond issuance to fund business development and for working capital.