Zoomlion’s bid for Terex ‘didn’t face forex hurdle’

    CHINA’S foreign exchange regulator said yesterday that Zoomlion Heavy Industry Science and Technology Co.’s bid for U.S. crane maker Terex Corp. did not have to face any foreign currency hurdle.

    Zoomlion said last week that it had dropped its US$3.4 billion bid for Terex after failing to agree on terms, clearing the way for a smaller deal between Terex and Finland’s Konecranes. The State Administration of Foreign Exchange said in a statement that it would continue to support firms that wish to expand overseas. Talks for Zoomlion to buy Terex were terminated solely due to a failure to agree on price, Xinhua quoted Zoomlion vice president Sun Changjun as saying.

    Two banks plan to sell asset-backed securities

    CHINA Construction Bank Corp. (CCB) is planning to sell asset-backed securities tied to nonperforming loans and Industrial & Commercial Bank of China Ltd. (ICBC) is also planning a similar offering, sources said yesterday.

    CCB is preparing to make an offering of asset-backed securities tied to soured loans and the size and price haven’t yet been decided, said one of the sources. ICBC’s plan is still in the early stages. So far, no external agents have been involved in ICBC’s plan, according to one of the sources.

    Stocks dip as investors take profit

    CHINA’S stocks dipped yesterday following the previous day’s sharp rally, as growing optimism about MSCI adding mainland stocks to its emerging markets index was offset by worries over China’s economy and a looming U.S. rate hike.

    The blue-chip CSI300 index fell 0.28 percent to 3,160.55, while the Shanghai Composite Index dipped 0.11 percent to 2,913.51 points. There was little market reaction to the official and private surveys on China’s manufacturing activity, which were roughly in line with expectations.

    ICBC plans US$1b European investment

    INDUSTRIAL & Commercial Bank of China Ltd. (ICBC) Tuesday announced plans to put 1 billion euros (US$1.1 billion) into a company focused on central and eastern Europe.

    ICBC said its Hong Kong unit will invest in a European-focused financial holding company that will raise funds from European nations and global markets to invest in projects under China’s “One Belt, One Road” initiative, which aims to strengthen economic and transport ties between Europe and Asia.