Vanke shares to resume trading

    SHARES of China Vanke, embroiled in one of high-profile corporate power struggles, will resume trading today on Shenzhen Stock Exchange and it’s widely expected that the shares will drop by the daily limit of 10 percent.

    Shares of Vanke in Hong Kong jumped 4.3 percent Friday, compared to a 1.8 percent gain in the broader market. Vanke’s shares in Shenzhen have been suspended since Dec. 18. The company said Friday that contract sales in June reached 42.4 billion yuan (US$6.37 billion), and its contract sales in the first half of the year totaled 190.1 billion yuan.

    State Grid to buy big stake in Brazil’s CPFL

    CPFL Energia SA, Brazil’s largest power distributor, said Friday that the world’s largest utility, China’s State Grid International Development, will buy a controlling stake in the company for 5.85 billion reais (US$1.8 billion).

    Camargo Correa SA, a privately held Brazilian engineering, real estate, textile and shipbuilding company, is selling a 23 percent stake, CPFL said in a securities filing. State Grid will pay 25 reais for each of Camargo’s 234 million CPFL shares. Other shareholders have the option to outbid State Grid or sell their stakes to the Chinese company on equal terms, which could increase the final size of the deal.

    Fed ‘won’t take eye off China currency moves’

    THE U.S. Federal Reserve will keep a close eye on China’s currency moves and its impact on the global economy and markets, Cleveland Fed President Loretta Mester said Friday.

    “They (China) have said they are going to allow some leeway in the yuan so we are going keep an eye on that,” Mester, a voting Fed member, said at an event hosted in London by the European Economics and Financial Center (EEFC).

    IPOs by polluters to be banned

    THE securities regulator said Friday it would ban initial public offerings (IPOs) by companies which have violated environmental protection rules over the previous 36 months.

    The China Securities Regulatory Commission said the move is part of Chinese efforts to combat pollution. The commission also said it would bar additional share sales by listed companies that break environmental rules, and will actively encourage companies to issue bonds to finance “green” business.