International organization to issue SDR debt

    AN international development organization is preparing to issue the first debt instrument denominated in special drawing rights (SDRs) in China’s interbank market, online financial magazine Caixin reported, citing a central bank official.

    The currency basket determining the value of SDRs, a synthetic reserve currency administered by the International Monetary Fund, will be expanded to include the yuan beginning in October, according to a long-awaited decision by the IMF last November. The international development organization could issue the bonds as soon as late August, Caixin reported Sunday, quoting Zhou Juan, director of the People’s Bank of China’s international office. The Caixin report did not specify the name of the organization or the size of the issuance.

    CNPC sees pipeline spinoff as becoming unlikely

    CHINA National Petroleum Corp. (CNPC) decided last month to invest in expanding a major natural gas pipeline after determining the government will no longer seek to spin off its pipeline assets into an independent company, people with knowledge of the plan said.

    One reason why a national pipeline company that provides access to all producers is no longer needed is because opposition among policymakers has increased to opening upstream exploration to more participants, which was being considered as part of the industry’s reform guidance, according to the sources.

    Shares eke out gain as volatility hits two-year low

    CHINA’S shares swung between gains and losses for much of yesterday, with some energy companies declining amid a drop in crude prices and consumer stocks eking out a gain.

    The CSI300 index edged up 0.2 percent at 3,230.89 points, while the Shanghai Composite Index inched up 0.1 percent at 3,015.83 points. Trading volume was 21 percent below the 30-day average, with a measure of 10-day volatility dropping to a two-year low.

    Trendy International plans domestic IPO

    CHINESE fashion house Trendy International Group Co., owner of the Miss Sixty jeans brand in Asia, is planning a domestic initial public offering (IPO) as soon as the end of next year, sources with knowledge of the matter said.

    The Guangzhou-based company plans to seek a valuation of about US$5 billion. Trendy International has picked a domestic investment bank to work on the share sale, the sources said.