Exchange eases curbs on option trading

    THE Shanghai Stock Exchange (SSE) said Friday it would relax some restrictions on option trading, as regulators move to unwind some measures imposed during a stock market rout last year.

    The exchange said that a daily position-opening quota of the SSE 50 ETF option will only apply to call options starting today, in effect loosing current restrictions. Currently, the quota applies to both call and put options. The SSE 50 ETF is the only option product currently trading on the exchange. This is a reversal of a policy changes announced last September. At the time, regulators were scrambling to limit derivative trading in an effort to stem the market’s slide. But the China Financial Futures Exchange said Thursday media reports suggesting the exchange planned to loosen trading restrictions on index futures trading were not factual.

    Everbright Securities taps cornerstones for IPO

    EVERBRIGHT Securities Co., a brokerage controlled by China Everbright Group Corp., has secured commitments from eight cornerstone investors for its up to US$1.2 billion Hong Kong share offering, IFR reported Friday, citing people close to the deal.

    The investors include China Shipbuilding Capital, China State Construction Engineering Corp. and Hengjian International, added IFR. The cornerstone commitments will make up about 70 percent of the deal value.

    Anhui ARN takes stake in German auto supplier

    CHINA’S Anhui ARN Group has taken a 6.06 percent stake in German automotive supplier SHW AG, according to a regulatory statement Friday.

    SHW, which has roots as a steelmaker going back to 1365, makes pumps and engine components for cars, trucks and wind power stations. Anhui ARN Group will be the company’s second-largest shareholder behind Commerzbank, which holds 10.8 percent.

    Alibaba is not making an investment in Netflix

    ALIBABA Group Holding Inc. is not making an investment in Netflix Inc., Alibaba spokesman Bob Christie said Friday.

    “We are not preparing any investment into Netflix,” said Christie, who was responding to market rumors about a possible deal between the Chinese e-commerce company and the U.S. video service. Netflix said that it doesn’t comment on rumors or speculation but it has been “pretty clear about China and [its] long-term goals there.”