Debt-to-equity plan to be published ‘soon’

    CHINA could allow industrial firms to convert their debts into equity stakes as early as next month, with the government now putting the finishing touches to a new plan, China Securities Journal reported yesterday.

    The newspaper said the State Council, China’s Cabinet, was currently finalizing plans to allow “firms in the real economy with development potential” to convert their debt into equity. Debt has emerged as one of China’s biggest challenges, with the total load rising to 250 percent of gross domestic product last year. In a bid to rejuvenate its economy, China is aiming to eliminate failing, debt-ridden firms, but it has also pledged to help “restructure” struggling firms that still remain competitive.

    Lower coal prices, sales dent Shenhua profit

    CHINA Shenhua Energy Co.’s net profit fell 19.3 percent in the first half from a year earlier on lower coal prices and sales.

    Shenhua Energy, China’s major coal miner, said yesterday that its first-half net profit was 10.83 billion yuan (US$1.62 billion), compared with a net profit of 13.42 billion yuan a year ago. First-half revenue fell 12.5 percent to 78.72 billion yuan from 90.00 billion yuan a year earlier. It didn’t declare an interim dividend.

    China Pacific Insurance profit down 46%

    CHINA Pacific Insurance (Group) Co. yesterday reported a 46 percent decline in first-half net profit, in part due to lower investment income.

    The Hong Kong and Shanghai-listed insurer said that first-half net profit was 6.14 billion yuan (US$921 million), down from 11.30 billion yuan a year earlier. The company’s net premiums during the period rose 19.6 percent to 122.12 billion yuan from 102.06 billion yuan, while investment income fell 32 percent to 21.34 billion yuan from 31.49 billion yuan a year ago.

    Sinopec first-half profit slips 22%

    CHINA Petroleum & Chemical Corp., the world’s biggest oil refiner, yesterday posted a 22 percent decline in profit for the first half of the year as oil’s collapse overpowered the boost from cheaper crude used to make fuels and chemicals.

    Net income dropped to 19.9 billion yuan (US$3 billion), said the Beijing-based company, known as Sinopec. Revenue slumped 37 percent to 879.2 billion yuan. Sinopec’s earnings compare with a 98 percent profit drop by rival PetroChina Co.