Investor punished for illegal trading

    CHINA’S securities market regulator said Friday it had punished an investor for conducting what it called illegal cross-market trading through the Shanghai-Hong Kong stock connect program.

    The case was the first of its kind and involved more than 40 million yuan (US$5.8 million) in illicit gains, the China Securities Regulatory Commission (CSRC) said. The CSRC did not give the full name of the trader or say what was illegal about the trading activity. It also did not state what punishment was imposed.

    Deutsche Bank sells Hua Xia Bank stake

    DEUSCHE Bank said Friday it has sold its 20 percent stake in Chinese lender Hua Xia Bank for a total sum of around 23.2 billion yuan (US$3.37 billion) to PICC Property and Casualty Co.

    The consideration for the shares is at the lower end of the 23 to 25.7 billion yuan range Deutsche was hoping to get when the sale was first announced late last year. The 23.2 billion yuan includes dividends paid to Deutsche Bank earlier this year. PICC said in a separate statement that it paid 22.444 billion yuan (US$3.26 billion) for the shares.

    Alibaba buys into supermarket chain Sanjiang

    E-COMMERCE giant Alibaba Group Holding Ltd. plans to invest 2.1 billion yuan (US$305 million) in supermarket chain Sanjiang Shopping Club Co. to further expand its retail presence.

    Sanjiang said that announcements it had made about Alibaba’s investment had prompted the Shanghai Stock Exchange to ask whether Alibaba will ultimately seek control. Under the terms of the deal, Alibaba will subscribe to a private placement in Sanjiang, which will help raise up to 1.5 billion yuan and be equivalent to a 25 percent stake in the supermarket operator. Sanjiang also plans to issue up to 188 million yuan worth of exchangeable bonds to Alibaba, equivalent to 16.4 million of Sanjiang’s shares.

    Evergrande raises stake in Vanke to 9.45%

    PROPERTY developer China Evergrande Group has spent a total of around 22.26 billion yuan (US$3.24 billion) for a 9.452 percent stake in rival China Vanke Co.

    China Evergrande said Friday that it further raised its stake in China Vanke by buying 128.8 million yuan-denominated shares in the Hong Kong and Shenzhen-listed property developer during Nov. 10 to 17. Before the latest disclosure, China Evergrande already owned 8.29 percent interest in Shenzhen-based China Vanke.