Brokerages urged to tighten supervision

    THE securities regulator has urged five brokerages to tighten compliance after an inspection of their investment banking businesses showed standards were not strict enough, the regulator said on its official microblog Friday.

    The China Securities Regulatory Commission (CSRC) found that the five companies, including Guotai Junan Securities Co. and Guosen Securities Co., did not do an adequate job in areas such as internal risk control, due diligence and internal workflow. The regulator also named New Times Securities, Dongguan Securities and Zhongtai Securities among the brokerages inspected. Separately, the CSRC warned China’s asset managers not to break the law and urged perpetrators to surrender themselves to the police.

    Money rates decline as liquidity pressure eases

    CHINA’S primary money rates, which rose at the start of last week, were largely lower Friday as liquidity tightness eased after fund injections by the central bank and progress resolving a bond scandal that rocked the market.

    The volume-weighted average rate of the benchmark seven-day repo traded in the interbank market, considered the best indicator of general liquidity in China, was 2.4492 percent Friday, nearly 20 basis points lower than the previous week’s closing average rate. The weighted average rate was 2.6580 percent last Monday.

    Consortium bids for stake in Pakistan bourse

    A CONSORTIUM led by three Chinese exchanges has offered 28 rupees (US$0.27) per share to buy a 40 percent stake in the Pakistan Stock Exchange (PSX), according to a statement and the bourse’s top official.

    The consortium is led by the China Financial Futures Exchange Co., the Shanghai Stock Exchange and the Shenzen Stock Exchange, according to a PSX statement.

    Baidu has IPO plan for video-streaming site

    CHINA’S Internet giant Baidu Inc. is planning an initial public offering (IPO) of its video-streaming site iQiyi.com that could value the unit at up to US$5 billion, The Wall Street Journal quoted people familiar with the matter as saying Friday.

    Baidu is considering listing iQiyi in either Hong Kong or the United States next year. The company is planning to issue a convertible bond or similar instrument to raise funds from investors before the IPO, the newspaper said.