Two largest shipbuilders to merge: Bloomberg

    THE government has given preliminary approval to merge the country’s two largest shipbuilders, China State Shipbuilding Corp. with China Shipbuilding Industry Corp., Bloomberg reported Friday, citing people familiar with the matter.

    It said the move, which will create a firm that will dwarf its South Korean rivals such as Hyundai Heavy Industries Co., could still be subject to change as many details needed to be ironed out by ministries and regulators. 

    Regulator to tighten brokerage ownership rules 

    THE securities regulator said Friday it would issue draft guidelines on the ownership structure of securities firms.

    The China Securities Regulatory Commision (CSRC) told a news conference that major and controlling shareholders of a securities firm must be “industry leaders.” The regulator also said it would set new rules on what entities could own stakes in securities companies. The CSRC added it would seek to revise rules on initial public offerings by the end of this year.

    Dim sum market revives with huge sales

    CHINA’S offshore yuan bond market is having a renaissance as a stubbornly strong currency and improving liquidity overseas spur a surge in issuance.

    Dim sum bonds were almost written off last year as sales plunged to a seven-year low amid increasing competition from Panda bonds (as onshore notes from foreign issuers are known) and dollar-denominated securities. Now the market is heating up, with issuers raising 20.4 billion yuan (US$3.2 billion) in March, the most since September 2016. 

    Large-cap stocks suffer quarterly loss

    CHINA’S markets have been turned upside down this year as the prevailing narrative shifted from deleveraging to trade wars, creating headaches for investors positioning ahead of MSCI Inc. inclusion in June.

    Large-cap stocks, which led gains in 2017, are among the biggest decliners, while beaten-down small caps are staging their best rally in more than two years. Government bonds snapped a five-quarter losing streak as fears of tighter liquidity failed to materialize. Big caps were too “overcrowded,” while government plans to boost development of the new economy sector increased the allure of smaller tech stocks, said Ken Chen, a strategist with KGI Securities.