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☆ China's re-opening to lift Asia equity capital market volumes from 3-year lows
▼ + stars: | 2022-12-16 | by ( Scott Murdoch | Thomson Reuters | Scott Murdoch Has Been A Journalist For More Than Two Decades Working For Thomson Reuters | ) www.reuters.com time to read: +4 min

SYDNEY, Dec 16 (Reuters) - Asian equity capital markets activity, languishing at three-year lows now, is set to get a much needed boost in 2023 from China's expected re-opening to the rest of the world after a spate of COVID-19 lockdowns, dealmakers said. "As China's re-opening happens, market activity will come in stages," said Edward Byun, Goldman Sachs' co-head of equity capital markets in Asia ex-Japan, adding that secondary market trading and follow-on capital raisings would benefit first. IPOs in Asia Pacific, including Japan, fell by 43.3% this year in value terms, while total equity capital market deals plunged 52%, according to Refinitiv data. New share sales in Hong Kong plunged 74% to $7.4 billion this year from $28.17 billion in 2021, Refinitiv data showed. In India, IPOs were down nearly 60% to $7.13 billion from $17.05 billion, the Refinitiv data showed.

☆ Stock delisting risks averted as US gains access to audit papers of Chinese tech companies
▼ + stars: | 2022-12-16 | by ( Laura He | ) edition.cnn.com time to read: +3 min

The announcement marks a major breakthrough in a yearslong standoff over how Chinese companies listed on Wall Street should be regulated. There are more than 260 Chinese companies listed on US stock exchanges, with a combined market capitalization of more than $770 billion, according to recent calculations posted by the US-China Economic and Security Review Commission. The United States had increased pressure by passing a law in December 2020 requiring Chinese companies listed in the US to open their books to audit watchdogs. In Friday’s statement, the PCAOB said it had inspected the audits of eight Chinese companies completed by KPMG Huazhen LLP in China and PricewaterhouseCoopers in Hong Kong. She added that the watchdog is continuing to demand complete access in mainland China and Hong Kong moving forward.

☆ California and the Midwest face 'high risk' of electricity shortages in next five years
▼ + stars: | 2022-12-15 | by ( Catherine Clifford | In Catclifford | ) www.cnbc.com time to read: +5 min

Projected energy shortfalls have been projected in that region since 2018, Olson said. The Southwest could also suffer when demand is high and wind energy generation is low in the region. For its annual long-term electricity security assessment, NERC looks at the coming decade, but energy and capacity risk assessment goes out for the coming five years, from 2023 to 2027. There are too many moving parts and uncertainties for a risk assessment past the next five years to be worthwhile, according to NERC. The Federal Energy Regulatory Commission certified NERC to measure and enforce safety standards for the energy grid in the United States in 2006.

☆ China keen on regulatory cooperation in audit of U.S.-listed Chinese firms
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: 1 min

BEIJING, Dec 16 (Reuters) - The China Securities Regulatory Commission is looking forward to working with U.S. regulators to continue promoting future annual audit and supervision on companies listed in the U.S., it said on Friday. "We have always advocated solving regulatory issues of cross-border listing audit through regulatory cooperation mechanisms," the commission said in a statement. The U.S. Public Company Accounting Oversight Board on Thursday said it has determined that it has full access to inspect and investigate firms in China for the first time in history. read moreReporting by Beijing newsroom; Writing by Liz Lee; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

HONG KONG/BEIJING, Dec 9 (Reuters) - Chinese regulators and state-owned banks are taking steps to split staff at their workplaces in Beijing, sources told Reuters, as businesses brace for a possible spike in COVID cases after China relaxed virus restrictions in a major policy shift. Other staff are required to work from home, they added. Among China's big four state-owned banks, Bank of China (BOC) (601988.SS) has released a notice to staff that it would split its Beijing workforce into three groups, working in the office on alternate weeks, said a person with direct knowledge. But the bank has yet to decide when to start such rotations, the person added. Other large state banks have also made similar arrangements - splitting up staff into rotating shifts while maintaining a maximum of 10%-20% of staff occupancy in their headquarters in Beijing, said two other people with knowledge of the matter.

The recent attack on two North Carolina substations that cut power to thousands of people has raised concerns about security standards for the country’s electric grid and its numerous power stations, which have faced greater threats in recent years. Nearly 600 electric emergency incidents and disturbances were caused by suspected and confirmed physical attacks and vandalism on the electric grid in those nine years, the reports show. The incidents, which are self-reported by power companies to the federal government, provide little to no detail about what occurred. Paths forward for a new standardThose who want a new security standard said there remain significant bureaucratic headwinds against such a proposal. The North American Electric Reliability Corporation, a nonprofit originally created by the electricity industry, said it created security requirements based on risk, rather than a one-size-fits-all approach.

Funds flowing from banks will allow developers to repay offshore loans and dollar bonds, helping to repair global investors' bruised confidence, two of the sources said. Each of the four banks, Bank of China (601988.SS), China Construction Bank (601939.SS), Industrial and Commercial Bank of China (601398.SS) and Agricultural Bank of China (601288.SS), will pick several developers to fund, the three sources said. The third source said that, while the big four banks preferred fresh lending to go to state-backed developers, they would have to include some private firms, which have a greater need for offshore loans. Chinese banks make offshore loans secured against domestic assets to companies that need foreign funds, but regulatory tightening in the last couple of years to rein in debt-fuelled empire-building by corporates hampered that kind of lending. China's central bank will also offer cheap loans to financial firms to buy bonds issued by property developers, separate sources have told Reuters.

HONG KONG/SHANGHAI/BEIJING, Dec 2 (Reuters) - China has ordered its top four state-owned banks to issue offshore loans to help developers repay overseas debt, three people with knowledge of the matter told Reuters, rolling out its latest support measure for the cash-starved property sector. The regulators have given 'window guidance', or verbal orders that leave no paper trail, to the banks, setting a date of Dec. 10 by which to make the loans secured against domestic assets, two of the sources said. Funds received after the latest step will allow developers to repay offshore loans and dollar bonds in a bid to repair global investors' bruised confidence in the sector, two of the sources said. Each of the four banks, Bank of China (601988.SS), China Construction Bank (601939.SS), Industrial and Commercial Bank of China (601398.SS) and Agricultural Bank of China (601288.SS), will pick several developers to fund, the three sources said. The People's Bank of China, the central bank, and the China Banking and Insurance Regulatory Commission (CBIRC) did not immediately respond to Reuters' requests for comment.

HONG KONG, Nov 30 (Reuters Breakingviews) - President Xi Jinping is wrapping up his massive property stress test, but it looks like few have passed. It was precisely what the now near-collapsed China Evergrande (3333.HK) had asked for back in 2020, before regulators dashed its hopes of listing in the Chinese mainland. Among them is Country Garden (2007.HK), whose U.S. dollar bond that matures in January has rebounded 43% to 96 cents on the dollar this month. In comparison, an Evergrande bond due in January still trades at 5.5 cents. These property bailouts are set to leave most in the sector out in the cold.

☆ China property sector surges on fundraising support, but COVID protests cloud outlook
▼ + stars: | 2022-11-29 | by ( Xie Yu | Jason Xue | ) www.reuters.com time to read: +5 min

The move is the latest regulatory easing as Beijing steps up support for the property business, a sector that accounts for a quarter of the Chinese economy. Yuan-denominated bonds issued by Chinese developers CIFI Group, Guangzhou Times Holdings, Country Garden rocketed between 20% and 50% each on Tuesday. “Most of the funding channels the property developers need are covered now,” said Gary Ng, senior economist at Natixis. “It is now up to whether the market, or basically the state players will actually support the sector,” he said. If funds could be raised from state-backed investors, there will be meaningful consolidation in the property sector, Ng said.

☆ China property shares surge on opening up of equity financing option
▼ + stars: | 2022-11-29 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

REUTERS/Aly SongHONG KONG (Reuters) - Shares of Chinese property companies soared on Tuesday after the country’s securities regulator lifted a ban on equity refinancing for listed property firms, in the latest support measure for the embattled real estate sector. The China Securities Regulatory Commission (CSRC) said late on Monday it would broaden equity financing channels, including private share placements for China and Hong Kong-listed Chinese developers, lifting a years-long ban. The latest regulatory measure comes Beijing steps up support for the property sector, a pillar accounting for a quarter of the world’s second-biggest economy. Beijing suspended refinancing by listed property firms in August 2009 as part of its attempts to control surging home prices. Regulators briefly lifted the suspension by granting approval to refinancing requests by a selection of property firms starting from 2013, but imposed back restrictions in 2016 to curb housing prices.

☆ Philippine leader hopes court will reconsider Manila power deal
▼ + stars: | 2022-11-27 | by ( ) www.reuters.com time to read: +2 min

The court allowed South Premiere Power Corp., a unit of San Miguel Corp (SMC.PS) to suspend a power supply agreement with Manila Electric Company (Meralco) (MER.PS) after the companies were prevented from raising tariffs by the regulator. "We hope that the CA (Court of Appeals) will reconsider and include in their deliberations the extremely deleterious effect this will have on power prices for ordinary Filipinos," Marcos was quoted as saying, describing the decision as "unfortunate". South Premiere and Meralco had sought to raise prices amid higher costs of coal, which the Energy Regulatory Commission rejected in September citing fixed prices set under power supply agreements. Marcos, who began his six-year term in June, has promised lower electricity rates, which are among the highest in Asia. Higher electricity prices would put further pressure on Philippine inflation, which hit the fastest pace in nearly 14 years last month.

☆ Neuberger Berman gets Chinese regulatory approval to conduct mutual fund business
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: 1 min

BEIJING, Nov 25 (Reuters) - U.S. asset manager Neuberger Berman's Chinese unit said on Friday it has been granted a license by the Chinese securities regulator to conduct mutual fund business. It officially becomes the second wholly foreign-owned fund management company allowed to conduct mutual fund business in the country, the company said on its official WeChat account. BlackRock (BLK.N) already operates a fully owned mutual fund business in China. In September, the China Securities Regulatory Commission (CSRC) approved Neuberger Berman to set up a wholly owned mutual fund unit in Shanghai. Reporting by Samuel Shen, Ella Cao and Twinnie Siu, Editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

But it's much higher compared to the U.S. companies' issuance of $17.3 billion and Europe's $16.4 billion so far. Internally, China has a lower inflation environment and loosening monetary policy, equity market valuation is more resilient," said Mandy Zhu, head of China Global Banking - UBS. OVERSEAS LISTINGS DROPHowever, Chinese companies' listings overseas have dropped sharply this year. The data showed that IPO issuances on the mainland fell just 11%, while Chinese listings in U.S. and Europe slumped 97% and 81%, respectively. She added that a recovery in the U.S. market listings will take a longer time, given the uncertainty over U.S.-China relations.

☆ U.S. grants $1.1 bln to keep Diablo Canyon nuclear plant open
▼ + stars: | 2022-11-21 | by ( Timothy Gardner | ) www.reuters.com time to read: +4 min

Diablo is the last operating nuclear plant in California. The Biden administration believes nuclear power is critical in curbing climate change and wants to keep plants open ahead of the development of next-generation reactors. Poppe said the plant is also ordering more uranium fuel for the reactor, and dry casks for storing nuclear waste. Some politicians who have been wary of problems associated with nuclear waste have come out in support of the Civil Nuclear Credit program. Holtec International, which in May bought the Palisades nuclear plant in Michigan, said on Friday that DOE rejected its application for funding.

☆ To save salmon, U.S. approves largest dam removal in history
▼ + stars: | 2022-11-17 | by ( Daniel Trotta | ) www.reuters.com time to read: +2 min

Nov 17 (Reuters) - A U.S. agency seeking to restore habitat for endangered fish gave final approval on Thursday to decommission four dams straddling the California-Oregon border, the largest dam removal undertaking in U.S. history. Dam removal is expected to improve the health of the Klamath River, the route that Chinook salmon and endangered coho salmon take from the Pacific Ocean to their upstream spawning grounds, and from where the young fish return to the sea. The U.S. Federal Energy Regulatory Commission issued an order surrendering the dam licenses and approving removal of the dams. "The Klamath salmon are coming home," Joseph James, chairman of the Yurok Tribe, said in a statement. Climate change and drought have also stressed the salmon habitat; the river has become too warm and too full of parasites for many fish to survive.

HONG KONG/WASHINGTON, Nov 16 (Reuters) - U.S. regulators gained "good access" in their review of auditing work done on New York-listed Chinese firms during a seven-week inspection, four sources with knowledge of the matter said - a key step forward in resolving a long-standing bilateral dispute. Inspectors with the Public Company Accounting Oversight Board (PCAOB) conducting the inspection in Hong Kong gained all the information they requested, one of the sources said. They were also allowed to print out some documents to more easily review information despite some initial hesitancy from Chinese officials, the source said. Authorities in China have long been reluctant to let overseas regulators inspect local accounting firms, citing national security concerns. Reporting by Xie Yu and Julie Zhu in Hong Kong, Chris Prentice in Washington; Editing by Sumeet Chatterjee and Edwina GibbsOur Standards: The Thomson Reuters Trust Principles.

☆ China Oct new home prices fall at fastest annual pace in 7 years
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

On an annual basis, new home prices slumped 1.6%, the fastest pace since August 2015, worsening from the 1.5% year-on-year fall in September and marking the sixth month of contraction. New home prices declined 0.3% month-on-month, easing 0.2% in September, according to Reuters calculations based on National Bureau of Statistics (NBS) data. The property sector has struggled with defaults and stalled projects since authorities started to clamp down on excessive leverage in mid-2020, hitting market confidence and weighing on economic activity. Data on Tuesday also pointed to further weakness in the cash-strapped sector, showing real estate investment fell at its fastest pace in 32 months in October. A notice to financial institutions from the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, sources said on Sunday.

☆ U.S. nuclear plants expect government decision on credits by year-end
▼ + stars: | 2022-11-15 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 15 (Reuters) - Two companies that have applied for funding to keep struggling nuclear power plants open said they expect to hear from the U.S. Department of Energy by the end of the year. Both power utility PG&E Corp (PCG.N) and Holtec International applied to the first phase of the $6 billion DOE Civil Nuclear Credit program to keep their reactors running. The Biden administration believes nuclear power is essential to fight climate change, but plants are struggling with costs and competition from natural gas plants and renewables. Poppe said PG&E is applying to the Nuclear Regulatory Commission for a license allowing Diablo to continue operating. She said Diablo is also ordering more uranium fuel for the reactor, and dry casks for storing nuclear waste.

HONG KONG/SYDNEY, Nov 15 (Reuters) - The fintech arm of Chinese e-commerce firm JD.Com (9618.HK) aims to win Beijing regulators' approval to list in Hong Kong as soon as the end of the year, three people with direct knowledge of the matter said, after a first attempt failed earlier this year. Reuters reported in May that JD Tech's original plan for a Hong Kong IPO was put on ice because it could not get regulatory approval for the deal to proceed. As a domestically incorporated company, JD Tech - JD.Com's fintech, cloud and artificial intelligence unit - needs approval from the China Securities Regulatory Commission (CSRC) to list offshore, including in the Chinese-controlled territory of Hong Kong. JD Tech, which was hived off as a separate unit in mid-2017, had appointed several banks to work on the IPO, but progress had slowed as it failed to win regulatory approval first time around, sources have previously told Reuters. read moreReporting by Julie Zhu and Kane Wu in Hong Kong and Scott Murdoch in Sydney; Editing by Sumeet Chatterjee and Kenneth MaxwellOur Standards: The Thomson Reuters Trust Principles.

The plan comes as the cash-strapped sector has struggled with defaults and stalled projects, hitting market confidence and weighing on the world's second-largest economy. Policymakers' previous efforts to help financing has done little to bolster the property market. The Hang Seng Mainland Properties Index (.HSMPI) jumped 16.2%, with the share prices of many Chinese property developers posting double-digit gains. The notice "introduced by far the most comprehensive set of support measures for the ailing property market," it said. Some investors remained cautious about the impact of the latest policy, however, as regulators have already made many attempts to revive the property sector and the macro environment remains weak amid the country's COVID restrictions.

☆ China plan to restore sector liquidity boosts property stocks
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Nov 14 (Reuters) - Chinese property stocks soared on Monday as the market cheered an aggressive plan outlined by Chinese regulators to shore up liquidity in the embattled sector, with the sub-index surging close to a two-month high in early trading. The Hang Seng Mainland Properties Index (.HSMPI) gained 15%, while top property developers Country Garden (2007.HK) soared 33%, narrowing gains after rallying as much as 52% to the highest since July 27. Longfor Group (0960.HK), Agile Group (3383.HK), R&F Properties (2777.HK), Logan Group (3380.HK) and KWG Group (1813.HK) all jumped almost 30%. Two sources told Reuters a notice to financial institutions from the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, in a major push to ease a deep liquidity crunch that has plagued the property sector since mid-2020. Reporting by Clare Jim; Editing by Ana Nicolaci da Costa and Bradley PerrettOur Standards: The Thomson Reuters Trust Principles.

☆ China's property shares jump as regulators outline new financing package
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Nov 14 (Reuters) - Chinese property stocks soared on Monday as the market cheered a new aggressive financing package outlined by Chinese regulators to shore up the liquidity of its embattled property sector, with the shares of many major companies surging over 14%. Large property developers Country Garden (2007.HK), Longfor Group (0960.HK), CIFI Holdings (0884.HK) and Greentown China (3900.HK) all jumped close to 15% at market open. The Hang Seng Mainland Properties Index (.HSMPI) gained 9.7%. Two sources told Reuters a notice to financial institutions from the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, in a major push to ease the deep liquidity crunch which has plagued the property sector since mid-2020. Reporting by Clare Jim; Editing by Ana Nicolaci da CostaOur Standards: The Thomson Reuters Trust Principles.

☆ China regulators order more financing support for property firms
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +4 min

The move, first reported by Bloomberg, comes as cash-strapped property developers struggle to tap sources of funding to finish projects and pay suppliers. Chinese regulators are telling financial institutions to allow real estate companies to defer repayment of some loans, such as property development and trust loans, the sources said. China's property sector, once a pillar of growth, has slowed sharply this year as the government sought to restrict excessive borrowing by developers. Goldman Sachs said in a note that the basic principles of the property measures are not new. Chinese regulators expanded a key financing support programme designed for private firms, including real estate companies, to about 250 billion yuan ($35.18 billion) this week.

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