China Cuts Stock Trading Fees to Woo Investors
China will cut trading fees at its two bourses in Shanghai and Shenzhen by 25%, effective June 1, the nation's securities regulator said, signaling the government is trying to revive the lackluster stock market and attract investors.
PetroChina's Gazprom Deal Still in Deadlock
CNPC, the parent of PetroChina Co (NYSE: PTR, SHA: 601857, HKG: 0857), has for the 15th time failed to reach an agreement on prices to import natural gas from Russia's Gazprom. There was a $100 per 1,000m3 gap, meaning PetroChina could afford the gap should China's natural gas prices double the current levels, Xu Bo, a senior economist with CNPC Economics and Technology Research Institute, told Yicai.com. The deal is likely to be signed within five to six years, Xu predicted.
Sinopec's YPF Deal to Be Aborted
Sinopec Group's deal with Spain's Repsol to buy its 57.4% stake in YPF, the largest oil company in Argentina, will not proceed as the Argentinean government said it will forcefully renationalize YPF. Sinopec Group, China's largest refiner and the parent of Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386), signed the nonbinding contract in April, agreeing to pay Repsol $15 billion for the stake
Video Costs Hold Back Sohu Profits
Sohu.com Inc (Nasdaq: SOHU), a leading Chinese portal and online game operator, posted $227 million in revenues and $24 million in net profits for Q1 2012, up 30% and down 46% respectively from the same period a year ago. Costs to operate its video hosting services were blamed for the decline in earnings. Its ad revenue rose 27% year on year and fell 18% quarter on quarter to $83 million during the three-month period.
AirMedia Wins Exclusive Deals with Guangxi Airports
AirMedia Group Inc (Nasdaq: AMCN), a leading Chinese operator of out-of-home advertising platforms, said it has signed a deal with Asiaray Advertising Media Ltd and Guangxi Civil Aviation Development Co to form a joint venture that will exclusively operate media resources in four airports in Guangxi province. Guangxi Civil Aviation Development Co is a wholly-owned subsidiary of Guangxi Airport Group, which owns and operates the four airports. Under the agreement, the joint venture's exclusive operating right has an initial term of eight years through June 30, 2020, and will be extended for another eight years unless there is breach of contract.
Qiao Xing Sued by Bronstein, Gewirtz & Grossman
Bronstein, Gewirtz & Grossman LLC said a class action suit was filed to the United States District Court of the Virgin Islands on behalf of purchasers of the common stock of Qiao Xing Universal Resources Inc (Nasdaq: XING), a Chinese manufacturer of telecommunication terminals and equipment. The company and its present and former directors are charged with failing to disclose that in June 2011 Qiao Xing's then chairman, Lin Wurui, transferred the company's funds to his bank account. Qiao Xing shares were halted on April 16, 2012. Four days later the company said its audit committee will launch an investigation into the case.
Zhongyuan Special Steel Trims Sany Stake
Zhongyuan Special Steel Co (SHE: 002423) said its wholly-owned subsidiary, Henan Xinghua Machinery Manufacturing Co, has sold ¥1.28 million in shares of Sany Heavy Industry Co (SHA: 600031) over the past month, profiting ¥12.17 million. The proceeds are equivalent to 13.4% of Zhongyuan's net profit last year. Zhongyuan said it cashed in on the selling to replenish its capital.
$1 = ¥6.27