Eastern Airlines to Issue ¥8.8b Bonds
China Eastern Airlines Corp (NYSE: CEA, SHA: 600115, HKG: 0670), the nation's second largest carrier by passenger traffic, said it plans to issue ¥8.8 billion of 10-year corporate bonds to fund aircraft purchases, repay bank loans and replenish operating capital. The offer is open to the public. It became the second major Chinese carrier this week to announce fundraising plans as the Chinese government steps up developing the aviation industry. China Eastern Airlines chairman Liu Shaoyong said earlier this week that the company's debt ratio would be reduced by about 10 percentage points to 70% by 2015.
Gome Prioritizes Opening Stores of Energy-Saving Appliances
Gome Electrical Appliances Holding Ltd (HKG: 0493), China's second largest chain store by revenue, agreed to buy a total of ¥18 billion worth of energy-saving home appliances from Siemens AG (NYSE: SI) and Skyworth Digital Holdings Ltd (HKG: 0751). Separately, Gome said it plans to build 1,000 stores that sell energy-saving appliances nationwide. Earlier this month Gome agreed to buy a total of ¥20 billion worth of energy-saving items from Qingdao Haier Co (SHA: 600690) and Samsung Electronics Co.
Tencent Said to Offer Stock Trading Software, Denies Phone Rumor
Tencent Holdings Ltd (HKG: 0700), one of China's biggest Internet firms, is considering establishing a division dedicated to developing software for securities trading strategies and systems, a well-informed source said. Tencent is to offer what it calls level 2 software worth ¥980 for free, posing a grave threat to several existing firms that provide such software. Separately, Tencent chairman Ma Huateng denied rumors the company was working with a handset maker to offer a ¥2,000 smartphone known as the QPhone.
Evergrande May Contract Value Edges Vanke's
Evergrande Real Estate Group Ltd (HKG: 3333) said it sold 1.73 million m2 in floor space fetching ¥10.37 billion in May, up 52.4% and 33.3% respectively from the same month last year. The value has eclipsed China Vanke Co (SHE: 000002), making the company China's number one developer for the month.
Mengniu to Spend Another ¥3.5b Building Cow Farms
China Mengniu Dairy Co (HKG: 2319), a leading Chinese dairy maker, said it plans to invest ¥3.5 billion building eight to 12 modern farms by the end of 2015 in a move to boost quality and consumer confidence following a spate of dairy safety scandals in the country. Mengniu had previously announced a plan with a similar amount of investment to build pastures in three northeastern provinces as well as Hebei province and Inner Mongolia.
New China Life Insurance Premiums Near ¥48b Jan-May
New China Life Insurance Co (SHA: 601336, HKG: 1336) said its premium incomes totaled ¥47.86 billion between January and May, without offering historic figures for comparison.
National Chemical Signs ¥43b New Contracts
China National Chemical Engineering Co (SHA: 601117) said it has sealed ¥42.86 billion worth of deals between January and May, including ¥23.49 billion of overseas deals, and that its actual revenue totaled ¥16.32 billion during the five-month period. No comparison was made with historic figures.
$1 = ¥6.33