China Expands Short Selling
Chinese authorities plan to launch a new intermediary body that will help expand the country's nascent margin trading and short selling market in March, the Wall Street Journal reported, citing a person familiar with the situation. China Securities Finance Corp, which was established October 28, 2011 and has registered capital of ¥7.5 billion, can borrow cash or securities from institutions including banks, fund management companies and insurers, and lend money or securities to brokerages. Its shareholders include the Shanghai Stock Exchange, the Shenzhen Stock Exchange and China Securities Depository & Clearing Corp. A total of 25 brokerages have received approval to participate in the program.
China's FDI Totals $115b in 2011
China's foreign direct investment will likely rise 9% to $115 billion in 2011, the Ministry of Commerce estimated. The number may have dropped 21% year on year to $11 billion in December.
China's Economy Tipped to Slow Further in Q4
China's economic growth may have slowed to 8.6% in Q4 2011, down from 9.1% in the previous quarter, and inflation may have eased to 4% in December, down from 4.2% in November, according to a poll by Yicai.com. The economists surveyed all predicted a cut in bank reserve requirements within a month.
China's Third-Party Billing Turnover Exceeds ¥2t in 2011
Turnover of China's third-party payment market amounted to ¥2.12 trillion in 2011 and is projected to reach ¥3.84 trillion in 2012, ¥6.41 trillion in 2013 and ¥9.94 trillion in 2014, according to Analysys International.
¥1.2t Deposited with Top Four Banks in Dec
China's top four state-owned lenders attracted ¥1.25 trillion in Renminbi-denominated deposits in December, setting a monthly record over the past three years, according to well-informed sources. They lent a combined ¥210 billion in December.
40% Chinese Dairies Kicked Out in 2011
China's General Administration of Quality Supervision, Inspection and Quarantine revoked 426 licenses for dairy companies, or 40.4% of the total, in 2011, said Zhi Shuping, the head of the administration. The announcement came after the nation was plagued with a batch of food safety scandals, including last week's incident that involved Mengniu – China's biggest milk maker – caught with carcinogenic products.
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