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GOVT AND POLICIES

Internet association warns of ICO risks

The National Internet Finance Association of China (NIFA) has alerted the market to risks in Initial Coin Offerings (ICOs) and virtual currency trading. Unlawful speculation and trading of virtual currency and ICOs have resurfaced and will harm the legitimate rights of consumers, according to the NIFA and financial regulatory bodies. The NIFA, a self-disciplinary industrial body, warned consumers of potential economic loss and cautioned its members against speculation related to ICOs and virtual currency trading. The government has demanded all-around inspection and solving of illegal actions involving virtual currency trading.

Excavator sales up 21.7% in November

China's 25 leading excavator makers sold a total of 19,316 excavators last month, up 21.7 percent year-on-year, data from the China Construction Machinery Association showed. In breakdown, 17,159 excavators were sold in the domestic market, rising 21.2 percent year-on-year, while exports of the equipment surged 25.6 percent to 2,157. In the first 11 months, total sales amounted to 215,538 units, up 15 percent from the same period last year. Sales of digging machines are an important indicator of the vitality of an economy as demand is usually backed by growth in mining and infrastructure development.

CSRC to pilot spin-off listings of listed firms

China has unveiled new rules on piloting separate listings of listed companies' subsidiaries to help expand financing channels, according to the China Securities Regulatory Commission (CSRC). The new rules specified qualifications for listed companies to spin off and list their subsidiaries, which require them to have been listed for at least three years and be profitable for three consecutive fiscal years. The listed companies should disclose relevant information and apply for review from the board and the shareholder meeting before spinning off, according to the new rules. The listed companies are also required to hire intermediate agencies including independent financial consultants, law firms and accounting firms to assess and supervise the separate listings.

COMPANIES AND MARKETS

Turnover on 'new third board' exceeds $10.8b

Turnover on China's National Equities Exchange and Quotations, also known as the "new third board", reached 75.9 billion yuan ($10.8 billion) from the start of the year to Dec 13. The total number of companies on the board stood at 9,047 on Friday. The exchange was launched in early 2013 to supplement the Shanghai and Shenzhen stock exchanges to serve small-and medium-sized enterprises. It is seen as an easier financing channel for small businesses, with low costs and simple listing procedures.

Samsung invests $8b on chip unit in Xi'an

Samsung is investing further $8 billion into the second phase of its memory chip plant in Xi'an, capital of Northwest China's Shaanxi province. Construction on the second part of the plant's second phase has started, said Samsung Electronics Vice-President Kang Bong-yong. With the new investment, the total investment in the chip plant reaches $25.8 billion. Its first phase involved an investment of $10.8 billion, while the second phase costs $15 billion. The first part of the second phase, with an investment of 7 billion yuan, is expected to be completed and put into operation next March. The second part is scheduled to be finished in the second half of 2021.

Ant Financial joins hands with Vanguard

Chinese fintech firm Ant Financial and US asset manager Vanguard have teamed up to offer Chinese retail consumers investment advisory services. A joint venture by the two firms will provide customized services for investors based on their investment objectives, time horizon and risk preferences. The services are available for minimum investments of 800 yuan ($113) and accessible through the Alipay app, a popular third-party fintech platform run by Ant Financial. Investment and wealth management has seen increased popularity among Chinese. The ratio of adults who had put their money into the wealth management market averaged 47.81 percent in 2018, up 1.84 percentage points year-on-year, while the ratio in rural areas rose 3.32 percentage points to 36.11 percent, data from the People's Bank of China showed.

AROUND THE WORLD

Australia optimistic about FTA with UK

Negotiations on an Australia-Britain free trade agreement are set to accelerate following the Conservatives' victory in the British election. Australian Prime Minister Scott Morrison told News Corp Australia on Monday that he spoke with his reelected British counterpart Boris Johnson on Saturday night and agreed to fast-track trade negotiations, with a final deal potentially being struck within 12 months. Along with the United States, Australia is expected to be one of the first countries to sign a trade agreement with Britain once Brexit has been ratified. "We had a discussion about the FTA… and we are ready to engage on it with him," Morrison said.

S.Korea posts trade surplus for 94 months

South Korea posted trade surplus for 94 straight months through November despite the continued fall in exports, customs office data showed on Monday. The revised figure for trade surplus reached $3.3 billion in November, staying in the black for 94 months since February 2012, according to Korea Customs Service. Exports, which take up about half of the export-driven economy, declined 14.4 percent over the year to $44.1 billion last month, while imports dived 13.0 percent to $40.7 billion. Chip exports plummeted 30.9 percent amid the remaining downturn of business cycle in the global semiconductor industry. Oil product exports reduced 12.2 percent on cheaper crude oil, and shipment of telecommunication devices such as smartphone retreated 4.6 percent.

Russian central bank cuts key lending rate

The Russian central bank has cut its key lending rate by 0.25 percentage point to 6.25 percent, citing lower-than-expected inflation. It is the fifth rate cut in a year. Last time, the bank cut the rate by 0.5 percentage point. The bank said in a statement that among the main factors influencing inflation was good harvest, which contributed to a decline in food prices, rouble appreciation from the start of the year, which limited growth of import prices, and subdued demand. The annual consumer price growth rate declined to 3.5 percent in November.