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TODAY'S BRIEFS
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WHO: Deadly virus likely won't threaten Olympics
The World Health Organization said that an infectious virus responsible for the deaths of 24 children in China is unlikely to threaten the Beijing Olympics, although it is too early to say whether the infection has peaked, AP reported. The enterovirus 71, or EV-71, causes severe hand, foot and mouth disease and mostly affects children. A representative of WHO China said that the virus normally peaks in June and July, which means there could still be an increase in infections across Asia. China's Health Ministry issued a nationwide alert after EV-71 infected more than 4,500 children in central Anhui province and resulted in 22 deaths. The two most recently reported deaths occurred in the southern province of Guangdong. | | |
ArcelorMittal, Angang in informal talks
ArcelorMittal has held informal discussions with Angang Steel about some form of cooperation in China, the Financial Times reported. Luxembourg-based ArcelorMittal is the world's largest steel producer. Angang Steel is China's second-largest steel company. ArcelorMittal CEO Lakshmi Mittal proposed buying a stake of up to 25% in Angang to the firm's chairman Zhang Xiaogang in a private meeting over two months ago. While Zhang declined the offer, he told the paper in an interview that he was open to a much smaller investment along the lines of 1-2%. He also said Angang was open to cooperating with ArcelorMittal in new steelmaking or mining projects. Zhang said Angang could gain international experience by working with ArcelorMittal, perhaps by both companies taking an equity stake in a stand-alone production venture. | | |
ABC's Q1 operating profit up 71%
Agricultural Bank of China (ABC) reported a first-quarter operating profit of US$4.9 billion, up 71% year-on-year, the South China Morning Post reported, citing state media. Lending grew by 5% to US$882.9 billion during the period. Non-interest income rose 53% to US$854.1 million. The paper also cited a separate state media report as saying that a management reshuffle at China's four largest banks would quicken Agricultural Bank's plans for a public listing. Industrial and Commercial Bank of China (ICBC) board secretary Pan Gongsheng may be tapped as Agricultural Bank's vice-president in order to help with the lender's stock restructuring plan. Pan played a key role in the restructuring of ICBC prior to its 2006 listing. Several of China's other major banks have reported strong first-quarter profit growth. | | |
Lloyd's plans mainland expansion
Lloyd's plans to expand its mainland reinsurance business as domestic insurers face massive payouts arising from natural disasters such as the snowstorms that struck China in February, the South China Morning Post reported. In an interview with the paper, Lloyd's chairman Lord Peter Levene said that reinsurance will be the firm's focus for now in China, though it may at some point offer general insurance services. He noted that few domestic companies were providing reinsurance, as the concept is still new in China. China Reinsurance (Group) is the mainland's leading reinsurer, though foreign players Munich Re and Swiss Re are licensed to operate in China. Lloyd's was allowed to set up a wholly owned company in Shanghai last year. | | |
Resource tax faces reform
China's government will likely reform its resource tax in the second half of this year, the South China Morning Post reported, citing state media. The long-awaited reform will likely include a change from taxing resources based on volume to taxing based on sales value, but will not impose different rates on mines based on the quality of their resources. This could disappoint those who have advocated for new tax policies as a tool to discourage wasteful mining, the paper said. The resource tax reform has been under consideration since June of last year. | | |
Kunming Airport courts foreign investors
Kunming International Airport is seeking as much as US$400 million from foreign investors including Goldman Sachs, Macquarie and Singapore's Changi Airport, the South China Morning Post reported. Yunnan Airport Group is developing an international airport in the southwestern city of Kunming, following state council approval for a US$3 billion construction plan. The plan would make the airport China's fourth-largest behind Beijing, Shanghai and Guangzhou. China has increased the limit for overseas investment in its airports to 49% from 35%, but an analyst was cited as saying foreign investors are mostly relegated to second-tier airports due to political considerations. Last December, private equity group Pacific Alliance led a consortium in a US$200 million deal to secure a 49% stake in HNA Airport Holdings, which owns Hainan Airport. | | |
China, Dalai representatives agree to more talks
Representatives from the Chinese government and envoys of the Dalai Lama have agreed to a second round of talks, AP reported, citing state media. This follows the first meeting between the groups on Sunday in the southern city of Shenzhen, and is an apparent sign of forward movement in easing tensions raised by violent riots in Tibet. No concrete progress resulting from the meeting has been reported. The Chinese side told the Dalai Lama's representatives in Shenzhen that the protests "had given rise to new obstacles for resuming contacts and consultations with the Dalai side." No time frame for the second round of talks was given in the report. |
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