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China Set to Double Overseas Investment

--S.J. Grand Managing Director, Corporate Finance, quoted in the The Australian newspaper on the state of overseas investment in China--

By Michael Sainsbury

CHINA will double the rate of its overseas investment to over half a trillion dollars for the five years to 2015 as it continues to broaden the scope of its targets, which now include Australian farms and property as well as mining companies.

China’s FDI Plunges Amid Grim Global Economy

--The outlook for FDI in China this year does not seem very optimistic due to deepening Euro zone debt crisis and the changes in China’s overseas funding policies for some industries, said the Ministry of Commerce in Beijing--

According to the Ministry of Commerce, FDI in China fell for the third straight month as the foreign investment registered a drop of 0.3% to USD 9.997 billion in January from a year earlier and a decline in spending of 12.7% in December after a contraction the previous month that was the first since 2009.

Alibaba Yahoo Deal Fails

--Yahoo’s tax-free deal to offload assets to partners Alibaba and Japan Yahoo has failed--

CIC Wary of EU Bond investment

--China Investment Corp (CIC) remains wary of investing in European government bonds despite a plea from Germany's chancellor, but will look for opportunities in infrastructure and real industrial projects--

China Stocks Decline On Moody's Europe Rating Cut

--Chinese stocks declined after Moody’s cut the debt ratings of six European nations, including Italy, Spain and Portugal, reigniting concern the region will struggle to contain its crisis--

BoCom to Raise $7.9 Billion through Private Placement

Bank of Communications (BoCom), China's fifth-largest bank by assets, plans to raise RMB 50 billion (USD 7.9 billion) through a private share placement to meet stricter bank capital requirements, Reuters reports.

Of the five largest banks in China, BoCom has the lowest capital adequacy ratio which makes it the most likely for the bank to issue new stock, analysts said. Raising funds through a private share placement would help ease pressure on the stock price from a massive new supply of shares.

Growth Concerns as China Imports Crumble

--Chinese exports fell and imports slid more than forecast in January as a weeklong holiday disrupted trade--

China cuts dividend payouts for state banks

--China's Central Huijin Investment Co. will cut the dividend payout ratio for state owned banks to help relieve capital strains--

Central Huijin Investment Ltd., a large state-backed shareholder in China’s four biggest lenders, ICBC, China Construction Bank, the Bank of China and the Agricultural Bank of China, said the lenders will lower their dividend payouts to shore up capital.

China's central bank pledges support for homebuyers

--Vows support for first-home buyers as crackdown on speculation threatens to trigger a property slump in China--

The central bank in China will increase support for construction of affordable housing and ensure that “loan demand from first-home families” is met, the People’s Bank of China said on its website yesterday.

A government clampdown aimed at make housing affordable is cooling market prices and driving down transactions as Europe’s sovereign-debt crisis puts a ceiling on export demand.

Google's business "Continues to Thrive" in China

China is the largest internet market by users. Amid surging demand for advertising services in China, the world’s most populous country, Google Inc.’s business is thriving in China, said Daniel Alegre, president of Google’s Asia-Pacific operations.

Google ran afoul of Chinese authorities in 2010 for refusing to abide by local censorship rules and shuttered its unfiltered search tools in China. Instead, the company began redirecting users to pages in Hong Kong.

China poised to launch junk bond market

--China may launch a junk-bond market as early as this month, could expand access to credit for smaller private firms--

The China Securities Regulatory Commission (CSRC) has met with executives at the country's key brokerage houses and told them it wants a market for high-yield bonds, the China Business News, a Shanghai-based daily, cited attendees at the meeting as saying.

WuXi and ShangPharma lead China's drug M&A targets

 --Companies looking to profit from world’s fastest growing drug market looking to China for takeover targets--

Chinese Government Vows Support for Small Companies with $2.4 Billion Fund

 Amid China’s slowing economic growth, the government has pledged to support small and micro-sized businesses with a 15 billion-yuan ($2.4 billion) fund. China’s economy grew 8.9 % in the last quarter of 2011, marking the slowest growth in 10 quarters, mainly due to a slowdown in exports and curbs on the property market. Expansion may cool to about 7.5% this quarter and 7.6% in the three months through June, until policies to spur growth kick in, according to Nomura Holdings Inc. 

Chinese finance system faces build up of risk

--Rising popularity of wealth management products squeezing Bank profitability and leading to a build-up of risk in the financial system---

China's December PMI stronger than expected

The purchasing managers’ index (PMI) in Chinarose to 50.5 from 50.3 in December, according to China’s statistics bureau and logistics federation. The stronger than expected rise in China’s manufacturing on increased new orders suggests the world’s second-biggest economy is standing up to both Europe’s debt crisis at the global level and a property slowdown at the domestic level.

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