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China allows asset investment companies to conduct asset management business – TheChronicleHerald.ca

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4 years ago

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BEIJING (Reuters) – China has allowed asset investment companies (AIC) to conduct asset management business to invest in debt-to-equity assets as regulators seek to expand equity financing and reduce leverage in the economy.

China’s major state-owned banks including Industrial and Commercial Bank of China 1398.HK> 601398.SS> and China Construction Bank 0939.HK> 601939.SS> have set up AICs to conduct debt-to-equity swaps in the past two years, as the country aims to cut leverage especially in state-owned entities and shift risks from banks.

Such AICs can now set up investment plans in market-oriented debt-to-equity assets including convertible bonds, debt-to-equity special bonds, ordinary shares, preferred shares and debt-to-preferred shares, China Banking and Insurance Regulatory Commission (CBIRC) said in a notice on Tuesday.

AICs can raise fund through private fundraising from qualified investors include families with at least 5 million yuan ($705,000) in net asset or individuals with annual income no less than 600,000 yuan in the past three years, CBIRC said. Insurance fund and pension fund can also invest in such debt-to-equity investment plans through AICs, it added.

The move comes as China has been taking a series of measures to expand direct financing via capital markets. Policymakers are carefully balancing the need for liquidity to revive the economy hobbled by the coronavirus pandemic and risks of higher inflation and improving leverage.

Beijing also announced plans last Thursday to create a public market for real estate investment trusts (REITs), aiming to channel personal savings and private capital into infrastructure projects without overstretching already debt-laden local government.

(Reporting by Zhang Yan and Ryan Woo in Beijing; Editing by Lincoln Feast.)

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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7 days ago

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October 16, 2024

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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S&P/TSX up more than 200 points, U.S. markets also higher

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2 weeks ago

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October 11, 2024

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

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2 weeks ago

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October 10, 2024

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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