Tue, Dec 31, 2013 - Page 15 News List

World Business Quick Take

Agencies

STOCKS

Sell order action planned

The Shanghai Stock Exchange is to take measures against brokerages including a UBS AG unit and China International Capital Corp (CICC, 中國國際金融) for sell orders that caused stocks to plunge on Dec. 20, a bourse official said. UBS Securities Co, CICC, Guotai Junan Securities Co (國泰君安證券) and Orient Securities Co (東方證券) face penalties for failing to exercise professional judgment and diligently review orders from Qualified Foreign Institutional Investor accounts controlled by UBS, Citigroup Inc, HSBC Holdings PLC and Martin Currie Investment Management Ltd, the Shanghai Securities News reported yesterday. The exchange official, who asked not to be identified because of the bourse’s rules, said steps were planned and confirmed the accuracy of the newspaper’s report, without commenting further.

BANKING

UK could sell rest of Lloyds

The British government could sell off all of its £18.4 billion (US$30.34) stake in the Lloyds banking group next year, the Daily Telegraph reported, citing unnamed sources. The newspaper reported that the entire government holding could be sold off in the next 12 months in a combination of retail and institutional offerings. “Post-results is when a further institutional offering would make most sense. After that, the thinking is an autumn sale, combining an institutional and a retail segment, is a realistic prospect,” a source was quoted as saying by the newspaper. The UK government has already sold off 6 percent of its stake in the partly nationalized bank, raising over £3.2 billion in September. The government currently holds around 33 percent of the bank.

BANKING

Indian risk increases

The risk to India’s banking industry rose in the six months through September as bad loans surged and profitability slumped, the central bank said. The average gross bad-loan ratio may increase to 4.6 percent of total lending by September next year in a “baseline scenario,” the Reserve Bank of India said in a financial stability report posted on its Web site yesterday. The ratio advanced to 4.2 percent as of Sept. 30 from 3.4 percent in March, the report showed. Sour loans at Indian lenders are rising as the South Asian nation’s economy slows and clearances for various infrastructure projects are delayed, the RBI said. The central bank predicts India’s economy will expand 5 percent in the 12 months through March 31, the same pace as the last fiscal year, which was the weakest in a decade.

AVIATION

China airline orders planes

China’s Zhejiang Loong Airlines (浙江長龍航空) has ordered 20 Airbus planes of the A320 series, firming up a deal made in September, Airbus announced in a statement on Sunday. The carrier which is based in Hangzhou, east China, had been given the green light for the transport of passengers when it signed the Memorandum of Understanding with Airbus at the 15th Aviation Expo China in Beijing. Zhejiang Loong Airlines’s order concerns 11 A320ceo and nine A320neo. The airline plans to offer services within a range of four hours around Hangzhou. Airbus says it had 2,523 firm orders of the aircraft at the end of last month. The company markets the A320 family, a single-aisle jetliner (composed of the A318, A319, A320 and A321) as “the world’s most eco-efficient single-aisle product line.”

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