Thu, Jul 21, 2016 - Page 10 News List

World Business Quick Take



US takes aim at 1MDB

US federal prosecutors could file civil lawsuits as early as yesterday in a bid to seize assets purchased with money allegedly misappropriated from a Malaysian state investment company, the Wall Street Journal reported. The US Department of Justice’s Kleptocracy Asset Recovery Initiative is leading the potential asset seizure as it steps up a probe into people and institutions connected to 1Malaysia Development Berhad (1MDB), the report said, citing people it did not identify. It is not clear what assets will be confiscated but it is likely to include properties, the report said. The fund, whose advisory board was headed by Malaysian Prime Minister Najib Razak until it was dissolved recently, is embroiled in multiple global probes related to allegations of money laundering and embezzlement.


ASML forecast disappoints

ASML Holding NV, Europe’s largest semiconductor-equipment maker, gave a sales forecast that trailed analysts’ estimates, a sign customer investments in new machinery are yet to accelerate. Third-quarter revenue will be about 1.7 billion euros (US$1.87 billion), the Veldhoven, Netherlands-based company said in a statement yesterday. Analysts had predicted 1.74 billion euros on average. ASML’s second-quarter sales were 1.74 billion euros, while net income declined 4.3 percent to 354 million euros.


China Film Co plans IPO

China Film Co (中國電影公司), the nation’s largest movie distributor, is planning a 4.09 billion yuan (US$612.29 million) initial public offering (IPO) in what would be the biggest IPO in the country’s entertainment industry. The unit of state-owned China Film Group Corp (中國電影集團) plans to offer as many as 467 million shares to be listed on the Shanghai Stock Exchange, according to a filing yesterday. The company is to begin gauging investors’ interest from Friday through Monday next week and start the offering on Thursday next week. Proceeds are to be used for movie production and investments in cinemas, the company said.


ADIA announces gains drop

The Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds, said its long-term gains dropped last year. The fund’s 20-year annual rate of return slowed to 6.5 percent at the end of last year, from 7.4 percent in 2014, it said in its annual review. Over three decades, annual returns fell to 7.5 percent from 8.4 percent. The Abu Dhabi government will probably take billions of dollars out of ADIA to help finance the emirate’s budget amid a slump in oil prices, Fitch Ratings Ltd said in February. Assets will drop to US$475 billion at the end of this year, from an estimated US$502 billion at the end of 2014, Fitch said.


Foreign ownership eased

The government said it is exempt foreign makers of motorcycles and batteries from ownership limits in their manufacturing operations, revising a key industrial policy just as rulemakers consider similar measures for automakers. The amended rules governing foreign investment are to apply to foreign companies setting up in the free-trade zones of Shanghai, Tianjin, Guangdong and Fujian, the central government said in a statement on Tuesday. Manufacturers such as Yamaha Motor Co and Samsung SDI Co were previously required to partner with local companies and could own as much as 50 percent of joint ventures.

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