Tue, May 12, 2015 page15

• World Business Quick Take

  • Agencies
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  INTERNET

  Baidu opens internal probe

  Chinese search engine giant Baidu (百度) yesterday said it has launched anti-corruption investigations into its own employees after reports three department heads were being probed. Baidu did not reveal any details of its inquiries, nor confirm how many were being investigated or their names. “Internal anti-corruption action creates a just and transparent working environment, and a sound environment for workers’ development,” the company said in a statement to reporters. Chinese Internet portal Sina (新浪) yesterday reported that Baidu was investigating three departmental directors. Baidu fired five executives in November last year for bribery and illicit appropriation and dismissed four of its employees for bribery in August 2012, according to media reports.

  MINING

  Baosteel project delayed

  A Chinese-led A$7.4 billion (US$5.8 billion) iron ore project in Western Australia looks to be the latest casualty of the price decline, with Wood Mackenzie Ltd estimating it is unlikely to begin output before 2020. “Mindful of the volatility in the iron ore market,” the partners in the Baosteel Group Corp-led West Pilbara iron ore mine, port and rail development, have deferred until late next year a decision on whether to proceed, Aurizon Holdings Ltd —one of the participants — said yesterday in a statement. A decision had previously been planned for early next year, Aurizon said. To deliver the initial capacity of 40 million tonnes a year the project requires the construction of 280km of heavy rail and a port facility at Anketell Point, Aurizon and Baosteel said on June 20 last year, when Chinese benchmark iron ore was trading at US$92.13 a tonne. It traded at US$61.40 a ton on Friday last week. “You are looking at a minimum of four years to do all of that, and that’s the best case scenario,” Sydney-based Wood Mackenzie analyst Andrew Hodge said by telephone. Under that timetable, the project would not begin production before 2020, Hodge said. Baosteel and Aurizon previously said first shipments were expected in 2017 or 2018.

  ELECTRONICS

  Toshiba’s value plunges

  Toshiba Corp yesterday lost US$2.8 billion in market value after the Japanese industrial and electronics group withdrew its earnings forecast pending an internal probe into improper accounting on infrastructure projects. Its shares fell 17 percent, the biggest drop since March 2011, to ￥403.3 in Tokyo. The company announced it was extending an accounting probe and withdrawing its earnings forecast for last fiscal year Friday last week, after trading had closed. Toshiba also said it may have to revise earnings from fiscal year 2013 and earlier. The company had projected net income of ￥120 billion (US$1 billion) on sales of ￥6.7 trillion in the year ended March.

  INVESTMENT

  Chinese futures top trade

  Chinese stock index futures have surpassed S&P 500 futures in turnover to become the world’s most traded equity futures as global investors expanded their exposure to the market. Turnover in the CSI300 futures contract expiring on Friday has soared in recent weeks, in step with surging shares in China. Daily volumes rose to 1.5 million contracts on Friday last week, according to Thomson Reuters data, exceeding the 1.4 million “e-mini” S&P 500 contracts traded on that day. Analysts predict the CSI 300 looks set to overtake futures contracts in other asset classes such as US Treasuries, the most heavily traded futures contract in the world for any asset type.
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