China cargo carriers merge to form Asia’s largest freight company: China’s three largest airline cargo carriers will merge to form Asia’s largest freight transport company, according to a senior official at the Civil Aviation Administration of China. The three merging companies are Air China Cargo, China Cargo Airlines and China Southern Cargo, the official Xinhua said on Wednesday night, quoting deputy director Zhou Laizhen. No timeline or valuation of the merger was provided. — Reuters
US SEC and JPMorgan in talks to settle probe on product steering: JPMorgan Chase & Co is in talks with the US Securities and Exchange Commission to settle a probe by the agency on whether the bank inappropriately advised its private-banking clients toward its own investment products, the Wall Street Journal reported, citing people familiar with the matter. A settlement may come as early as this summer and could include a fine, the size of which was not known, WSJ said. — Reuters
US regulator freezes Chinese executive’s assets over suspicious Qihoo trades: The US securities regulator has obtained a court order to freeze the assets of a Chinese online gaming CEO over what it described as “suspicious” trading activity ahead of a US$10bil deal by US-listed Qihoo 360 Technology Co Ltd. The Securities and Exchange Commission said Guangzhou-based Luo Haijian made more than US$1 million trading options in Qihoo ahead of the news last week that the Chinese tech company had received a buyout offer at a 16.6% premium to its June 16 closing price. — Reuters
China’s ICBC says keen to join London gold price benchmark: Industrial and Commercial Bank of China Ltd, the world’s largest bank by assets, said it was interested in participating in the twice-daily London gold price benchmarking process. Asia is the largest consumer of gold but the London benchmarking system has not until recently included any banks from the region as members. — Reuters
India’s pension fund to start equity investments in July: Starting in July, India’s state-run pension and social security fund will invest about US$800 million in equities in the current fiscal year, Labour Minister Bandaru Dattatreya said, in a long-awaited move that may help finance an ambitious privatization programme. The more-than-US$100 billion Employees’ Provident Fund Organisation intends to place an initial 1% of its investments in exchange traded funds, increasing to 5% of the annual total in equity products by March 31. — Reuters
China to scrap constraint on bank lending: China is to abolish a limit on the amount of loans banks can grant, a liberalising step for the heavily-regulated banking sector which could make stimulus measures more effective. Banks will no longer be required to cap the amount of loans they make at 75% of the deposits they keep, known as the loan-to-deposit ratio, according to a statement released on the website of the State Council. — AFP
S. Korea unveils US$14 billion stimulus package to spur growth: South Korea announced a US$14 billion stimulus package to boost its troubled economy, hammered by the deadly MERS outbreak, which has dented consumer spending and business sentiment. In announcing the 15 trillion won programme – which follows a central bank interest rate cut to a record low this month – the finance ministry also slashed its growth outlook for this year to 3.1% from an earlier projection of 3.8%. It has also lowered its inflation outlook to 0.7%. — AFP
Top local news
AirAsia says EU ban on its flights from the Philippines lifted: The European Commission has lifted a ban on the Philippine unit of AirAsia Bhd offering services to European Union (EU) member countries, director Alfredo Yao said. With the lifting of the ban, the local AirAsia unit could launch a European service in the next three to five years, depending on market demand, he said. — Reuters
Modest net investment inflows: Malaysia is expected to see a modest increase in net investment inflows this year or maintain the level achieved last year, driven by sustained investor confidence. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the trend for the first quarter seemed to support the projection with a higher gross foreign direct investments of RM28.73 million from RM26.01 million a year earlier. “Last year, Malaysia’s net inflows were 7.4% lower at RM35.3 billion from RM38.2 billion in 2013 in line with the global downtrend,” he said. — Bernama
Texchem Resources gets further extension to make reasonable exit offer: The Singapore Exchange Securities Trading Ltd has granted a further extension to Texchem Resources Bhd
, the majority shareholder of Texchem-Pack Holdings (S) Ltd, to make a reasonable exit offer to the latter’s shareholders. Texchem Resources, which owns a 70.48% stake in Texchem-Pack Holdings, said it had until Aug 7 to make the exit offer. — Bernama
Medical glove makers’ valuations surge, but not due to MERS: Share valuations of world’s top medical glove makers surge, but not due to MERS: Share valuations of the four biggest medical glove makers in Malaysia – in the world, in fact – have soared to historic highs, but not because of the MERS outbreak. The median forward 12-month price-to-earnings ratio of Top Glove, Supermax, Kossan Rubber Industries and Hartalega has risen to 18, the highest ever, according to Thomson Reuters data. The figures also show their combined revenue is expected to grow 20% in 2015, the most in five years. — Reuters
Gabungan AQRS positive on transformation plan: Gabungan AQRS Bhd is optimistic its transformation plan that began two years ago would crystalise from 2016 onwards. Executive director Datuk Azizan Jaafar said the contractor-cum-property developer, once with a small portfolio, now has managed to secure an orderbook of RM3.3bil. This is in addition to unbilled projects with a gross development value of RM500mil. — Bernama
Salcon on the lookout for investments: Salcon Bhd will be sitting on cash pile of RM310mil from its divestments in China and is on the lookout for good investments. Executive director Datuk Eddy Leong Kok Wah said the company now had cash of RM270mil, after having completed the disposal of eight of nine water concessions in China. “The disposal of the last concession in Shantung should be resolved by the third quarter. We will then have further cash of RM40mil,” Leong said. — Bernama
Fernandes focuses on repairing financial damage: AirAsia Bhd boss Tan Sri Tony Fernandes has told staff and analysts he will spend more time working on the budget airline and put his other business and sporting interests to one side, after a report questioning the company’s accounts sent its share price tumbling. Fernandes has said his other work will take a back seat as he focuses on repairing the financial damage done to Asia’s largest low-cost airline, according to analysts and two AirAsia executives. Analysts covering the airline say Fernandes told them that he, and his long-term business partner Kamarudin Meranun, would become more hands on. — Reuters
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