China Mobile to Get 4G License in Dec
China Mobile Ltd (NYSE: CHL, HKG: 0941) will likely be licensed to offer TD-LTE service, the equivalent of 4G technology in China, in December 2012 and strengthen its competitiveness in this regard in early 2014, according to Credit Suisse. That means China Unicom Ltd's (NYSE: CHU, SHA: 600050, HKG: 0762) advantage over China Mobile will likely last for another two years. China Mobile is building TD-LTE networks in Shanghai, Xiamen and Nanjing.
Sinopec Plans ¥20b Bond Issuance
Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) said it plans to issue ¥20 billion worth of corporate bonds at the Shanghai Stock Exchange in March, without revealing how the money will be used.
Huaneng Power Gets Approval for ¥2.4b Coal Project
Huaneng Power International Inc (NYSE: HNP, SHA: 600011, HKG: 0902), China's largest electricity producer, said a coal transport project in which it owns a 60% stake has been given regulatory approval. The Shantou, Guangdong province-based project is estimated to cost a total ¥2.44 billion.
Lenovo Posts Big Earnings, Settles Suit with Cybersitter
Lenovo Group Ltd (HKG: 0992), China's biggest personal computer maker, posted $8.37 billion in revenues and $153 million in net profits for the three months through December 2011, up 44.1% and 54% year on year respectively. Cellphone sales in China - which surged 159% to $565 million - was a big driver of the record-setting performance. Separately, Lenovo and other computer makers settled a lawsuit brought by Cybersitter LLC, a California-based software developer, Bloomberg reported, citing a Cybersitter filing to a US court. Cybersitter had claimed the Green Dam software installed on personal computers in China infringed its copyright. Terms of the settlement were not disclosed.
Ping An to Raise ¥26b to Improve Solvency and ROE
Ping An Insurance Group Co of China (SHA: 601318, HKG: 2318), the nation's second biggest insurer, said its board has approved a plan to raise ¥26 billion to shore up capital in the next three to five years. The money is expected to help the company boost its solvency by 24 percentage points and retain its return on equity between 15% and 20% in the years to come, Ping An chief actuary Yao Bo said.
Shanghai Pharm Spends $80m Expanding in Northern China
Shanghai Pharmaceuticals Holding Co (SHA: 601607, HKG: 2607), China's second biggest drug distributor, said it has spent $80 million setting up an investment firm in Beijing to explore the market in northern China. Shanghai Pharmaceutical's revenue from the Beijing region exceeded ¥10 billion in 2011.
Shanghai M&E to Take Over Goss Int'l
Shanghai Mechanical & Electrical Industry Co (SHA: 600835) said it plans to purchase 100% of Goss International, a US printer maker, for ¥571 million from Shanghai Electric Co (SHA: 601727, HKG: 2727), which bought out Goss for $1.5 billion in 2010. Shanghai Electric also owns a 47.28% stake in Shanghai Mechanical and Electrical.
Longfor Properties Jan Contract Value Down 56%
Longfor Properties Co (HKG: 0960), a Beijing-based developer, said it sold ¥1.18 billion worth of properties in January, down 55.5% from a year earlier. The weeklong Chinese New Year holiday was blamed for the sharp decline. It did not offer floor space sales figures.
$1 = ¥6.3