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Fuel Price Cuts Deal Blow to PetroChina, Sinopec
PetroChina Co (NYSE: PTR, SHA: 601857, HKG: 0857) and Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386), the nation's top oil explorer and refiner, is set to suffer greater losses from processing crude oil after the government cut fuel prices for the first time since October. Maximum gasoline and diesel prices have been reduced by ¥330 and ¥310 respectively per ton by the National Development and Reform Commission.
China Unicom Said to Cut 3G Minimum Charges
China Unicom Ltd's (NYSE: CHU, SHA: 600050, HKG: 0762) revenue from 3G services is expected to total ¥70 billion this year, up significantly from ¥40 billion in 2011, vice president Shao Guanglu said. The number of its 3G service subscribers is expected to grow from almost 49 million as of the end of March to 90 million by the end of 2012. Separately, the company is planning to lower its fees for its entry-level 3G monthly plan to ¥20, and the new package will probably be available next week, an unnamed China Unicom employee said. China Unicom's 3G monthly charge was ¥186 during the trial stage and was later slashed to ¥96 when the service turned official and is now currently priced at ¥36.
CNOOC Begins Deepwater Drilling
CNOOC Ltd (NYSE: CEO, HKG: 0883), China's biggest offshore energy explorer, has started drilling oil from a ¥5 billion rig in the South China Sea, the nation's first deepwater oil rig. The South China Sea is estimated to hold 23 billion to 30 billion tons of petroleum reserves and 16 trillion m3 of gas reserves, or one-third of China's total oil and gas resources. Of the one-third, 70% is hidden in deepwater areas.
51jobs Q1 Net Profit Rises 31%
51job Inc (Nasdaq: JOBS), China's top online human resource service provider, posted ¥380.8 million in revenues and ¥120.5 million in net profits for Q1 2012, up 17.3% and 31.5% year on year respectively as demand for its service remained strong. It expected its revenue to decline slightly in Q2, ranging between ¥360 million and ¥375 million.
BoComm Plans ¥56.6b Rights Offer
Bank of Communications Co (SHA: 601328, HKG: 3328), China's fifth largest lender, said its board has given the nod to a private placement and the plan, which is still pending regulatory approval, is expected to be completed in Shanghai and Hong Kong by the end of 1H 2012. The private placement, aimed at raising ¥56.6 billion, is expected to increase its core capital adequacy ratio by 1.8 percentage points to 11.3%, the highest of all state-owned lenders.
$1 = ¥6.3
@2011 China Economy @ The China Perspective.
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