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Top stories of the day -- China Stock Market -- Dec. 18

BEIJING
2015-12-18 11:16

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1. China is likely to face increasing pressure from capital outflow in December as the U.S. central bank hiked rates for the first time in nearly a decade, according to Xie Yaxuan, a senior analyst at China Merchants Securities. The analyst also said the pressure could be eased temporarily in January next year. His comments came after fresh data renewed worries about China's possible capital flight.

2. China has granted a 50 billion yuan (7.8 billion U.S. dollars) investment quota to Thailand under the Renminbi Qualified Foreign Institutional Investor (RQFII) pilot program, China's central bank said Thursday. The decision, part of deepening financial cooperation between the two countries, will offer diversified investment products for Thailand's investors, facilitate bilateral trade and investment while pushing China's capital market to open wider, the People's Bank of China said in a statement on its website.

3. Hedy Holding Co., Ltd (002027), a communication equipment maker, announced on Thursday morning that it had received approval from the China Securities Regulatory Commission (CSRC) over its plan on major assets restructuring. That indicates the scheme of Focus Media, a leading outdoor advertiser in China, to make back-door listing through Hedy Holding enters the formal implementation stage. According to Hedy Holding, the CSRC also approved it to issue no more than 439.37 million new shares via private placement to a group of companies, including Media Management Hong Kong Limited. The raised funds will be used to acquire relevant assets in the back-door listing. Focus Media used to be a Nasdaq-listed company, but it was privatized and de-listed in 2013.

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