China DealBook
A Newsletter on Deal Making in China

By: ChinaDesk | September 24, 2016

A Newsletter on Deal Making in China

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Deal News


Sony unit, Dalian Wanda in tie-up to tap China’s huge movie market

Chinese conglomerate Dalian Wanda Group will market Sony Pictures' films and co-finance some upcoming movie releases of Sony Corp's film unit in China, which is forecast to become the world's top movie market as soon as next year.

Wanda said in a statement on its website the tie-up would use its consumer-facing infrastructure to bolster Sony Pictures' presence in China.The alliance will help Wanda extend its Hollywood footprint and further Wang's goal of making the group a global entertainment powerhouse. Sony will benefit from smoother distribution and playback of its films in China and Wanda will be able to further integrate into the content development side of the business.

Xinhuanet.com Gets Green Light for IPO

Chinese securities regulators have approved a request by Xinhuanet.com, the website of China’s official news agency, for an initial public offering on the Shanghai stock exchange, the China Securities Regulatory Commission said late Friday. Xinhuanet.

China firm hit by new forgery claims in AC Milan deal

The Chinese consortium that agreed to buy AC Milan in a multimillion dollar deal this summer has been hit with new forgery claims, local media said on Friday.

China Molybdenum in race to pick 24% Tenke mine stake from Lundin

China Molybdenum Co. is among companies that have held talks with Lundin Mining Corp. about acquiring Lundin’s minority stake in the Tenke Fungurume cobalt mine, people familiar with the matter said.

Li Ka-Shing could face regulatory snag on National Grid deal: sources

Hong Kong billionaire Li Ka-Shing is likely to face significant regulatory hurdles if he bids for a stake in National Grid's British gas networks, banking and industry sources said, because of similar assets he already owns.


China’s largest P2P lender Lufax taps four banks for Hong Kong IPO: sources

China's biggest peer-to-peer lending platform backed by Ping An Insurance, is in talks with four investment banks about taking leading roles in its planned Hong Kong IPO. The initial public offering could raise $5 billion.


Brookfield-led group to buy stake in Petrobras natgas pipeline

Brazil's state-owned oil producer Petrobras agreed to sell 90 percent of a natural gas pipeline unit to a group led by Canada's Brookfield Asset Management Inc for $5.2 billion. The investor group includes two sovereign wealth funds, China's CIC Capital Corp and Singapore's GIC Private Ltd.


Deal focus: Yao takes the fight to China

Yao Ming-backed PE firm will grow the reach of kickboxing by emphasizing similarities to Chinese fighting styles. Kickboxing champions Gabriel Varga and Rico Verhoeven have both proved popular draws with Chinese crowds

JD Capital Leads $10M Investment In Chinese Medical Device Maker

Chinese private equity and venture capital firm JD Capital has led a US$10 million investment in Shenzhen Nuokang Medical Equipment Co., a developer and manufacturer of continuous non-invasive blood pressure measurement equipment.

Bank Regulators Join Investigation Into JPMorgan’s China Hiring

The Federal Reserve and the Office of the Comptroller of Currency have joined investigations into JPMorgan Chase & Co.’s hiring practices in China, according to people familiar with the matter.

China’s Wanda Group accused of funneling foreign money into Beverly Hills ballot measure

Unite Here Local 11, the Southern California chapter of a labor union that represents 270,000 workers across North America, accuses China’s Wanda Group of funneling cash to a campaign committee established by one of its U.S. subsidiaries to oppose an initiative in the November election.

Sinopec triple-header fuels G3 bond markets

Chinese state-owned oil giant’s latest dollar-denominated debt offering benefits from conducive market conditions after the Fed kept its interest rates unchanged.

SAFE supports real and reasonable overseas M&A

State Administration of Foreign Exchange (SAFE)supports Chinese enterprises’ “real and reasonable” overseas mergers and acquisitions, said a senior official of SAFE during the administration’s news briefing on Thursday.

 

Other Updates

 

 

Foreign Companies Still Trying to Break Into China’s Investment Funds Market

For overseas financial companies looking to break into China’s vast private investment funds market, Beijing’s recent vow to let them compete directly with local private funds still seems a distant promise. JPMorgan Chase & Co., for one, is not entering the fray anytime soon.


China gives green light for credit default swaps
China’s central bank has given the green light for credit default swaps to start trading in the country’s interbank markets for the first time, adding another financial tool to diversify credit risks and nurture the healthy growth of the capital markets.

China to help Mozambique establish industrial park
China will help Mozambique establish an industrial park as an effort to increase job opportunities in the southern African country, according to Chinese Ambassador Su Jian.

Friday Threat – China’s $2.1 Trillion Debt Bomb Is Ticking Away
Yes, China again.China's bad debt level soars to $2.1Tn. Debt to GDP now tied with Japan at 250%.China is responsible for 1/2 of total economic growth.

Fitch reveals the $2trillion black hole in China’s economy that heralds a lost decade
Bad debts in the Chinese banking system are ten times higher than officially admitted, and rescue costs could reach a third of GDP within two years if the authorities let the crisis fester, Fitch Ratings has warned.

The Bank of England is sounding the alarm on Chinese debt
Here is a chart from Nomura that shows how much of their income China’s companies put towards servicing their debts. The rate has doubled since the 2008 financial crisis:

Chinese insurers are the newest player
Chinese insurers are the latest investment pool to arrive in the U.S. as part of the global search for yield because U.S. is still a relative value compared to other countries.

China’s Huawei to start India smartphone production in October 2016
Chinese telecoms giant Huawei Technologies Co Ltd will start making smartphones in India next month, the company said on Friday, joining a wave of compatriots setting up in one of the world’s biggest mobile phone markets.

Xiaomi To Launch Its Crowdfunding Platform In India For Consumer Electronics Sector
Chinese smartphone and internet company, Xiaomi reportedly plans to bring its crowdfunding platform to India in near future. The platform will be available to local startups to raise funds in the consumer electronics sector.

KPMG announces 50 leading Fintech companies in China
KPMG China made its first announcement of 50 leading Fintech companies operating in China, as the country is fast becoming one of the leading Fintech markets globally and an important innovation center in the Fintech sector.

Canada must embrace Chinese investment to be a global player Add to …
Sandra Pupatello is a former Ontario minister of economic development and trade, and a strategic adviser at PwC for industry, global markets and the public sector. It looks like Canada is getting its mojo back in international affairs.

China spends more in the world than the world spends in China
For the first time, Chinese companies have invested more abroad than foreign companies have invested in China, data for 2015 showed this week. Overseas investment rose 18.3% to a record $145bn (£111bn), compared to $135.6bn of foreign investment.


A Newsletter on Deal Making in China