Chinese economy today

Now for the good news. Growth in the world’s third largest economy dipped by no more than a rounding error in the final quarter of 2007. If one of the global economy’s biggest engines is still firing – year-on-year growth in the fourth quarter came in at 11.2 per cent – can the rest of us fret a little less? Absolutely, say the optimists.

US Rate Cut May Stablise Markets, Says Yam  Hong Kong Monetary Authority Chief Executive, Joseph Yam on Wednesday suggested that the substantial cut in the US interest rate this week may calm the temporary panic in Hong Kong's financial market. He urged investors to look rationally into market developments. The US Federal Reserve reduced its benchmark interest rate by three quarters of a percent to 3.5% earlier this week, in order to boost confidence in the economy.

Asian stocks rebound after Fed rate cut

Asian stocks rebounded on Wednesday after the US Federal Reserve slashed interest rates by 75 basis points - and hinted clearly at more cuts to come – in a bid to arrest the deterioration in the US economy and stem a wave of selling in world stock markets. The move down to 3.5 per cent was the first unscheduled Fed rate cut since September 17 2001, and its largest single cut since August 1982. The central bank’s gambit prompted a rebound in European stocks on Tuesday but did not prevent the S&P 500 from closing lower.

Hong Kong Company Registrations Hit Record High  The Hong Kong government has announced that the number of new local companies registered last year hit a record high of 100,761 - up 22.92% on 2006. Companies Registry statistics released at the weekend show that 748 new overseas companies established a place of business in Hong Kong and registered under the Companies Ordinance last year, up 23.03% on 2006.

Bank of China sheds 4.14% on writedown talk

Bank of China Ltd, which has the largest subprime-related holdings among Asian banks, fell yesterday after BNP Paribas SA said it may have to write down the value of overseas securities by 35 billion yuan. The bank, China's third largest, fell 4.14 percent to 6.25 yuan in Shanghai, while its H shares closed down 6.39 percent to HK$3.37. Larger rivals Industrial and Commercial Bank of China Ltd and Construction Bank Corp also declined. ICBC fell 3.82 percent to 7.56 yuan in Shanghai yesterday. And Construction Bank slipped 4.14 percent to 9.02 yuan.

European IPO Markets Prove Resilient Despite Uncertainty  The Initial Public Offerings (IPO) markets remained strong in 2007, despite market volatility in the fourth quarter of 2007 which saw a 21% fall in activity compared to the same period of 2006, according to PricewaterhouseCoopers. The firm’s latest quarterly IPO Watch Europe survey, which tracks the volume and value of IPOs on Europe’s main stock exchanges, showed that in the October to December period there were 227 IPOs on European markets compared to 288 in the fourth quarter of 2006.

Merrill Lynch Gets $6.6 Billion From Kuwait Merrill Lynch & Co., the U.S. bank battered by subprime mortgages losses, raised $6.6 billion by selling preferred shares to a group including the Kuwaiti Investment Authority and Japan's Mizuho Financial Group Inc. The group also includes the Korean Investment Corp. and clients of U.S. money managers TPG-Axon Capital and T. Rowe Price Associates Inc., Merrill said in a statement today. The mandatory convertible securities carry a 9 percent annual dividend and a 17 percent conversion premium. The investors won't have a say in how Merrill is run, the bank said.

VTB obtains a license to open its branch in China On 28 December 2007, VTB Bank became the first bank in Russia to get the banking license in the People’s Republic of China. VTB Branch in Shanghai is to be opened in January 2008.