HK/China Banks Daily News Highlights 11 August 2010

• ICBC to take Hong Kong unit private for HK$10.8bn — ICBC (1398.HK) Tuesday offered to take its Hong Kong-listed unit private for around HKD10.8bn (US$1.4bn), in a move to streamline its operations as China's biggest lender by assets expands its Hong Kong operations. The deal to take ICBC Asia private values the bank at 2.14 times book value at the end of 2009, and was within the US$1bn-US$2bn range analysts had earlier expected ICBC to offer to pay minority shareholders. (WSJ)

• China Minsheng Banking 1H net profit up 20.23% at Rmb8.87bn — China Minsheng Bank (1988.HK) said Tuesday its first-half net profit rose 20.23% from a year earlier, boosted by higher net interest income. The medium-sized lender said its net profit for the six months ended 30 June was Rmb8.87bn, up from Rmb7.37bn in the corresponding period last year. (WSJ)
• China said to order banks to reclaim trust loans — CBRC ordered banks to transfer off-balance sheet loans onto their books and make provisions for those that may default, sources with knowledge of the situation said. The assets linked to wealth management products provided by trust companies must be shifted onto banks’ balance sheets by the end of 2011, the sources said, declining to be identified. Lenders should prepare provisions equal to 150% of potential losses, they said. (Business Standard)
• Central Huijin plans up to Rmb187.5bn bond issue — Central Huijin Investment Ltd. will sell its first batch of bonds as soon as this month, and aims to issue up to Rmb187.5bn worth of bonds by 2011 to help maintain its stakes in large state-controlled banks, a person familiar with the situation said Tuesday. (WSJ) 
• China housing prices post slower growth in July — Housing prices in major Chinese cities rose 10.3% YoY in July, down from 11.4% growth in June, the National Bureau of Statistics (NBS) said Tuesday. It was the third consecutive month that China's property prices rose at a slower pace and the lowest growth rate in six months. Property prices in the 70 large and medium-sized cities grew 12.4% YoY in May and 12.8% YoY in April, the highest since July 2005 when the government started to issue the data. (China Daily) 
• HKMA keeps base rate at 0.50% following Fed standing pat — The Hong Kong Monetary Authority (HKMA) kept its base rate at 0.50% Wednesday following the US Federal Open Market Committee's decision overnight to keep its policy rate steady. (DJ News)