Investment Daily Note

Chinese Premier Li Keqiang said, during a session at Summer Davos in Dalian, that China would allow foreign central banks to participate directly in the Chinese inter-bank forex market, maintain astable renminbi exchange rate. Offshore renminbi surged 789 basis points against the U.S. dollar yesterday, a record single-day increase, which substantially narrowed the spread with the onshore rate. Market participants believe the renminbi surge was related to intervention by the Chinese central bank.

Fosun Intl (656.HK, HK$13.42)proposed a rights issue to raise not more than HK$11.7bn for general corporate purpose, including acquisitions of banks or insurers and loan repayment. The rights issue price is HK$13.42, same as yesterday closing price (with no discount). Also, the rights issue ratio is 56 rights shares for 500 existing shares, small investors may end up with odd lots.