 ANZ completes Shanghai bank sale, announces share buyback Sydney (AFP) Dec 18, 2017 - ANZ Bank completed the sale of its stake in Shanghai Rural Commercial Bank Monday and announced plans for a Aus$1.5 billion (US$1.15 billion) share buyback with the funds. The lender agreed to offload its 20 percent holding in the company earlier this year for Aus$1.84 billion, with Chinese shipping giant COSCO and Shanghai Sino-Poland Enterprise each taking 10 percent. The move is part of the Australia and New Zealand Banking Group simplifying its business, having announced last year the sale of its retail and wealth management arms in five Asian countries to Singapore's DBS. Last week, it decided to sell its life insurance arm to Swiss giant Zurich for Aus$2.85 billion. ANZ's chief financial officer Michelle Jablko said the money from the Shanghai sale would be returned to shareholders, with the bank to buy-back up to Aus$1.5 billion of stock on-market. "ANZ's strong capital position combined with the progress made in simplifying our business means we are now in a position to commence returning surplus capital to shareholders," she said. Jablko added that the divestment of non-core businesses "should provide ANZ with flexibility to consider further capital management initiatives in the future". ANZ shares were 1.31 percent higher at Aus$28.59 in morning trade. |
China opened a major economic planning conference on Monday as the country tries to pivot away from its no-holds-barred growth model.
The annual Central Economic Work Conference gives leaders the opportunity to review past economic policy and plan for 2018.
The pursuit of high growth propelled China to the number two spot on a list of the world's largest economies, but led to heavy pollution, rampant waste, and a mountain of debt.
President Xi Jinping has indicated the country would move in a new direction, telling the Communist Party Congress in October that China needs to shift from high growth to high quality development.
Implementing Xi's new approach will be the focus of the behind-closed-doors meeting, state news agency Xinhua said.
The "three tough battles" for 2018 will be curbing major risks, eradicating poverty and pollution control, Xinhua reported, repeating Xi's directions to the party congress.
One prong of that push -- tackling the country's noxious air pollution -- is already showing signs of dampening economic growth.
Last week, official data showed industrial output slowing in November, as authorities in some northern cities have forced steel factories and smelters to cut production, with some running at half capacity.
The industrial cuts and measures to switch the country to natural gas heating, have given the capital a rare string of blue sky days but some analysts forecast a meaningful impact on growth.
In a recent note, Julian Evans-Pritchard of Capital Economics forecast the aggressive crackdown on pollution "would shave just short of half a percentage point off gross domestic product growth" for the final quarter of this year and beginning of 2018.
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