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THE NEWS WRAP: Major Chinese bank announces direct currency trades

Thursday, 9 May 2013 | By Andrew Sadauskas

China’s fifth-largest bank, the Bank of Communications, has announced that its Sydney-based subsidiary will begin offering direct currency trades from Australian dollars into the Chinese yuan from next year.


“Australia is taking a more important role in the world economy, especially the Asia Pacific region. With the currency agreement, the growth of trade between Australia and China will continue,” BoCom's Australian general manager, Yu Hongde, told The Wall Street Journal.


“In the very beginning the branch here dealt with clients mainly in the mining sector. Nowadays, we look to diversify, not only focusing on the mining sector but also in the energy sector, especially the clean-energy sector, and agriculture industry.”


Former Rich Lister Nathan Tinkler could be declared bankrupt


Corporate advisory firm BKK partners has filed a lawsuit against Tinkler Group in the Federal Court, along with a second action against Nathan Tinkler and his wife in the NSW Supreme Court, which could eventually see bankruptcy proceedings brought against the former billionaire.


Tinkler hired BKK in March last year to advise him on a failed takeover bid for Whitehaven Coal, with the firm now claiming to have been promised a retainer of $50,000 a month, of which it claims $220,000 was not paid.


“The retainer agreement was entered into by Nathan Tinkler on behalf of the Tinkler Group, as well as its affiliates and related parties, which includes Nathan Tinkler personally and his wife, Rebecca Tinkler, who we understand is the trustee of the Tinkler Family Trust,” Somerset Ryckmans partner Marc Ryckmans told Fairfax.


“If we are successful in obtaining a judgment against them, then BKK would be entitled to commence bankruptcy proceedings against Nathan Tinkler and his wife.”


Seven West announces it has hit bottom


Kerry Stokes-controlled media giant Seven West has announced it believes this financial year will mark the bottom of its recent declines in earnings performance.


The media company, which owns the Seven Network, Pacific Magazines, The West Australian newspaper and half of Yahoo!7, expects its earnings for the current financial year to be a few million short of last year’s net profit of $227 million.


“Even if advertising doesn't alter its present trends, we believe that financial year 2013 was the worst of it for our company on a net profit basis after tax,” Seven West chief executive Don Voelte said.




The Dow Jones Industrial Average is up 0.32% to 15,104.05. The Aussie dollar is down to US101.72 cents.