European banks stress tests to be published in July

European Union leaders on Thursday agreed that the results of stress tests on European banks will be published sometime in July. The results were not initially meant to be made public, but The EU leaders were then pressured by Spain's decision on Wednesday to make the results of stress tests on its own banks public to demonstrate solvency and leave behind rumors of banking problems. The tests will be conducted by national banking supervisors under the management of the Committee of European Banking Supervisors, starting with the EU's 25 largest institutions and in a second stage extend to more banks.

The German Finance Ministry is saying it won't publish information from banks that don't want it made public, under law it could not oblige banks to disclose the results of tests on them, though it would check how banking laws could be interpreted or changed. In the meantime it will rely on peer pressure rather than forcing reluctant lenders to disclose. Meanwhile, the Dutch Banking Association issued a strong statement opposing public disclosure and warning of bank runs.

In France, both President Nicolas Sarkozy and Finance Minister Christine Lagarde have indicated they support publishing results. But even there, the position looks a little vague. Spain's central bank, by contrast, is pressing ahead with publication of its stress tests and is suggesting it will extend this to smaller banks, including the country's embattled "caja" savings banks. Italy is saying it is firmly committed to publication.

The China 100 stock index rose 3.48 points or 0.40% on news about European banks stress tests going public. The Panda China Large Cap Stock Index gained 3.47 points or 0.35% to 990.19. The Tiger China Small & Mid Cap Stock Index fell 0.14% to close at 863.95 and the Dragon China Undervalued Stock Index won 1.06% to close at 758.29.

Synutra International Inc. (SYUT) [22.14, 1.08, +5.13%] shares are currently trading above the 50-day moving average of 22.01 and above the 200-day moving average of 16.66. China Direct Industries, Inc. (CDII) [1.28, 0.05, +4.07%] recently hosted the Gateway to China Business Roundtable Conference, an event designed to bring together a Chinese delegation, key international organizations and international business leaders to identify opportunities for inbound and outbound investments, partnerships, joint ventures and business opportunities between China, North America, and South America.

China Organic Agricultr (CNOA) [0.62, 0.02, +3.33%] announced last Monday that Counsel for the Company and counsel for the Plaintiff Class had entered into a Stipulation and Agreement of Settlement which has been submitted for approval by the Court. Under the terms of the settlement, eligible class members would receive a total of $300,000 in cash together with shares of its common stock having a value of $300,000 in exchange for a release of claims which class members have or may have against the Company, its directors, officers, affiliates, shareholders and agents, except claims arising out of or related to the settlement

Shares of GigaMedia Ltd. (GIGM) [2.20, 0.10, -4.35%] showed some extra weakness yesterday, trading down 2.1% to $2.29 while the broader market, as measured by the S&P 500 was up 0.13%. Approximately 246,000 shares traded hands yesterday vs. average 30-day volume of 585,000 shares. GigaMedia has fallen 26.6% since December 2009. American Lorain Corporation (ALN) [3.15, 0.13, -3.96%] an international processed snack foods and convenience foods manufacturer based in Shandong Province, China, last Monday secured a 15 million USD bank loan from a German development bank, Deutsche Investitions-und Entwicklungsgesellschaft MBH.

Yingli Green Energy Holding Co. Ltd. (YGE) a leading solar energy company in China, said it has no plans to produce thin-film solar cells in the near future considering the high costs. Xu Hongjian, deputy general manager of Yingli Energy Co., said that thin-film solar cell is uncompetitive if polycrystalline silicon prices stay low. Yingli Energy is a subsidiary company of Yingli Green Energy. Xu predicted that polycrystalline silicon prices would go further down with the release of more capacity.

CNOOC Limited (CEO) announced today that the Company has completed its acquisition of 24.5% participation interests in Block 15/34 from Devon Energy Corporation for a total consideration of 515 million USD. The transaction was signed on April 30, 2010. CNOOC has slashed the wholesale price of its #93 gasoline up to national emission control standard Guo-III to 7,460 yuan per metric ton [tone], which is about 100 yuan lower than the price offered by the other two oil majors, Sinopec and PetroChina. According to reports by the National Business Daily newspaper, CNOOC's unilateral action might trigger a systemic price reduction in the country due to the sluggish domestic demand and increasing competition in the market.

BlackBerry smartphones were made available to consumers in China for the first time on Friday, after Digital China Holdings Ltd. launched retail sales. The launch comes as China's mobile carriers compete to offer attractive smartphones to encourage users to upgrade and increase spending by using data services in addition to voice services and text messaging. Digital China will sell the smartphones without a mobile service contract, but the devices will be configured for China Mobile Ltd. (CHL), the world's biggest network operator by subscribers.