Bad Monday, Good Monday

Monday can be bad for some and good for others. First the bad news. Some Chinese companies might not benefit from a future bank lending spree. The People’s Bank of China announced credit controls over the weekend that mean companies in heavy polluting, high-energy consuming industries, as well as those in sectors facing overcapacity, won’t be receiving stimulus money. Executives at Mitsubishi Rayon are probably wishing they stayed in bed today. Beijing is stalling its bid for UK acrylics maker Lucite. Neither company is based in China but both have operations here, therefore the merger falls under China’s Anti-Monopoly Law. Now the good news. China is extending US$25 billion in aid and credit to Asean countries in a bid to help the region weather the global economic crisis. A US$10 billion investment fund will promote infrastructure development linking China with Asean nations, according to a statement published on the foreign ministry’s website. The CEO of luxury brand Coach said the company has plans to expand in China, which he views as a key market especially as Coach reduces its new store openings in North America