10 Minute Market Digest

S'pore's China shares suffers fallout from HK's selldown
ASIAN bourses took a beating on Monday, as Hong Kong registered its biggest single one-day loss, after China decided to freeze a proposal to allow its citizens to buy Hong Kong shares directly.
What spooked sentiment were the four conditions put forward by Chinese Premier Wen Jiabao for the approval of the scheme to allow mainland citizens to buy Hong Kong shares which were so open-ended that it effectively put a freeze on the proposal.
This led to a furious selldown in Hong Kong by fund managers who have pushed up the Hang Seng Index by almost 55 per cent since mid-August, with their heavy purchases of H-shares - shares of China firms listed in Hong Kong - after the scheme was announced.

Citigroup CEO quits, bank sees US$11 billion write-off
CHARLES Prince resigned on Sunday as chairman and chief executive of Citigroup Inc, and the bank said it may suffer an US$11 billion (S$16 billion) write-down for subprime losses.
Robert Rubin, the former US Treasury Secretary, was named chairman, while Sir Win Bischoff, who runs Citigroup's European operations, was named acting chief executive.

SembCorp FX losses put hedging in spotlight
FOREIGN exchange losses by rig builders SembCorp Marine and Labroy Marine have put the spotlight on hedging practices and raised questions as to whether Singapore companies are adequately protected against a falling US dollar.
SembMarine, the world's second-largest builder of offshore oil rigs, said last week $220 million had been lost due to alleged unauthorised trades by its former finance chief. It has denied liability for the losses.
Labroy said its unrealised losses of S$209 million stemmed from contracts to sell euros and buy dollars after clinching a 284 million euro contract in March to build two vessels.

Chinese inflation to gather steam again
CHINA is far from winning its battle against inflation and prices may resume their rapid climb in coming months after a brief respite, two separate research reports said on Monday.
China's annual consumer price inflation in 2008 could leap to 7.3 per cent, its highest level in more than a decade, from 4.7 per cent this year, a Tsinghua University economic think-tank said in remarks published on Monday.