Genting sells stake in The Star Entertainment
SYDNEY • Malaysian tourism and gambling conglomerate Genting Group said yesterday it had sold its 5.6 per cent stake in Australian casino operator The Star Entertainment Group for A$235.2 million (S$250.8 million).
Genting said it sold 46.4 million shares in The Star at A$5.07 in a block trade, giving it a net gain of US$67.5 million (S$92.7 million) on its investment.
It said in a statement it sold the shares to realise a profit and would use the proceeds as general working capital and capital expenditure for the group. Investment bank UBS conducted the block trade which left it with no remaining stake in The Star, it said.
Fitch gives China A-plus despite worries
BEIJING • Fitch Ratings warned yesterday that China's growing debt could trigger "economic and financial shocks", but said it will maintain the country's A-plus rating with a stable outlook despite its concerns.
The announcement follows Moody's shock decision in May to downgrade the world's second-largest economy for the first time in almost three decades on concerns over its ballooning credit and slowing growth.
While China's external finances were robust and near-term growth prospects "favourable", Fitch said "large and rising debt levels" in its non-financial sector were a significant risk.
Debt-fuelled investment in infrastructure and property has underpinned China's rapid growth, but there are widespread concerns that years of freewheeling credit could lead to a financial crisis with global implications.
Beijing has been clamping down on bank lending and real estate purchases, but those efforts are complicated by the government's determination to meet its full-year growth target of around 6.5 per cent.