Headlines

A bankruptcy filing against a Guangzhou-based unit of collapsed developer China Evergrande has been accepted by a mainland China court, according to a filing with the Hong Kong stock exchange, the South China Morning Post reported. A court in the southeastern Chinese city accepted a bankruptcy liquidation application filed against Guangzhou Kailong Real Estate, an indirect wholly owned subsidiary of the world’s most indebted developer, on August 9, the liquidators of Evergrande said in the filing on Monday.

Lusix, the synthetic diamond company founded by Benny Landa, is on the brink of filing for insolvency. The company has informed its creditors of its intention to do so, though the timing remains uncertain, YNetNews.com reported. Sources have told Calcalist that Lusix informed its shareholders last week that it urgently needs to raise $15 million to continue operations. Without this capital infusion, the company will likely become insolvent. Although some investors have considered providing additional funds, it is not believed that this has materialized.

The two largest Canadian railroad companies will shut down operations Thursday if no agreement is reached with their unionized workers, forcing industries to brace for billions of dollars in losses, Bloomberg News reported. Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. issued lockout notices to a union representing more than 9,000 employees at both companies, essentially starting a countdown for a nationwide work stoppage unless parties reach a last-minute deal.

China’s central bank said a meeting in Shanghai produced an agreement with the U.S. Treasury to appoint contact people to deal with any future “financial stress events,” Bloomberg News reported. The two sides also “exchanged lists of financial stability contacts” during the fifth meeting of the so-called Financial Working Group that was set up following Treasury Secretary Janet Yellen’s visit to China last year.

Chile’s economy contracted on a quarterly basis for the first time in a year, marking a significant downturn that bolsters the case for a resumption of interest rate cuts, Bloomberg News reported. Gross domestic product fell 0.6% in the second quarter from the prior three months, in line with the median forecast of analysts in a Bloomberg survey. From a year ago, it expanded 1.6%, the central bank reported on Monday. Chilean policymakers paused their easing cycle last month as they weighed near-term inflationary pressures against a downturn in the economic recovery.

Singapore will introduce new curbs on public housing purchases as its new prime minister seeks to tame years of price increases that threaten to become a political flashpoint for his ruling party in upcoming elections, Bloomberg News reported. The measures, which include a lower loan-to-value limit, are aimed at promoting a “stable and sustainable” market, according to a joint statement late Monday from the Ministry of National Development and the Housing & Development Board.

U.K. house hunters stepped up their search after the Bank of England’s first reduction in interest rates in over four years and Labour’s election win created “buyer buzz,” Rightmove Plc said, Bloomberg News reported. The online property portal said the number of buyers contacting estate agents to view houses for sale jumped 19% from a year ago since the BOE decision on Aug. 1, an acceleration from the 11% increase across the month of July. The number of sellers coming to market also rose by 5% compared to a year earlier.

Thailand’s key economic stimulus — almost $14 billion in cash payments to its citizens — will need further study to ensure compliance with the nation’s fiscal discipline law, newly appointed Prime Minister Paetongtarn Shinawatra said, Bloomberg News reported. The change in economic condition is prompting further assessment and reviews, Paetongtarn, 37, told reporters Sunday. She was responding to reports that her father Thaksin Shinawatra is demanding that the new government drop the Pheu Thai party’s flagship policy during the election campaign last year.

In a picturesque wine town about 100 kilometers (62 miles) from Frankfurt lies a hidden bunker that for decades was one of Germany’s best-kept secrets. Built in 1962, the cavernous structure housed alternative deutsche marks, should West Germany’s Cold War foes flood the market with counterfeit banknotes in a bid to trigger hyperinflation. In the end, the back-up currency wasn’t needed and was destroyed in 1988. Concern among Germans over the security of their money persists, however.

Canada's Alimentation Couche-Tard has sounded out Japan's Seven & i about a potential takeover, the two companies said on Monday, making the 7-Eleven owner the largest-ever Japanese target of a foreign buyout, Reuters reported. While the value of the offer has not been disclosed, the bid is the latest example of the growing interest in Japanese companies by Western investors, who have been drawn by the country's push for better governance.