Russia’s largest mobile network operator said that sales of mobile handsets in the country rose an estimated 25 percent in terms of units last year, Reuters reported. Mobile TeleSystems (NYSE: MBT) said that handset sales rose to 34.8 million units, though the average selling price declined by 14 percent. These sales added up to USD5.2 billion, representing a 7 percent yearly increase. Fourth quarter sales grew by 18 percent year on year to 10.4 million units. Mobile TeleSystems held a 13.6 percent share of the Russian mobile phone market in 2010.

The benchmark Shanghai Composite Index rose by 0.2 percent on Thursday to 2827.71 as oil producers led the way on higher prices for crude. Crude oil futures rose to a two-year high on Wednesday, with light, sweet crude for February delivery rising 0.8 percent to USD91.86. Sinopec Corp rose 2 percent to RMB8.53 while PetroChina gained 1.3 percent to RMB11.39, on hopes for a price hike in domestic oil products. Expectations of an appreciation of the Chinese currency boosted airline stocks, as a higher renminbi would allow carriers to reduce their debt payments. Airline companies borrow in US dollars in order to purchase aircraft. China Southern Airlines rose 2.9 percent to RMB9.74 and Air China gained 1.6 percent to RMB13.09.

Despite efforts to reduce liquidity in the system, China’s banks have continued to lend aggressively in 2011. State media, citing unnamed sources, said that Chinese banks issued RMB480 to 500 billion (USD72.6 to USD75.7 billion) in the first week of January alone. Chinese banks in the month of December extended RMB480.7 billion (USD72.7 billion) in new loans. Chinese banks typically front-load lending in the first few months of the year. However, an immature bond market in China means that banks are the primary source for capital when a company wants to undertake an expansion. A Reuters analysis piece highlights the pressures facing China’s banking sector.