China Stocks Fall; Bond Yields Decline

Mayank Mehta
22 Apr, 2010
New York City

Stocks in China region declined as investors fear more lending curbs to stem property prices. China completed the sale of 3-year bills that yielded 2.74% and raised $13 billion. Bank of Communications mortgage loan volume fell. ICBC completes $550 million deal to buy Thailand based lender ACL.

[R]8:00 PM Hong Kong, China – Stocks in China region declined as investors fear more lending curbs to stem property prices. China completed the sale of 3-year bills that yielded 2.74% and raised $13 billion. Bank of Communications mortgage loan volume fell. ICBC completes $550 million deal to buy Thailand based lender ACL.[/R]

Socks in China gyrated following international markets as companies report better than expected earnings.

The People’s Bank of China completed the sale of 90 billion yuan or $13.2 billion 3-year bills that yielded 2.74% lower than then 2.75% yield in the auction on April 8.

Hang Seng index in Hong Kong decreased 55.99 or 0.26% to 21,454.94 and CSI 300 index in China lower 35.14 or 1.09% to 3,201.54.

Shanghai Movers

Bank of Communications Co., Ltd fell 4.9% to 7.33 yuan after the lender made fewer mortgage loans in February and March as the government seeks to rein in lending and curb property speculation.

China Vanke Co., Ltd the developer fell 2.5% to 7.90 yuan.

China Construction Bank Corporation fell 2.9% to 5.19 yuan and the bank opened its first branch in Vietnam.

Industrial and Commercial Bank of China Limited fell 1.5% to 4.58 yuan after the lender said it had acquired 97.24% of Thailand''s smallest lender, ACL Bank for about $550 million after a tender.

Poly Real Estate Group Co., Ltd slipped 1.3% to 16.76 yuan after the company announced that it will pay the cash dividend of 0.09 yuan per share (after tax) to shareholders recorded on April 26.

Shanghai New Huang Pu Real Estate Co., Ltd slipped 4.6% to 13.11 yuan.

HK Movers

Angang Steel Company Limited fell 1.2% to HK$13.16 after the steelmaker is planning 9.5 billion yuan ($1.35 billion) in capital spending this year, company secretary Fu Jihui told reporters in Hong Kong yesterday.

China Minsheng Banking Corp., Ltd rose 0.7% to HK$8.22 after the privately owned bank had its shares upgraded “buy” in new coverage at BNP Paribas.

China Shipping Container Lines Company Limited fell 3.3% to HK$3.21 after the carrier of sea-cargo boxes posts loss on trade slump.

Jiangxi Copper Company Limited dropped 0.5% to HK$17.38 after the producer of the metal posted first quarter net profit soared 360% to 697 million yuan.