China Stocks Close Lower; Ping An Earnings

Mayank Mehta
29 Apr, 2010
New York City

Stocks in Hong Kong and Shanghai closed lower on the worries that euro zone financial crisis may deepen. Banks reported higher profits. Ping An Insurance Co reported a surge in profit. China Shenhua Energy Co reported better than expected earnings after the close.

[R]7:00 PM Hong Kong, China – Stocks in Hong Kong and Shanghai closed lower on the worries that euro zone financial crisis may deepen. Banks reported higher profits. Ping An Insurance Co reported a surge in profit. China Shenhua Energy Co reported better than expected earnings after the close.[/R]

Stocks in Hong Kong and Shanghai closed lower on the mounting worries that euro zone financial crisis may spread to other nations in the region. Spain debt was downgraded a day after Greek debt was lowered to junk and Portugal debt was lowered to the lowest level of the investment grade.

Hang Seng index in Hong Kong decreased 170.48 or 0.81% to 20,778.92 and CSI 300 index in China lower 37.29 or 1.20% to 3,060.06.

Banks reported sharply higher profit as loan increase and Ping An reported a surge in profit. However the increase in insurer profit was limited after a near ten-fold profit rise a year ago.

Shanghai Movers

Bank of China Limited added 1.7% to 4.12 yuan after the lender said Swire Properties, which aims to raise up to $2.7 billion from a Hong Kong initial public offering has tapped Bank of China Group Investment for $100 million worth of shares. Bank of China Group Investment is an investment arm of Bank of China.

Bank of Communications Co declined 0.6% to HK$8.87 and after the close the bank disclosed first quarter net income increased to 10.5 billion yuan or 0.21 yuan per share compared to 7.99 billion yuan or 0.16 yuan per share.

The bank increased loan loss reserve to 2.6 billion yuan from 1.95 billion yuan a year ago quarter.

Bank of Ningbo Co., Ltd the lender advanced 2.2% to 13.21 yuan.

Beiqi Foton Motor Co., Ltd the commercial-vehicle maker decreased 0.1% to 20.59 yuan.

China CITIC Bank Corporation Limited rose 1.0% to 5.99 yuan after the banking unit of the nation’s investment company said first quarter profit climbed 28% as an economic recovery boosted demand for loans and fee-based services.

China CSSC Holdings Limited the unit of the nation’s shipbuilder rose 4.8% to 65.00 yuan.

China Life Insurance Company Limited the insurer rose 1.0% to 26.36 yuan.

China Merchants Bank Co., Ltd the lender added 2.0% to 14.10 yuan.

Industrial and Commercial Bank of China Limited rose 0.2% to 4.49 yuan after the commercial bank said first quarter net interest income rose 18.5% to 68.4 billion yuan from 57.7 billion yuan a year ago. Net profit in the quarter rose 18% to 41.55 billion yuan or 0.12 yuan per diluted share compared to net profit of 35.15 billion yuan or 0.11 yuan per share a year ago.

Shanghai Xinhua Media Co., Ltd fell 0.4% to 15.09 yuan after the stock was upgraded to “hold” from “sell” at Bank of China.

HK Movers

China Overseas Land & Investment Limited the controlled by the nation’s construction ministry added 1.7% to HK$15.08.

China Petroleum & Chemical Corporation closed unchanged at HK$6.27 after the oil refiner reported a 39.9% jumped in first-quarter profit.

China Shenhua Energy Co. declined 2.1% to HK$33.15 and the coal miner said first quarter net increased 16.5% to 9.2 billion yuan or 0.465 yuan a share compared to 7.94 billion yuan or 0.399 yuan a share.

Evergrande Real Estate Group Limited rose 0.9% to HK$3.12.

Hopson Development Holding Limited fell 0.5% to HK$10.52.

Ping An Insurance (Group) Co declined 2.3% to HK64.7 and after the second-largest insurer after the close said net income surged to 4.55 billion yuan from the revised 2.35 billion yuan.