China Lifts Bank Reserves; Swire Properties IPO

Mayank Mehta
03 May, 2010
New York City

Stocks in Hong Kong closed lower after commodities declined and China raised bank reserve ratios. ICBC plans to start fund raising of as much as $12 billion next week. Swire Properties in a Hong Kong listing plans to raise $2.7 billion.

[R]8:00 PM Hong Kong, China – Stocks in Hong Kong closed lower after commodities declined and China raised bank reserve ratios. ICBC plans to start fund raising of as much as $12 billion next week. Swire Properties in a Hong Kong listing plans to raise $2.7 billion.[/R]

The benchmark index in Hong Kong closed lower and Shanghai markets were closed. People’s Bank of China increased reserve ratios for banks to cool property market.

Hang Seng index in Hong Kong decreased 297.23 or 1.41% to 20,811.36

The People’s Bank of China increased reserve ratio by 50 basis points to 16.5% and for smaller banks to 14.5% according to a latest release on its Web site.

China has focused on limiting credit flow to the property market rather increase rates that may affect the entire economy.

Hanlong Mining Investment Pty Ltd plans to invest as much A$5 billion or $4.6 billion in Australian mining assets. In a regulatory filing by Moly Mines Ltd, with a 55% stake controlled by the company plans to invest in materials that help steel making including molybdenum and manganese.

HK Movers

BYD Company Limited the maker of plug-in hybrid vehicles and rechargeable batteries added 1.4% to HK$71.55.

Hengdeli Holdings Limited advanced 2.1% to HK$3.34 after the retail partner of Swatch Group AG in China said 2010 sales growth may be the fastest in three years as it expands market share and Chinese consumers buy luxury watches and jewelry.

Swire Pacific Limited fell 0.6% to HK$87.40 after the Swire Properties Ltd., the property unit of blue-chip conglomerate is seeking to raise up to HK$20.8 billion or $2.67 billion by offering 910 million new shares in its Hong Kong initial public offering.

Swire Properties Ltd said in a statement it set a preliminary price range per share between HK$20.75 and HK$22.90 for the offering.