China Stocks Reach New Low

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
20 May, 2010
New York City

Stocks in Hong Kong and Shanghai dropped on the weak global market sentiments and worries of more property market curbs. Bank of Beijing receives approval to issue 10 billion yuan of subordinated bonds. Industrial Bank plans to raise $2.6 billion through a rights issue.

[R]6:00 PM Hong Kong, China – Stocks in Hong Kong and Shanghai dropped on the weak global market sentiments and worries of more property market curbs. Bank of Beijing receives approval to issue 10 billion yuan of subordinated bonds. Industrial Bank plans to raise $2.6 billion through a rights issue.[/R]

Chinese stocks continue to fall as global markets remain weak and the benchmark Shanghai Composite Index to the lowest since April 30. The index lost 1.2% to drop to 2555.94 at the close today on concern the property curbs in China will hurt earnings growth.

The People’s Bank of China sold three-month bills at 1.4% along with three-year securities at a yield of 2.7%, reflecting the bank’s preference for longer-dated debt after the government tightened curbs on property lending.

Shanghai Exchange may introduce International Board by the year end.

The Securities and Exchange Commission may move quickly to set up circuit breakers for individual securities, said NYSE CEO Duncan Niederauer in Shanghai.

Shenzhen-based BYD Co will deliver 60 E6 electric cars to a taxi fleet operator and at least 500 more by the year end, said spokesman Paul Lin in a telephonic interview from this southern China city.

There are 40 E6 electric cars operating as taxis in Shenzhen.

China will not succumb to external pressures to float the yuan and will modify the currency based only on the economic situation, said Assistant Finance Minister Zhu Guangyao in Beijing today. He was speaking at a briefing prior to the May 24-25 Strategic & Economic Dialog in Beijing.

Hang Seng index in Hong Kong decreased 33.15 or 0.17% to 19,545.83, and CSI 300 index in China lower 36.15 or 1.31% to 2,726.02
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Shanghai Movers

Bank of Beijing Co., Ltd decreased 1.6% to 13.20 yuan after the bank said it obtained approval from its board of directors to issue no more than 10 billion yuan worth of subordinated bonds, reports China Business News, citing sources from the bank.

China Vanke Co., Ltd, the listed developer, dropped 2.5% to 6.80 yuan.

Industrial Bank Co., Ltd dropped 2.9% to 27.00 yuan after the bank plans to raise up to 18 billion yuan or $2.64 billion through a rights issue to help raise its capital adequacy ratio, the bank said on Thursday.

Poly Real Estate Group Co., Ltd fell 1.2% to 10.58 yuan.

Shanghai International Airport Co., Ltd dropped 1.7% to 12.41 yuan.

HK Movers

Denway Motors Limited, the carmaker, plunged 11.1% to HK$3.03.

I-CABLE Communications Limited dropped 0.8% to HK$1.21.

Tencent Holdings Limited fell 2.3% to HK$148.10.