GDP Growth Slows in China Agbank IPO

Chandrasekhar Atreya
15 Jul, 2010
New York City

Stocks in China region declined on mainland

[R]5:00 PM Hong Kong, China – Stocks in China region declined on mainland’s slower economic expansion. Crude oil processing in June grows at the slowest pace since October last. Agbank makes a lackluster debut in Shanghai. The securities regulator will probe the reported acidic waste water leak from Zijin’s copper smelter.[/R]

China’s stocks fluctuated after the GDP expansion slowed in the second quarter and inflation moderated to below the official target. Agricultural Bank of China Ltd rose on the first day of its trading.

The Hang Seng Index in Hong Kong slipped 1.48% or 305.19 to close at 20,255.62. CSI 300 Index lost 1.7% or 45.09 to close at 2,608.52.

China’s economy slowed from its blistering pace of growth in the previous quarters after the government took steps to ward off inflation and overheating, the government data showed on Thursday.

The nation’s GDP expanded at 10.3% in the second quarter compared to 11.9% expansion in the first quarter. Inflation cooled to 2.9% in June from 3.1% in May to drop below the government’s official target of 3%, according to the National Bureau of Statistics.

China’s crude oil processing in June grew at the slowest pace since October last year. Crude processing in June, increased by 11% from a year earlier to 35.3 million tons, or about 8.64 million barrels a day, according to data compiled by China Mainland Marketing Research Co.

Agricultural Bank of China Ltd rose as much as 2.2%, on its debut in Shanghai. President Zhang Yun, who went ahead with the IPO even as Chinese stocks had their biggest quarterly drop, in more than two years, said he was relatively satisfied.

Agricultural Bank is also raising $10.5 billion in Hong Kong. Those shares, priced at HK$3.20, start trading tomorrow.

Zijin Mining Group Co, which had earlier blamed heavy rains for the July 3 leak at its copper smelter near Shanghang, said the nation’s securities regulator will now investigate the pollution of the river in Fujian province.

The company will cooperate with China Securities Regulatory Commission, spokesman Zhao Jugang said by phone today.

Workers at a supplier to Honda Motor co in China have been striking from July 12, though the strike has not affected production at Honda’s plants in the nation.

“Workers at a Chinese factory of Atsumitec Co, a Honda Motor Co supplier, have been striking since July 12,” Honda spokeswoman Natsuno Asanuma said by phone from Tokyo.