China

Chandrasekhar Atreya
13 Aug, 2010
New York City

Market indexes in China gained while in Hong Kong declined. China

[R]5:00 PM Hong Kong, China – Market indexes in China gained while in Hong Kong declined. China’s fiscal revenue in the first seven month increased 26% from a year earlier to 5.1 trillion yuan. Billionaire investor Li Ka-shing increased his stake in Hutchison Whampoa Ltd.[/R]

China’s stocks climbed, trimming the steepest weekly loss in more than a month. The stocks in Hong Kong however retreated despite the largest investment in Hutchison Whampoa Ltd by billionaire Li Ka-shing.

The Hang Seng Index in Hong Kong fell 0.16% or 34.14 to close at 21,071.57. The CSI 300 Index in China rallied 1.39% or 39.16 to close at 2,855.55. The benchmark index in China lost 1.9% this week, the most since the five days ended Jul 2.

China’s fiscal revenue jumped 25.7% to 5.1 trillion yuan compared to a year earlier in the first seven months of the year, the Ministry of Finance announced Wednesday.

More than two-thirds of respondents, mostly senior company executives, expressed their confidence in the country’s economy despite the recent economic moderation, according to a survey done by CPA Australia.

The accounting organization interviewed 340 members in China and found that 67.1% were upbeat on the nation’s economy. Besides 65.3% predicted that the economy in China will grow between 7% and 10% while the government’s target is 8%.

“These are the people making the decisions and advising major corporations and industries that drive China’s economy,” said Richard Petty, President of CPA Australia who was in Shanghai yesterday to release the survey report.

China’s third-largest automaker Dongfeng Motor Corp plans to spend 3 billion yuan in the next five years to speed up the process of commercialization of fuel-efficient and eco-friendly energy vehicles.

The blueprint released yesterday is released at the time when the car makers’ enthusiasm to build green cars is high and may attract 100 billion yuan in the next ten years.

Tongling Nonferrous Metals and Group Holdings Co and China Railway Construction Corp may invest as much as $3 billion in Ecuadorian copper project.

Production at the Corriente Copper Belt may start in 2013, Hu Guobin, Vice President of a venture set up by the two Chinese firms for the project, said in an interview. Copper concentrate output would be about 30,000 tons and double a year later, he said.

Hong Kong’s economy expanded at 6.5% in the second quarter from a year earlier, the government said today. The economy expanded 1.4% from the previous quarter.

Shanghai Movers

Baoshan Iron & Steel Co gained 1.5% after Citigroup Inc raised its rating on the company.

Zijin Mining added 3.3% to 6.35 yuan, Shandong Gold Mining Co gained 5% to 40.99 yuan and Aluminum Corp of China Ltd gained 1.5% to 10.29 yuan after saying it may raise the price of alumina.

Dongfeng Automobile Co gained 1.8% to 5.58 yuan after reporting a 20% rise in July sales from a year earlier.