China Indexes Advance; Disney Theme Park in Shanghai

Marcus Jacob
05 Nov, 2010
New York City

Stocks in China region indexes gained tracking the increase in world markets. Resource stocks and commodities prices increased on the prospects of further decline in the U.S. dollar. Contractors and builders surged in Shanghai after Disney and China agreed to build a theme park.

[R]7:00 PM Hong Kong – Stocks in China region indexes gained tracking the increase in world markets. Resource stocks and commodities prices increased on the prospects of further decline in the U.S. dollar. Contractors and builders surged in Shanghai after Disney and China agreed to build a theme park.[/R]

Indexes in China region closed higher tracking the gains in world markets. Commodities prices and resource stocks led the advance in trading.

CSI 300 Index increased 40.29 or 1.2% to 3,520 and Hang Seng Index increased 341.19 to 24,876.80. For the week the Hong Kong index gained nearly 2%.

Stocks of property developers and infrastructure developers increased after China controlled company and Walt Disney agreed to build a theme park.

Shanghai Pudong Road & Bridge Construction Co. soared daily limit of 10% and Shanghai Construction Co. increased 9%. Shanghai Trade Zone Development Co surged the daily limit of 10%.

China joined the chorus of cautious comments from central bankers around the world after the U.S. Federal Reserve effectively “printed money.”

Vice Foreign Minister Cui Tiankai at press gathering today in Beijing said that global economic growth and recovery may be hurt “unless someone gives us an explanation.” The comments were directed at the U.S. central bankers.

China, Germany, Thailand, South Korea and Philippines have publicly worried that printing of new money in the world’s largest economy will lead to higher speculative flows in the emerging markets and may hamper the global economic recovery.

Officials in the euro zone are also worried that the rise in the euro and the fall in the dollar may hurt exports and keep unemployment elevated.

Hang Lung Properties Ltd declined 6.5% to HK$37.70 after the company completed the offering of HK$111 billion and to fund its expansion in China.

Walt Disney Co. and China based Shanghai Shendi Group Co. signed a contract to build a Disney theme park according to the statement issued by Walt Disney. The park is expected to cost as much as 25 billion yen or $3.7 billion and will be located in Pudong district.

The park is expected to be built in 20-square-kilometer are according to the committee controlled by the Shanghai municipality.