China Indexes Rebound; Russia Based EuroSibEnergo to List in HK

Nigel Thomas
15 Nov, 2010
New York City

Stocks in China region closed higher but in Hong Kong declined. Russia based OAO EuroSibEnergo is expected to complete its public offering in Hong Kong before the end of the year. The one-month yuan futures weakened but the currency is expected to gain against the dollar in the next three months.

[R]5:00 PM Hong Kong – Stocks in China region closed higher but in Hong Kong declined. Russia based OAO EuroSibEnergo is expected to complete its public offering in Hong Kong before the end of the year. The one-month yuan futures weakened but the currency is expected to gain against the dollar in the next three months.[/R]

Stocks in China region rebounded after dropping sharply on Friday and the yuan forwards showed a depreciation of the currency against the dollar for the first time in two months.

The Shanghai Composite index closed up 1% to 3,014.41 and the CSI Index added 07% to 3,314.89. Hang Seng Index declined 0.8% to or 195.40 to 24,027.20.

The indexes have been rallying for the last six weeks before the decline in Friday’s trading after inflation surpasses target 3%. Consumer prices surged 4.4% in October after rising at 3.6% in September.

The one month non-deliverable yuan futures traded at 6.6375 and the spot rate at 6.6370 according to the data available from Thomson/Reuters.

The currency has gained just over 2.65% after the peg with the dollar was scrapped on June 19 and is expected to appreciate at a measured pace.

OAO EuroSibEnergo is expected to complete its public offering in Hong Kong before the end of the year according to its majority shareholder Russian billionaire Oleg Deripaska.

The power utility company is controlled by the EN+ Group that also controls the United Co. Rusal, which recently raised $2.2 billion in Hong Kong.

Russian companies have been listing companies on the London Stock Exchange and are increasingly looking for capital outside the nation as the economy shrank the most since 1991.

Stock Movers

Banks participated in the rally but the ongoing worries related to real estate lending continued.

Agriculture Bank of China increased 1.1% to 2.75 yuan and Industrial & Commercial Bank of China Ltd soared 6.8% to 5 yuan.

Resource companied declined on the worries that China may tighten monetary policy. Aluminum Company of China declined 1.7% t 11.35 yuan and Jiangxi Copper fell 2.7% to 39.78 yuan.

Pharmaceutical companies closed higher.

Kangmei Pharmaceutical Co. soared 8.7% to 22.09 yuan and Kweichow Moutai Co added 3.5% to 183.69 yuan.