Weekly Gains in Shanghai, Hong Kong; Sinovel Wind Sets IPO Price

Chandrasekhar Atreya
07 Jan, 2011
New York City

Shanghai stock indexes rallied led by banks, developers and automakers. Sinovel Wind fixes the issue price of its public offering at the top end of the range to raise 9.5 billion yuan.

[R]5:00 PM Hong Kong, China – Shanghai stock indexes rallied led by banks, developers and automakers. Sinovel Wind fixes the issue price of its public offering at the top end of the range to raise 9.5 billion yuan.[/R]

Chinese stocks rallied for the first time in three days led by banks, developers and automakers, capping the benchmark index’s advance in the first week of 2011.

The Shanghai Composite Index gained 0.52% or 14.60 to 2,838.80 and the CSI 300 Index added 0.22% or 6.98 to close at 3,166.62. For the week the indexes gained 2.87% and 3.35% respectively.

The Hang Seng Index in Hong Kong drops 0.42% or 99.67 to 23,686.63 and gained 2.83% for the week.

Sinovel Wind fixed its initial public offer price at the top end of the range to raise 9.5 billion yuan in the first major IPO in 2011.

Sinovel Wind, which plans to sell 105.1 million shares in its IPO in Shanghai, set the offer price at 90 yuan a share versus an indicative range of 80 yuan to 90 yuan each, it said in its statement to the stock exchange on Wednesday.

Shanghai’s existing housing index rose for the fourth month in a row in December amid recovering sentiment among home buyers.

The index, which monitors price fluctuations of existing homes across the city, gained 8 or 0.33%, to 2,566, the Shanghai Existing House Index office said Wednesday.

Sales of luxury homes at above 50,000 yuan per square meter rose more than 20% in Shanghai in 2010, China Real Estate Information Corp said Wednesday.

A total of 537,800 square meters, or 2,342 units, of new luxury homes were sold for 36.04 billion yuan in 2010, versus 431,200 square meters, or 1,639 units, in 2009 for 29.71 billion yuan.

China said Wednesday it has met its basic goal of reducing energy consumption per unit of GDP by around 20% from 2005 levels by the end of 2010.

Zhang Ping, Director of the National Development and Reform Commission, China’s economic planning body, made these remarks at a meeting on energy, saying data is yet to be released.

China’s top state-owned assets supervisor aims to get at least 16 state-owned enterprises listed in 2011 to attract investors to pump money into these firms which now depend solely on government funds, a report said Wednesday.

The move is a part of the Chinese government’s efforts to reshuffle some of its state economic resources to market-driven channels so that it can better adjust its economic pattern and structure, seen as key to economic development of the country in the next five years.

SAIC Motor Corp, China’s largest car maker, said Wednesday it sold 3.58 million vehicles in 2010, a 31.48% gain on an annual basis.

The company said its production of vehicles also jumped 30.98% in 2010 from a year earlier to 3.62 million units.

The environment ministry of China has approved the $8.7 billion joint venture refinery by PetroChina Co and Venezuela’s state-run oil company Petroleos de Venezuela SA in south China’s Guangdong Province.

The Jieyang-based refinery project will be capable of processing 20 million tons of heavy oil annually, equivalent to around 400,000 barrels per day, according to the Ministry of Environmental Protection.

Stock Movers

ICBC, China’s largest listed lender, rose 3.4% to 4.30 yuan, while China Construction Bank Corp, the second largest gained 3.3% to 4.73 yuan. Industrial Bank Co surged 7.1% to 26.52 yuan.

China Vanke Co gained 0.6% to 8.89 yuan and Poly Real Estate group Co advanced 0.1% to 14.39 yuan.

Ping An Insurance gained 0.8% to 53.01 yuan and the insurer said it has no plans to conduct any refinancing exercise in the share market.

SAIC added 2.9% to 15.45 after announcing record vehicles sales in 2010. Anhui Jianghuai Automobile Co gained as much as 2% to 10.90 yuan after saying profit probably surged more than 200% last year.

Hainan Rubber surged 84% from its offer price of 11.01 yuan.

Jiangxi Copper Co fell 4.7% to 42.87 yuan while Tongling Nonferrous Metals Group Co slumped 6.2% to 32.50 yuan.