Hong Kong Economy Expands 6.8%; Shanghai Gold Miners Rise

Devan Biswas
23 Feb, 2011
New York City

Stocks in China closed up but in Hong Kong fell on the weakness in property stocks. Hong Kong economy expanded at a faster than expected pace of 6.8% in 2010 and the government estimated economy to grow between 4% and 5% in 2011. Gold miners surge in Shanghai and Hong Kong property developers fell.

[R]5:00 PM Hong Kong – Stocks in China closed higher but in Hong Kong fell on the weakness in property stocks. Hong Kong economy expanded at a faster than expected pace of 6.8% in 2010 and the government estimated economy to grow between 4% and 5% in 2011. Gold miners surge in Shanghai and Hong Kong property developers fell.[/R]

Stocks in Shanghai increased but in Hong Kong declined. Middle East tension weighed in trading sentiment but investors focused on earnings of local companies and robust economic outlook in Asia.

Hong Kong economy expanded 6.8% in 2010, ahead of 6.5% government forecast. The economy is expected to grow between 4% and 5% in the current year.

The Shanghai Composite Index increased 7.12 or 0.25% to 2,862.63 and the Shenzhen Component Index increased 19.37 or 0.16% to 12,492.71.

Total trading volume on both exchanges fell to 244.46 billion yuan or $37 billion from 341 billion yuan.

Gold miners, property developers and resources linked stocks closed higher but oil refiners closed lower.

Gold futures rose 0.9% or $12.45 to close at $1,401.10 as tensions in the Middle East lifted the prices of precious metals.

Hang Seng index declined 83.91 or 0.4% to 22,907 after Hong Kong government talked of releasing more land for property developers.

Finance Secretary John Tsang in high annual budget speech said that government will release 18 sites for development in the fiscal year starting in April compared to 10 in the current fiscal year.

Stock Movers

Zijin Mining Group Co., the largest gold producer in China soared 9% to 8.51 yuan and Shandong Gold Mining Co increased 5.2% to 51.07 yuan.

Oil refiners and explorers closed lower. PetroChina declined 1.2% to 11.45 yuan and Sinopec, the largest oil refiners declined 2% to 8.56 yuan.

China Vanke Co rose 0.4% to 8.15 yuan.

Zhejiang Jinggong Science & Technology Co. increased 2.7% to 57 yuan after it confirmed plans to raise up to 460 million yuan in a private placement.

Risen Energy Co. increased 3.1% to 75.10 after 2010 profit increased 137% to 275.1 million yuan. The company also indicated it plans to offer 10 bonus shares and 5 yuan dividend for 10 shares held.

Nanning Department Store Co increased 1.9% to 10.17 yuan after 2010 net soared 240% to 97.6 million yuan.

Hong Kong property developers were on a roller-coaster after Hong Kong government plans to release more land for development. Henderson Land Development Co declined 3.4% and Sun Hung Kai Properties fell 0.7%.

Cathay Pacific declined 4.2% and extended its loss of more than 7% in the last two days. Shipping companies also closed lower. Orient Overseas declined 3% and Pacific Basin dropped 2.6%.