Hang Seng Rebounds 1.7%; China Vanke Net Up 37%

Devan Biswas
08 Mar, 2011
New York City

Shanghai indexes declined as policy makers continue the debate about economic reforms and discussed plans to abolish one-child policy. Hong Kong stocks rose after sentiment improved. China Vanke said 2010 net surged 37%. Chinese navy prepares for a 4-day exercise with Pakistan.

[R]4:30 PM Hong Kong – Shanghai indexes declined as policy makers continue the debate about economic reforms and discussed plans to abolish one-child policy. Hong Kong stocks rose after sentiment improved. China Vanke said 2010 net surged 37%. Chinese navy prepares for a 4-day exercise with Pakistan.[/R]

The Shanghai Composite index fell 11.58 to 2,984.63 and the CSI 300 index decreased 0.3% to 3,324.16.

Hang Seng index increased 1.7% to 23,711.70 on a rally in financial stocks and resource stocks.

Crude oil futures eased in the early trading in Singapore and in Tokyo on the reports that Libyan leader Muammar Gaddafi has offered to step down and form an interim government on the condition of safe passage to his entourage and family.

The rebels in Benghazi and outside Tripoli rejected the offer according to sources contacted by 123jump.com.

China continues to monitor Internet messages and crack down on political activists as talks of Jasmine revolution gathers momentum in Hong Kong and in Tibet.

In a separate development Chinese naval fleet arrives in southern Pakistani port of Karachi for naval exercise scheduled every two years. The exercise dubbed as Aman 2011 is expected to last four days to March 12.

Chinese Military Attache Senior Colonel Wang Jiliang said the exercise is directed against piracy and terrorism and other “non-traditional security threats.”

India based defense analyst said that the purpose of the mission is to secure sea lane for Chinese ships and use Pakistani ports to surround India.

Stock Movers

Air China Ltd increased 0.2% to 12.10 yuan after the airliner said it agreed to purchase 5 Boeing 747-8 aircrafts for a total list price of abut $1.54 billion.

Agriculture Bank of China Ltd increased 1.2% to HK$4.06 and China Construction Bank increased 1.6% to HK$7.05.

China Vanke Co increased 1.3% to 8.46 yuan after it reported 2010 net increased 37% to 7.28 billion yuan. The company also said its profit in the quarter increased more than 68% as the sale of affordable apartments surged.

Cheung Kong closed up 1.9% to HK$125.90 after the company won a government tender to build a project in Yuen Long district.

Other property developers also closed higher. China Overseas Land & Investment Ltd increased 1.9% to HK$13.70 and China Resources Land Ltd increased 2.5% to HK$12.91.

The property developer said that the company will continue to focus on building apartment for middle class and will be able to weather government steps to cool the market.

Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. increased 2.8% to 84.60 yuan after the chairman of region’s National People’s Congress committee chairman said the company will drive the consolidation in the rare earth industry in the region.

Zhuhai Zhongfu Enterprise Co. declined 2% to 9.21 yuan after the bottlemaker denied rumors that the company is in discussion to sell a stake to Coca-Cola Co. or China Resources Holdings Co.

Zhaojin Mining soared 3.5% to HK$37.11 after the miner allocated 500 million yuan to acquire a gold mine according to its Chairman Lu Dongshang cited in the South China Morning Post.