Hang Seng Surges 1.7%, Shanghai Up on Energy Stocks

Devan Biswas
21 Mar, 2011
New York City

Stocks in Hong Kong and Shanghai increased after investors shrugged off the latest bank reserve tightening. China energy stocks gained after crude oil prices increased. Kweichow Moutai Co, China

[R]4:00 PM Hong Kong – Stocks in Hong Kong and Shanghai increased after investors shrugged off the latest bank reserve tightening. China energy stocks gained after crude oil prices increased. Kweichow Moutai Co, China’s largest liquor maker said 2010 net rose 17%.[/R]

Stocks in Shanghai and Hong Kong increased a day after the People’s Bank of China increased bank reserve requirements on Friday, third hike in the year.

Crude oil futures increased after U.S., UK and France carried out military attacks in Libya as Arab League and African Union oppose civilian casualties.

At least 100 civilian have been killed in Libya amidst a growing opposition to air strikes and crude oil futures prices increased to $103.10 a barrel.

Arab League General Secretary Amr Moussa noted, “What is happening in Libya differs from the aim of imposing a no-fly zone, and what we want is the protection of civilians and not the bombardment of more civilians.”

The Shanghai Composite Index increased 0.1% to 2,909.14 and CSI 300 index decreased 0.3% to 3,207.11.

Hang Seng index rose 384.99 or 1.7% to 22,685.22 and trading volume decreased to HK$74.20 billion from HK$88.89 billion on Friday.

Stock Movers

China Resources Power Holding Co Ltd declined 1.4% in Hong Kong trading after 2010 annual declined 7.8%.

Dongfang Electric Corp increased 1.2% to 29.23 yuan after the company guided no decline in nuclear products related sale of equipment.

Foxconn International in Hong Kong trading increased 5.2% to HK$5.02 after the company said it has agreed to sell its unit to its parent company for 463.3 million yuan.

Guangzhu Iron and Steel Co. declined 1.9% to 6.71 yuan after the steelmaker reported a net annual loss in 2010 of 97.9 million yuan compared to net income of 37 million yuan in 2009.

Mainland China based developers increased in Hong Kong trading. China Resources Land increased 3.9% to HK$13.36 and China Overseas Land increased 3.8% to HK$14.64.

PetroChina Co. increased 1.6% to 11.71 yuan after the company and Saudi Arabian Oil Co. agreed to build a refinery in Yunan province in China. The statement from Aramco on its website noted the refinery with a capacity of 200,000 barrels a day but the start date was not specified.

China is looking to expand its refining capacity by one third to 12 million barrels a day by 2015 according to private estimates.

Kweichow Moutai Co declined 2.1% to 187.13 yuan after its annual net increased 17% from a year ago to 5.05 billion yuan.

Yunnan Green-Land Biological Technology Co. dropped 10% to 20.70 yuan after its Chairman He Xuekui was arrested on sales irregularities. The company confirmed in a statement that the chairman has resigned.