Metals in China Rise; HK Lehman Bonds Settlment

123jump.com Staff
22 Jul, 2009
New York City

Mining and metals stocks surge in Shanghai. Retail investors have driven the demand for resource stocks in the last three months on the hopes of economic recovery. China Minsheng surge an approval to sell shares in Hong Kong. HK banks will pay sixty percent of principal of Lehman minibonds.

[R]7:00 PM Shanghai, 7:00 AM New York – Mining and metals stocks surge in Shanghai. Retail investors have driven the demand for resource stocks in the last three months on the hopes of economic recovery. China Minsheng surge an approval to sell shares in Hong Kong.[/R]

Stocks in Shanghai and in Hong Kong closed higher on the hopes that economic recovery in the second half will lift demand for commodities and energy. The stocks in the sector got another boost after steel companies in Taiwan and China plan a price increase in the next few months.

Hang Seng index in Hong Kong decreased 253.56 or 1.30% to 19,248.17 and CSI 300 index in China closed higher 67.09 or 1.90% to 3,606.92.

Sixty banks that sold Lehman minibonds agreed in a settlement with the Hong Kong Monetary Authority and Securities and Futures Commission to pay 60% of the principal to investors in two steps. The settlement marks the end of 10-month old disputes.

The bonds were sold to nearly 40,000 investors an 29,000 are eligible to receive the payment from banks.

Gainers & Losers

China Petroleum & Chemical Corp surged 10% to 13.38 yuan and 3.8% to HK$6.63 and PetroChina Co increased 5.3% to 15.45 yuan. China Shenhua Energy Co soared 4.5% to 36.67 yuan.

However, in Hong Kong trading, Xinjian Xinxin Mining Industry decreased 3.7% to HK$4.47 after the nickel producer said that first half results will be weaker than last year.

SGIS Songshan Company surged 10% to 6.15 yuan after the company plans to sell 570 million shares in a public offering. The news was first reported by Bloomberg News.

China Minsheng Banking Corp increased 2.6% to 8.40 yuan after regulators approved its plan to raise funds through a listing in Hong Kong.

Privately controlled and Beijing based China Everbright Bank Company plans to sell 5.2 billion shares priced at 2.20 yuan. The eleventh largest bank in China is looking to raise its capital base before it prepares to complete its initial public offering.

HBC in Hong Kong trading decreased 2.2% to HK$70.20 ahead of earnings on August 3.

Li Ning decreased 6.8% to HK$23.85 after the company chairman and chief executives sold stocks in the company.

Nanjing Panda Electronics Company decreased 5.1% to HK$1.68 after the company estimated first half loss between 40 million yuan and 50 million yuan.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 71.14 or 0.74% to 9,723.16, Hang Seng index in Hong Kong decreased 253.56 or 1.30% to 19,248.17 and CSI 300 index in China closed higher 67.09 or 1.90% to 3,606.92. ASX 200 index in Australia increased 17.80 or 0.44% to 4,068.50. The FTSE Bursa KL Composite index in Malaysia closed higher 14.00 or 1.23% to 1,148.70.

The Kospi Index in South Korea increased 5.05 or 0.34% to close at 1,494.04. SET index in Thailand closed lower 11.61 or 1.90% to 598.22 and JSE Index in Indonesia decreased 20.94 or 0.98% to 2,125.62. The Sensex index in India decreased 219.37 or 1.46% to 14,843.12.