HK Stocks Gain 1%, Down 28% from Oct

123jump.com Staff
10 Mar, 2008
New York City

China''s trade surplus in February fell to $8.6 billion from $23.7 billion in 2007, a 63% decline. Difficult weather conditions played a key role in lowering production at many manufaturing plants across the country. Exports from China rose 6.5% to $87.4 billion and imports increased 35% to $78.8 billion. Exports to the U.S., second largest trading partner, fell 5% to $16.4 billion and imports from the U.S. surged 33% to $6.1 billion. The trade surplus with 27-nations EU rose 15% to $10billion.

[R]6:00AM New York, 6:00PM Hong Kong - China trade surplus declines to $8.55 billion in February. Producer Price Index for February increases 6.6%.[/R]

Hong Kong stocks reversed their earlier loss after investors returned to take advantage of lower stock prices. Hang Seng Index has lost more than 26% in the last five months of trading. China reported its first monthly trade surplus below $15 billion in the last two years.

Market Sentiment

In Hong Kong trading Hang Seng Index reversed a 2% slump in the morning session to gain 1% or 203.72 to 22,705.05, and the China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, declined 0.7% or 87.08 at 12,519.75.

Daily turnover on main board was HK$87 billion compared with HK$83 billion on Friday.

China trade surplus declines to $8.55 billion

Xinhua News Agency reported that the General Administration Custom reported today that China’s trade surplus fell to $8.5 brillion in February, two-third lower from a year ago on snowstorms in the southern China. In addition, the surplus is half of the January surplus $19.49 billion.

Exports rose 6.5% to $87.37 billion from $78.81 billion. The country’s trade volume in February grew 18.4% from a year earlier to $166 billion.

China’s February producer price index increases 6.6%

The National Bureau of Statistics reported today on its web site that China’s producer price index for manufactured goods increased by 6.6% from the same period last year as the purchasing prices of raw materials, fuel and power rose by 9.7%.

Crude oil prices also gained 37.5% compared to 29.9% in January, while the prices for oil products such as gasoline, diesel and kerosene jumped 8.7%, 9.8% and 11.4% respectively.

The price for fuel and power rose 17.7% and 15% respectively and ferrous and nonferrous materials increased 6.8% and 4.2% respectively.

Gainers & Losers

Reuters news reported that the chairman Jiang Chaoliang of Bank of China Communications said today in Beijing that HSBC will have the option to raise its stake in the company as much as 40% when regulations permits.

Bank of Communications rose 1% to HK$8.61. HSBC closed up 2.9% at HK$120.80 on the news.

Utilities gained with CLP Holdings rising 6.2% to HK$60.60 after brokerage Goldman Sachs added the company to its conviction buy list.

Hong Kong Electric gained 3.5% to HK$44.50.

However China Resources Power shed 2.8% to HK$16.02 on profit taking.

Commodity stocks also declined after copper prices declined by 0.7%, while platinum price fell the most in 8 year. Gold declined to $972.50 an ounce from a record $995.20 on March 5th.

Gold miner Zijin Mining Group Co Ltd slumped 3.7% as a result.