Ping An Falls; HK Reserves Decline

123jump.com Staff
08 May, 2008
New York City

Hong Kong reported 0.9% decline in foreign reserves in April to $160 billion and China will issue Rmb 28 billion or $4 billion of government bonds with 30 year maturity that will trade next week. Hang Seng fell 0.6% to 25,449 and CSI 300 in Shanghai trading lost 2.7% to 3,921. Refiners and airlines continue to decline as crude oil trades at a record high in the international markets.

[R]6:00AM New York, 6:00PM Hong Kong- Hong Kong foreign reserves drop 0.9% in April.[/R]

Hong Kong stock indexes fell after rising oil prices put additional pressures on airlines and oil refiners. Telecommunication stocks pared losses as optimism swelled for the industry restructuring.

In Hong Kong trading the Hang Seng Index declined 0.63% or 160.42 at 25,449.79, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, slid 1.64 % or 231.72 at 13,886.59.

In Shanghai trading, CSI 300 Index rose 2.71% or 103.72 at 3,921.04.

Daily turnover on main-board was HK$76.95 billion from HK$101.3 billion yesterday.

Hong Kong forex reserves decline 0.9% in April

The Hong Kong Monetary Authority said yesterday that the city’s foreign currency reserve assets declined 0.9% from March to $159.9 billion in April.

According to the Authority, the total foreign currency reserves account for over 7 times the currency in circulation in the Hong Kong Special Administrative Region (HKSAR), or about 39% of Hong Kong dollar M3.

Hong Kong, which is a special administrative region of China, is the world''s ninth largest holder of foreign currency reserves at the end of April.

China to issue $4 billion in 30-year Treasury bonds

Xinhua News Agency reported that the Chinese Ministry of Finance said yesterday that it will issue Rmb28 billion worth of book-entry treasury bonds this week, with a fixed annual rate of 4.5%.

According to the report, this will be the sixth batch of book-entry T-bonds this year, adding that the 30-year bonds will be sold on the inter-bank bond market and stock markets between May 8 and May 13 and will begin trading on May 16. Interest will be calculated from May 8 and paid twice annually. The principal would be returned at maturity on May 8, 2038.

Prior to this issue, China has issued five batches of book-entry T-bonds this year, worth Rmb 139 billion.

Gainers & Losers

Hong Kong stocks fell 0.6% led by oil refiners PetroChina and Sinopec after crude oil prices jumped to record highs at $123 per barrel.

Sinopec declined 3.3% to HK$7.87 and PetroChina fell 2.4% on rising crude oil prices that continue to put pressure on profit margins.

CITIC Resources Holdings Ltd advanced 8% CNOOC Ltd increased 1% to HK$14.02.

Airlines also felt the brunt of the rising oil prices. Air China declined 2.2% at HK$5.72, while China Southern plummeted 2% and China Eastern plunged 2.6%.

Stocks in the telecommunications industries continued to rise on speculation of an imminent restructure in the industry. China Unicom rose 2.9% to HK$17.1 and China Netcom gained 2.6%.

However China Mobile fell 1% after denying it had entered a bid for South African mobile telecom operator MTN but expressed its interest on the South African market.

Ping An Insurance fell 3.5% on news it has not changed its plan to offer local currency A shares and China Life plunged 2.5%.

Asian markets review

In Tokyo Nikkei 225 Index closed lower 159.22 or 1.13% to 13,943.26, in Hong Kong Hang Seng index decreased 160.42 or 0.63% closed to 25,449.79. In Australia ASX 200 index higher 54.80 or 0.97% to close 5,723.20. In Malaysia KL Composite index decreased 6.80 or 0.53% closed to 1,280.35.

In South Korea Kospi Index decreased 6.01 or 0.32% to close at 1,848.00, in Thailand SET index closed higher 1.46 or 0.17% to 850.17 and Indonesia JSE Index edged decreased 5.77 or 0.24% to 2,376.93. Sensex index in India decreased 258.66 or 1.49% to 17,080.65.