Chinese Properties Prices Rise

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

The government agency in China reported urban property prices rose 10.1% in April from a year ago and prices of new building rose 11.4% in the month. The property investment surged nearly 25% in the first four months of the year matching the rate in 2007. Shipping and container companies surged after 4% rise in Baltic Dry Index that tracks ocean freights in the world.

[R]6:00AM New York, 6:00PM Hong Kong - China property prices increase 10% in April.[/R]

Oil refiners led Hong Kong stocks higher after crude oil prices fell.

Market sentiment

In Hong Kong trading the Hang Seng Index rose 0.41% or 105.15 at 25,618.86, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, gained 1.13% or 158.43 at 14,185.98. In Shanghai trading CSI 300 Index dropped 0.30% or 11.97 at 3,936.12.

Daily turnover on main-board was to HK$79.6 billion compared with HK$80.2 billion yesterday.

China property prices increase 10% in April

The National Development and Reform Commission and the National Bureau of Statistics reported yesterday that China’s urban property prices rose 10.1% in April from a year earlier. However, average property prices in 70 large and medium-sized cities dropped by 0.6% in April from March.

Also prices of new buildings advanced 11.4% year-on-year and those of middle and high-end properties increased 12.7% and existing homes prices increased 10.3% in April. Urban fixed-assets investment gained 25.7% in the first four months year-on-year compared to 25.9% increase in the first quarter.

China can curb the rising inflation

Xinhua News Agency reported today that vice governor of the People’s Bank of China Su Ning said at a one-day forum on Sino-Indian financial cooperation China is unlikely to experience galloping inflation despite global inflation.

Su added that it is imperative for the Chinese government to pay close attention to inflation pressure in the future, adding the country is capable of fighting rising inflation because it has a favorable fiscal balance in the international market and corporate profitability has significantly improved.

China''s consumer price index, the main gauge of inflation, has risen from 3% in March last year to above 6% in August 2007, and to 8.5% rise in the last month, on the robust domestic economy and a surge in domestic food price on natural disturbances and increasing international energy prices.

Gainers & Losers

Dongfang Electric tumbled 14% after it said that the recent earthquake near Chengdu had affected production, but rival Shanghai Electric advanced 6.8% on speculation that it will capitalize from the Dongfang''s production loss.

Shipping lines also advanced after the Baltic Dry Index advanced 3.9% on robust demand in China and India. PetroChina increased 3.4% and Sinopec rose 3.1% on easing crude oil prices.

China Construction Bank tumbled 2.5% at HK$7.05 after an institutional investor sold 408.5 million shares at the low end of a price range of HK$7.05 to HK$7.10 per share.

Sinotrans advanced 5.6%, China COSCO gained 3.1% and China Shipping Development increased1.3%. Also container ship operator CSCL increased 7.5%.

Sun Hung Kai Properties fell 1.7% after its chairman filed a suit to block the firm''s directors from removing him.

Hunan Nonferrous Metals Corp increased 16% after the company announced it plans to pay about A$81.21million in a takeover bid for Australian mining firm Abra Mining.