China HK Trade UP 9.3%

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

Stocks in Shanghai and Hong Kong fell as crude oil continued to rise. The rise in energy prices fueled inflation fears. China also denied that it will deregulate petrol and oil prices. The denial prompted a sell-off in the oil refiners. Hang Seng index fell 1.6% to 25,043 and CSI 300 index in Shanghai declined 1.9% to 3,711. Trade between Hong Kong and mainland China increased 9% to $63 billion in the first four months of 2008, fueling the economic expansion in China.

[R]6:00AM New York, 6:00PM Hong Kong - Trade between China and Hong Kong rise 9.3% to $63 billion in the first four months of 2008.[/R]

Stocks in Hong Kong fell after oil refiners plummeted on news China denied that it is considering deregulating prices of petroleum products.

In Hong Kong trading Hang Seng Index declined 1.64% or 417.17 at 25,043.12, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, fell 2.21% or 312.89 at 13,820.84. In Shanghai trading, CSI 300 Index fell 1.89% or 71.60 at 3,711.44.

Daily turnover on main-board was HK$81.1 billion compared with HK$79.2 billion yesterday.

Trade between China and Hong Kong soars 9.3% to US$62.98 billion

Xinhua News Agency reported today that according to the Ministry of Commerce trade between the Chinese mainland and the Hong Kong Special Administrative Region advanced 9.3% from a year ago to $62.98 billion in the first four months of the year.

Mainland''s exports to the Hong Kong rose 8.5% year-on-year to $58.57 billion, while imports from Hong Kong surged 20.5% to US$ 4.41 billion.

In addition, the Ministry said that Chinese mainland received direct investment from HK in the form of 4,548 projects, an increase of 6.7% from a year earlier, and the actual use of Hong Kong direct investment increased 113.7% to $15.1 billion.

HK direct investment to the mainland at the end of April 2008 topped $323.64 billion in 290,311 projects.

Total assets of Chinese insurance companies rise to Rmb3.03 trillion

Separately, the online edition reported today that the China Insurance Regulatory Commission said the total assets of Chinese insurance companies reached Rmb3.03 trillion by the end of April this year.

Total assets of foreign-funded insurers stood at Rmb125.6 billion by the end of last year, accounting for 4.33% of the industry''s total assets.

Insurance companies'' monthly investment surpassed Rmb91.4 billion in April, while the newly added bank deposits by the insurers was only Rmb16.4 billion last month.

China Life Insurance (Group) Co., China Ping An and China Pacific Insurance are the three biggest players in terms of asset scales.

Gainers & Losers

Sinopec fell 3.2% percent and PetroChina slid 1.6% after rising yesterday on news Beijing was mulling deregulating prices of petroleum products and increasing subsidies to refiners.

Property companies fell on the fears that the Federal Reserve in the U.S. may not cut rate in the short and medium term. The release of Fed minutes of minutes suggested that most voting members appear to believe that the risks for economic growth and inflation are in balance and the economy does not need additional help from interest rates.

Sino Land and Hang Lung both fell by more than 3%. Exporter Li & Fung also fell 3.3% on the news.

Aviation and shipping lines also tumbled after crude oil prices increased above $135 per barrel as U.S. inventories fell. China COSCO slumped 7.6% after Credit Suisse cut the stock to ""neutral"" from ""outperform"". Also China Shipping Development edged down 4.9% and CSCL dropped 4%. Airliners Air China shed 3.8%, China Eastern declined 6% and China Eastern fell 5.6%.

China Mobile fell 1.6% and HSBC declined 1.3%.