Hong Kong Production Falls, in China Rises

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

Industrial production in China rose at 16% in May after rising at a rate of 15.7% in April. Producer price jumped 8.2% in the month and consumer prices rose 7.7% during the period. Hong Kong reported first quarter growth in the GDP of 9.6% and after adjusting for inflation increased at 7.1%. Hong Kong industrial production fell 4.4% in the quarter.

[R]6:00AM New York, 6:00 PM - Hong Kong first quarter GDP increases 9.6% from a year ago.[/R]

Stocks in Hong Kong increased driven by falling oil prices but investors remained cautious over uncertainties in the market.

Market sentiment

In Hong Kong trading Hang Seng Index advanced 1.94% or 437.39 at 23,029.69, and the China Enterprises Index of Hong Kong listed mainland stocks, or H shares, gained 2.83% or 345.24 at 12,558.36. In Shanghai trading CSI 300 Index slid 0.90% or 26.88 at 2,952.24.

Daily turnover on main-board was HK$56.68 billion compared with HK$59.07 billion on Friday last week.

Hong Kong economy grows at 9.6%

Hong Kong economy rose at a brisk pace of 9.6% to HK$ 409.3 billion or $52.5 billion according to the Census and Statistics Department in Hong Kong. After adjusting for the inflation the GDP rose 7.1% in the first quarter and GNP increased at a rate of 4%.

Hong Kong industrial production fall 4.4%

The Census and Statistics Department reported on Friday last week that the index of industrial production for the manufacturing sector in the first quarter fell 4.4% from a year ago, while the producer price index advanced 5.8%.

The producer price index for the manufacturing sector also climbed 2.8% from the fourth quarter.

According to the report, first quarter output in the textiles industry dropped 22.8% from the same period a year ago and electrical and electronic products, machinery, professional equipment and optical goods industry slumped 14.2%. The apparel industry, excluding footwear, fell 8.9%.

However, output for basic metals and fabricated metal products industry advanced 7.5% on the year, while food, beverages and the tobacco industry gained 6.9% from the comparable quarter a year ago.

Chemical, rubber, and plastic and non-metallic mineral products industry increased 5.3% and paper products and printing industry edged up 1.7%.

Fabricated metal products, except machinery and equipment rose the most for producer prices with a jump of 9.1% percent, followed by the machinery, equipment, apparatus, parts and components industry spiking 3.5%.

China records $5.56 billion in M&A activity in May

Xinhua News Agency reported today that investment researcher China Venture said on Saturday that 33 cases of mergers and acquisitions valued at $5.56 billion were recorded in May, representing a 32% increase from April.

Of the total monthly mergers and acquisitions 52.7% were in the manufacturing, energy and mining sectors.

China central bank issues tougher outlook to control inflation

China Daily online reported on its website that the People’s Bank of China said in its annual financial stability report on Friday last week it will take “forceful” steps to control excessive price increases and prevent drastic fluctuation of assets prices.

The country''s money supply growth increased from 16.94% in April to 18.07% in May.

Gainers & Losers

Sinopec rose 3.4% as crude oil for July delivery fell 0.7% to $133.96 a barrel on expectations Saudi Arabia will increase production.

China Mobile also rose 2.4%

Financial stocks however recovered from the last week’s losses. China Life jumped 2.9%, Ping An advanced 3.3%, ICBC rose 2.2% and China Merchants Bank increased 3.6%.

Realty stocks also increased on news that housing prices advanced 9.2% in May. China Overseas Land & Investment edged up 3.8%, R&F Properties spiked 5%.

Shanghai Petrochemical increased 4.8%, PetroChina gained 2.7% and CNOOC rallied 1.7%

Shipping lines rebounded on last Friday’s losses on bargain hunting. China Shipping Development gained 5.4% and China Cosco climbed 3.4%.