Fixed Investment in China Up 26%

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

Stocks in Hong Kong gained but in Shanghai continue to fall. In Shanghai trading CSI 300 Index fell 3.71% or 109.57 at 2,842.68. Hong Kong Monetary Authority reported yesterday that foreign assets of Hong Kong

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong Exchange Fund foreign assets decrease by HK$56.68 in May.[/R]

Market sentiment

In Hong Kong Hang Seng increased 0.12% or 28.30 to 23,057.99, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, rose 0.08% or 9.67 at 12,568.03. In Shanghai trading CSI 300 Index fell 3.71% or 109.57 at 2,842.68.

Daily turnover on main-board was HK$48.26 billion compared to HK$56.68 billion yesterday.

Hong Kong Exchange Fund foreign assets declined by HK$6.3 billion in May

Hong Kong Monetary Authority reported yesterday that foreign assets of Hong Kong’s Exchange Fund declined by HK$6.3 billion from April to HK$1.19 trillion in May.

The report notes that the monetary base, which consists of certificates of indebtedness, government issued currency notes and coins in circulation, the aggregate balance of the banking system and exchange fund bills and notes issued was at HK$325.2 billion.

HKMA said claims on the private sector rose to HK$63.4 billion dollars and foreign liabilities, representing mainly obligations under repurchase agreements, increased to HK$1.6 billion.

Retail sales of consumer goods increase to 21.6%

The People’s Daily Online reported today that the National Bureau of Statistics recently said retail sales of consumer goods in China gained 21.6% year-on-year to Rmb870.4 billion.

Retail sales of consumer goods in urban areas gained 22.3% over the same period of the previous year, while consumer goods retail sales at and below county level advanced 20.1% to Rmb 275.7 billion. Overall, retail sales have risen over 20% this year.

China, US Companies in deals worth $13.6 billion

Xinhua News Agency reported today that representatives from China and the U.S. signed 71 contracts worth $13.6 billion in Missouri and Washington D.C.

Chinese Vice Premier Wang Qishan present at the meetings said both the Chinese and U.S. governments need to attach great importance to their cooperation in the U.S. Midwest region and look for a greater cooperation between the two nations.

Gainers & Losers

Airlines stocks were mixed. Air China fell 3.2%after reporting that passenger fell 10.7% in April from the previous month due to the plummeting demand and the earthquake that hit the Sichuan Province. Cathay Pacific Airways declined 1.4% on generally rising oil prices.

CNOOC and PetroChina both gained 0.6% on speculation that Beijing will increase the price of petroleum products before the Olympics in August. Sinopec Corp also increased 2.8%.

Telecommunication stocks rose on bargain hunting as China Unicom advanced 3.2% and China Netcom climbed 3.4%.

China Railway Construction Corp Ltd added 1.1% after saying the cumulative value of contracts signed, excluding real estate development operation, soared to Rmb109.621 billion for the first five months of 2008.

Asian markets review

In Tokyo Nikkei 225 Index closed lower 6.00 or 0.04% to 14,348.37, in Hong Kong Hang Seng index increased 28.30 or 0.12% closed to 23,057.99. In Australia ASX 200 index higher 51.00 or 0.95% to close 5,422.70. In Malaysia KL Composite index decreased 10.30 or 0.83% closed to 1,227.76.

In South Korea Kospi Index decreased 10.11 or 0.57% to close at 1,750.71, in Thailand SET index closed lower 10.42 or 1.32% to 777.17 and Indonesia JSE Index edged decreased 20.07 or 0.84% to 2,377.98. Sensex index in India increased 301.08 or 1.96% to 15,696.90.