Subdued Stocks in China Region

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

Stocks in Hong Kong and China edhed lower as cautious investors stayed on the sidelines. Oil prices traded at elevated level as a storm in Gulf of Mexico headed in the direction of oil installations. In the first half ending in June, China tax revenues tose 30.5% to 3.3 trillion yuans on rising corporate profits. Home prices in seventy largest citie rose 8.2% in June from a year ago but declined 1% from May.

[R]6:00AM New York, 6:00PM Hong Kong - China tax revenues increase 30.5% to Rmb3.26 trillion in the first half of the year.[/R]

In Hong Kong trading Hang Seng Index declined 0.02% or 5.42 at 22,527.48, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, dropped 0.12% or 15.43 at 12,443.38. In Shanghai trading CSI 300 Index shed 0.22% or 6.31 at 2,904.74.

Daily turnover on main-board fell to HK$51.9 billion compared with HK$69.6 billion yesterday.

China Tax Revenues Climbs 30.5%

The State Administration of Taxation said China’s tax revenues increased 30.5% on the year to Rmb 3.26 trillion in the first six months of the year, driven mainly by a marked increase in corporate profits.

According to the report, about half of the tax revenue came from value-added tax that increased 22.4%, consumption tax, which rose 18.5%, and turnover taxes rising 25.7%.

Import tariffs grew 34.9% to Rmb395.6 billion and stamp tax on securities trading advanced 34.2% at Rmb83.7 billion.

Home Prices Rise in June

The People’s Daily Online reported on its Web site today that a research by National Development and Reform Commission and the Bureau of Statistics said that the price of housing in 70 large and medium-sized cities in China increased 8.2% in June from a year ago but 1% lower than in May.


Cities where new housing prices are higher than the comparable period a year ago include Urumchi, Haikou, Ningbo, Beijing and Hangzhou, which recorded increases of 20.2%, 18.1%, 14.7%, 14.3% and 13.3% respectively.

Prices of the newly-constructed housing edged up 9.2% from the same period a year earlier as the prices of economically affordable housing rose by 3.2% and the price of ordinary housing and top-grade housing rose 9.7% and by 11.1% respectively.

China’s Banks Assets Rise 19%

Xinhua News Agency reported today that China Banking Regulatory Commission showed that the total foreign and domestic currency assets of Chinese lenders increased by 19% from a year ago to Rmb57.7 trillion in June.

Also combined liabilities gained 18.4% to Rmb54.4 trillion. In the review period liabilities of state-owned banks rose 13.7% to Rmb28.4 trillion, while joint stock commercial banks increased 25.2% at Rmb 7.7 trillion.

Gainers & Losers

Stocks in Hong Kong traded in negative territory on profit taking and cautious trading as U.S. companies Texas Instruments and Apple reported earnings that were below market expectations.

Lenovo plunged 5% after IBM disposed of its 1.3% stake in the company for an estimated $77.3 million and on an investor downgrade.

However Semiconductor Manufacturing International Co. advanced 11% on reports Datang Telecom group might acquire a 20% stake in SMIC.

Commodity stock CNOOC edged up 0.7% as oil prices surged above $130 a barrel as tropical storm in Gulf of Mexico head towards oil installations. Airlines also plummeted on retreating oil prices. Air China slid 3.4% and Cathay Pacific Airways declined 3.2%.

Retailer Esprit fell 2.3% and China Unicom declined 2.3% on declines in CDMA subscriber additions in June. Aluminium Corp of China or Chalco plunged 3.3% after Goldman Sachs downgraded the stock to “neutral” from “buy.”

Anhui Conch shed 6% after Goldman Sachs cut the stock to “sell” from “neutral”.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 381.26 or 2.98% to 13,184.96, Hang Seng index in Hong Kong decreased 5.42 or 0.02% closed to 22,527.48. ASX 200 index in Australia decreased 6.20 or 0.12% to close 5,005.60. The KL Composite index in Malaysia increased 6.09 or 0.55% closed to 1,109.57.

The Kospi Index in South Korea decreased 1.69 or 0.11% to close at 1,561.23, SET index in Thailand closed lower 5.15 or 0.75% to 682.15 and JSE Index in Indonesia increased 17.69 or 0.81% to 2,212.75. The Sensex index in India increased 254.16 or 1.84% to 14,104.20.