Industrial Production Rise in China Slows

123jump.com Staff
15 Dec, 2008
New York City

Chinese industrial production in November rises at the slowest pace in seven years. The sharp fall in global economies has dragged exports and domestic economy. Stocks in Hong Kong and Shanghai rose after China indicated that 3G telecom licenses will issued by the end of the year.

[R]6:00AM New York, 6:00PM Hong Kong - China''s industrial production rises 5.4% in November.[/R]

Hong Kong stocks rose led by shipping lines, carmakers and telecommunication stocks.

In Hong Kong trading Hang Seng Index rose 2% or 288.56 to 5,046.95, and the China Enterprises of Hong Kong listed mainland shares, or H shares, gained 2% or 93.45 to 8,005.21. In Shanghai trading CSI 300 Index advanced 0.8% or 14.65 to 1,975.03.

Daily turnover on main-board dropped to HK$42.6 billion from HK$58.8 billion on Friday last week.

Industrial Production Rises 5.4% in November

National Bureau of Statistics reported today that China''s industrial production gained 5.4% from a year ago in November but declined from 8.2% in October, the lowest in seven years.

Electricity output dropped 9.6% in November, while pig iron production dipped 16.2%. Production of raw steel declined 12.4% and steel products dropped 11%.

Vehicle production fell 15.9% and car output declined 10.1%.

China to Issue 3G License at Year End

People''s Daily Online reported today that the country''s industry and information technology minister Li Yizhong said at a recent press conference that China will issue the third generation mobile telecommunications license at the end of this year.

The 3G mobile telecommunications standard, TD-SCDMA, will be granted to China Mobile, China Unicom will get the WCDMA license and China Telecom will be granted the CDMA2000 license.

According to the report, China Mobile, China Unicom and China Telecom have increased investments and strengthening technological innovation. Industry investment into 3G is forecasted at Rmb200 billion.

Gainers & Losers

Hong Kong stocks rose led by China Mobile on news that China will issue third generation mobile telecommunication license at the end of the year.

Shipping lines also rose on speculation that demand for raw materials will rise on the U.S. bailout of the auto sector.

Financial stocks however fell. BOC Hong Kong fell 4.7% after Morgan Stanley downgraded the stock to ""underweight"" from ""equal-weight.""

China Construction Bank dipped 2.4% on news Bank of America was planning to sell some of its shares in the Chinese lender to raise $3 billion.

Carmakers rose on expectations that the U.S. will tap into the Troubled Assets Relief Program in order rescue Ford Motors, General Motors and Chrysler LLC. Dongfeng Motor Group soared 6.4% and Denway Motors advanced 6.3%.

Telecommunication stocks rose. China Mobile rose 3.2%, China Telecom gained 4.3% and China Unicom jumped 4.2%.

Shipping lines soared after the Baltic Dry Index surged 7.5%. China Cosco climbed 6.6% and China Shipping Development added 9.2%.