Insurers, Automakers Lift China Indexes

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

Hong Kong stocks edged up on the hopes that China will provide more incentives for insurance sectors and lower taxes for vehicle purchase. China Cosco, ocean freight company reported hedging loss of Rmb4 billion. Automakers and insurance companies led the gainers in trading.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong stocks rose led by insurance companies.[/R]

Hong Kong market averages rose led by insurance companies on expectations that Beijing will intervene to help boost investment in the sector.

In Hong Kong trading Hang Seng Index edged up 0.6% or 83.26 to 15,130.21, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, gained 0.7% or 58.54 to 8,063.75. In Shanghai trading CSI 300 Index advanced 1% or 19.42 to 1,994.45.

Daily turnover on main-board dropped to HK$40.3 billion from HK$42.6 billion yesterday.

Value Added of Industrial Enterprises Rises 5.4% in November

National Bureau of Statistics reported today that net income at value-added enterprises with more than Rmb5 million annual income rose 5.4% in November from a year ago and dropped 11.9 percentage points from the comparable year ago period.

Growth rate in textile industry increased by 6.2%, non-metal mineral products industry, general equipment manufacturing industry 11.6%, transportation equipment manufacturing industry 8%, electric machinery 3.6% and equipment manufacturing industry 12.5%.

In addition, the growth rate of chemical raw material and chemical products gained 3.3%, telecommunication advanced 0.2% and computer and other electric facilities equipment manufacturing industry increased 1.1%.

The NBS also said crude coal increased 5.2% for the year to 230 million tons and crude oil increased 4.9% to 15.86 million tons.

Power generation slid 9.6% to 254.02 kilowatt-hours and pig iron, crude steel and rolled steel fell 16.2%, 12.4% and 11% respectively.

Value added of industrial enterprises above the designated size gained 13.7% year-on-year in the January-November period.

Separately, the statistics bureau noted that the country''s fixed assets investment in urban areas edged up 26.8% to Rmb12.76 trillion in the first 11 months of the year.

The growth rate was 0.4 percentage points lower than the January-October period.

Gainers & Losers

Hong Kong stocks increased spurred by insurance companies on news that China will introduce new measures to broaden investment in the sector.

PICC P&C rose 17.5% and China Life increased 3.4%.

Property stocks soared. China Overseas Land Investment gained 4.5%, Guangzhou R&F Properties increased 8%.

China Cosco fell 0.7% after it announced hedging losses of Rmb4 billion. However a 5% increase in freight rate index trimmed the losses in stock.

Carmakers also soared after Shanghai Securities News reported that China may cut vehicle purchase tax for passenger cars. Dongfeng Motor Group rose 6%.