Hong Kong Indices Up; China Steelmakers See Loss

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

Hong Kong market indices rose on towering oil prices and the conflict between Israel and Hamas fuelling worries that hostilities will affect oil supplies. China Iron and Steel Association announced the country''s steel plants posted a combined loss of Rmb12.77 billion in November.

[R]6:00AM New York, 6:00PM Hong Kong- Hong Kong bourse operators to consider opposition to proposed expansion of “blackout” period.[/R]

Market Sentiment

In Hong Kong trading Hang Seng Index rose 1% or 144.34 to 14,328.48, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, soared 1.5% or 112.61 to 7,797.78. In Shanghai trading CSI 300 Index fell 0.4% or 7.34 to 1,854.76.

Daily turnover on main-board was HK$21.9 billion.

Hong Kong Bourse Operators to Hold Discussions on Blackout Period

Reuters News reported today that Hong Kong bourse operators will hold an emergency meeting tomorrow to consider opposition from companies and legislators to prevent directors from dealing in company shares for an extended period.

The “blackout” period on share transactions is set to be implemented on January 1.

Under the proposed regulations, the bourse operators will scrap the current one-month blackout before results are announced and replace it will a directive prohibiting directors and key shareholders from dealing in shares for up to seven calendar months a year and up to nine if the company reports quarterly.

Legislative councilor and member of the Economic Services Panel Abraham Shek Lai-him said he will call for another consultation after Cheung Kong Holdings and Li & Fung criticized the process as “hasty and questionable”.
The report notes that 238 listed companies, 22 individuals from major corporations and six business associations are against the proposal.

China to Increase Export Tax Rebates for Machinery Products

Xinhua News Agency reported that China's Ministry of Finance and State Administration of Taxation will increase export tax rebates for machinery products effective January 1, 2009 to offload tax burdens on exporters.
Rebate hikes will involve 553 types of high-tech and high value-added mechanical and electrical products.

Export tax rebate rates for industrial robots and inertial navigation systems for aviation use will be hiked to 17%, from 13% and 14% correspondingly.

In addition, rebate rates for exported motorcycles and sewing machines will rise to 14% from 11% and 13% in that order.

China's Steel Plants Posts a Loss of Rmb12.77 billion in November

Separately the online edition reported that China Iron and Steel Association said the country's steel plants posted a loss of Rmb12.77 billion in November.

The association said 48 of the 71 steelmakers had a cumulative loss of Rmb14 billion.

Gainers & Losers
Hong Kong market indices rose on soaring oil prices and the conflict between Israel and Hamas escalating stoking worries that hostilities will affect oil supplies.

However, financial stocks pared gains on imminent earnings results.
CNOOC rose 3.9% after crude prices gained $2 to $37.7 per barrel and Zijin Mining climbed 8.4% as gold prices increased $23.20 to $871.2 per ounce.
PetroChina rallied 3.1%.

Financial stocks fell. Construction Bank declined 1.4% and HSBC dropped 0.6%.

CITIC Pacific gained 7.4% after CITIC Group became the biggest shareholder in the company with 57.56% equity after completing the conversion of convertible bonds into 1.45 billion shares.

Fixed-line provider PCCW increased 3% after Pacific Century Regional Development said its shareholders had approved a plan to privatize PCCW.
PCCW will tomorrow consider a HK$15.941 billion buyout offer from PCRD and China Netcom.