Hong Stocks Drop, China Life Plunges 7%

123jump.com Staff
21 Jan, 2009
New York City

Hong Kong exports decline 7.1% in November. Global worries dragged the bench mark index in Hong Kong and in Shanghai. Banks and insurance companies fell the most. China Life dropped 7.5% after it estimated a profit decline of 50%.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong exports decline 7.1% in November. Global worries dragged the bench mark index in Hong Kong and in Shanghai. Banks and insurance companies fell the most. China Life dropped 7.5% after it estimated a profit decline of 50%.[/R]

The benchmark stock index fell after a report showed that the volume of total goods exports fell in November. The mounting fears that corporate earnings will be weaker than estimated also contributed to the market weakness.

Financial stocks plummeted on worries that a deepening economic slump will increase defaults.

In Hong Kong trading Hang Seng Index slipped 2.9% or 376.14 to 12,583.63, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, dipped 3.9% or 275.06 to 6,730.82. In Shanghai trading CSI 300 Index shed 0.2% or 3.48 to 2,021.71.

Daily turnover on main-board increased to HK$47.7 billion from HK$39.6 billion yesterday.

Hong Kong Exports Decline 7.1% in November

Hong Kong’s Census and Statistics Department reported today that the volume of total goods exports fell 7.1% in November from the same period a year ago, while imports dropped 9.8%.

The prices of total goods exports increased 4.1% and the price of goods imports advanced 3.1%.

Total export volumes to UK declined 13.2% and to the U.S. fell 12% as global conditions deteriorate.

The department added that the volume of Hong Kong''s goods re-exports increased 5.5% in the 11 months to November from the comparable year ago period, while domestic exports fell 20.6%.

Insurance Industry Premium Increase in 2008

China Insurance Regulatory Commission said today the industry reported that premiums grew 39.1% to Rmb978.41 billion in 2008.

Growth in Life insurance increased 49.2% to Rmb665.84 billion, while health insurance premiums rose 52.4% to Rmb 58.55 billion.

Gainers & Losers

Hong Kong stocks shed as corporate earnings continued to slip on deteriorating economic conditions. Investors were also cautious ahead of the Lunar New Year break.

Financial stocks declined on fears of rising defaults as economic conditions worsen. HSBC shed 4.4%.

China Life Insurance plunged 7.5% after the company said profit declined 50% as equities prices fell.

China''s Angang Steel Co Ltd shed 12.9% after it downgraded its profit forecast for 2008 by 55% to Rmb3.42 billion on high raw material costs and declining steel prices.

CNOOC Ltd slipped 2.6%.

Aluminum Corp of China Ltd (Chalco) slipped 6.6% after Morgan Stanley said the company is exposed to weak metal prices.

The brokerage also cut its rating on the stock.

Shanghai Airlines Forecast Losses to Double in 2008

Xinhua News Agency reported today that losses might double in 2008 from a year earlier on weak demand and hedging losses.

The airliner has lost Rmb170 million in fair value of fuel hedging contracts in 2008.

China Life Profit Falls 50%

China Life reported yesterday that un-audited net profit fell more than 50% from a year earlier.

In its statement, the insurer said the preliminary estimate was based on Chinese accounting standards.

Audited 2008 annual results are due on March 26.