Refined Oil Imports in China Rise

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

Hong Kong left its key rate unchanged following the similar move by the U.S. Federal Reserve. The new mortgage loans origination declined in December in Hong Kong. Oil consumption rose at a slower pace in 2008 in China but production increased at a faster pace.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong leaves its key rate unchanged. China''s oil consumption increases 11.9% to 215 million tons in 2008.[/R]

Hong Kong stocks rose 4.6% leveraged by mounting expectations that the massive stimulus package being proposed by the U.S. government will help to arrest the deteriorating economic conditions on the global market.

In Hong Kong trading Hang Seng Index rose 4.6% or 575.83 to 13,154.43, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, or 5.1% or 340.77 to 7,002.70.

Stock markets in China are closed for the rest of the week for the Lunar New Year Holidays. Trading will resume Monday next week.

Daily turnover on main-board increased to HK$39.2 billion from HK$33.7 billion on Friday last week.

Hong Kong Leaves Key Rate Unchanged

Hong Kong Monetary Authority reported today that it left the key rate unchanged at 0.5% in line with the policy decision that was made by the U.S. Federal Reserve Bank.

Hong Kong monetary policy is anchored on the U.S. dollar.

Net Mortgage Loans Drop 11% in December

Separately, Hong Kong Monetary Authority reported today that according to the monthly survey of residential mortgage lending, that the new mortgage loans origination declined to 11% to HK$7.2 billion in December from a month ago.

New loans approved advanced 22.8% to HK$10.4 billion due to increases of HK$1 billion or 71.3% in approvals for primary market transactions and of 18.8% or HK$1.1 billion in approvals for secondary market.

New applications increased 14.8%.

The proportion of new loans approved at more than 2.5% below the best lending rate shed to 3.3% from 15.0% in November, and the proportion of new approvals priced with reference to rates other than the best lending rate rose to 17.7% from 9.0% from the comparable year ago period.

In addition, outstanding mortgage loans fell 2.1% to HK$588 billion and the mortgage delinquency ratio remained unchanged at 0.05%.

China Oil Consumption Rises 11.9% in 2008

China Petroleum and Chemical Association said on Tuesday the oil consumption advanced 11.9% to 215 million tons from the same period a year ago, an increase of 5 percentage points that a year ago.

China''s crude oil consumption advanced 5.8% from 2007 to 365 million tons, the consumption rate rose at a 1.5% percentage rate slower than in 2007.

The Deputy Head of the association''s information and market department Zhu Fang said refined oil product consumption grew faster than that of crude oil because imports rose in the second and third quarters.

The report also notes that China''s imports of oil products such as gasoline, diesel oil and kerosene rose 107% to 14.71 million tons.

Gainers & Losers

Hong Kong stock indexes rose on the expectations that the U.S. stimulus package will stall the recent economic decline. The U.S. financial turmoil has thrown the world economy in to a deep recession not seen in more than three decades.

HSBC edged up 9%, ICBC gained 4.3%, China Construction Bank climbed 6%, Bank of China jumped 4.3% and China Life soared 4.3%.

Energy stocks jumped despite the decline in falling prices to $42 per barrel as OPEC reiterated its commitment to sharply cut production. Sinopec advanced 3.6%, CNOOC rose 5.4% and Petrochina increased 4.3%.

Sun Hung Kai Properties rose 3.8% on news the company will speed up efforts to sell its residential units this year.

China Mobile increased 2.3% on the speculation that the company is looking for acquisitions.