China Retail Sales Surge 24.5%

123jump.com Staff
16 Feb, 2009
New York City

Hong Kong loses 10,000 jobs as the global financial crisis keep widening. Sales at Chinese major retailers rise 24.5% in January. The benchmark index in Hong Kong dropped 0.7% but in Shanghai increased 2.6%.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong loses 10,000 jobs as the global financial crisis keep widening. Sales at Chinese major retailers rise 24.5% in January.[/R]

The benchmark stock index slipped in Hong Kong on market jitters ahead of the earnings season, which begins tomorrow. Financial stocks fell.

In Hong Kong trading Hang Seng Index fell 0.7% or 98.79 to 13,455.55, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, slipped 0.1% or 8.18 to 7,560.55. In Shanghai trading CSI 300 Index advanced 2.6% or 63.18 to 2,462.24.

Daily turnover on main-board declined to HK$34.6 billion from HK$36.2 billion on Friday last week.

Hong Kong Loses 10,000 Jobs

Xinhua News Agency reported today that Hong Kong''s Labour Secretary Matthew Cheung told Radio Television Hong Kong that 10,000 jobs have been shed since the beginning of the global financial crisis.

Cheung said there is likely to be increased pressure on the labour market when new graduates leave schools in May.

The insurance and catering industries are however still expanding.

Sales for Chinese Major Retailers Rise 24.5% in January

The online news agency reported that the Ministry of Commerce said sales at China''s 1,000 major retailers advanced 24.5% year-on-year in January.

Separately, the MOC said the country''s use of foreign investment dropped 32.7% to $7.54 billion in January due to the global financial crisis and the higher-than-expected increases in the same period a year earlier.

China also approved the establishment of 1,496 foreign funded companies in January, a drop of 48.7% from the comparable year ago period.

Head of the Economic Research Institute, which falls under the auspices of the National Development and Reform Commission, Zhang Yansheng, said foreign investment will maintain stable growth this year as China reforms its legal and government services and the process of urbanization expands.

Gainers & Losers

Hong Kong stocks dipped 0.7% led by financial stocks as caution prevailed before the beginning of the earnings season.

Losses were pared by gains by mainland stocks.

Bank of East Asia fell 4.1% to HK$15.56 ahead of its results tomorrow, HSBC slipped 3.3% to HK$59 and Hang Seng Bank declined 2% to HK$87.

China Mengniu Dairy increased 3.5% to HK$10.5 after the company reported that Chinese authorities established that an unapproved additive- osteoblast milk protein in its milk products was safe.

China National Building Material edged up 6.5% to HK$9.55 after the company secured Rmb10.8 billion from China Construction Bank Corp to support its long term business development plans between 2009 and 2013.

Steel stocks gained as steel prices increased. Angang Steel jumped 5.6% to HK$7.88.

Melco International fell 5.4% on worries its profit will decline in 2008.