China Issues Rmb22 Billion Bonds

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

Stocks in Hong Kong edged higher but investors confidence remain fragile. Investors are increasingly realizing that the current recession is likely to be protracted and may widen further. In Hong Kong, residential prices fell 41% at its most expensive district in the three months to in December.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong residential prices drop 41.4% at its expensive location the Peak in December quarter.[/R]

Stocks in Hong Kong edged up but investor confidence remain fragile.

In Hong Kong trading Hang Seng Index increased 0.6% or 70.60 to 13,016.00, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, jumped 0.3% or 19.21 to 7,212.54. In Shanghai trading CSI 300 Index fell 4.6% or 109.45 to 2,275.84.

Daily turnover on main-board increased to HK$42.8 billion from HK$41.7 billion yesterday.

HK Peak Residential Prices Fall 41.4% in December Quarter.

South China Morning Post reported today that property prices on The Peak- the Island’s most expensive residential area- dropped 41.4% in the three months to December from the previous quarter, declining the most since the Asian financial crisis.

Property consultants at CB Richard Ellis said prices on The Peak have risen sharply in the past few years and are now declining from their recent highs.

“The economic outlook is still uncertain. The effect of the economic rescue packages may be seen in the second half of this year. We have to wait and see,"""" noted the real estate agency CB Richard Ellis.

China to Issue Rmb22 billion book-entry bonds

China’s Ministry of Finance reported today that the country will issue its first batch of book-entry bonds worth Rmb22 billion from tomorrow. The bonds will be sold till February 23.

The finance ministry said the 20-year bonds have a fixed yield of 3.86%, with interest to be calculated from February 19 and paid twice per year on February 19 and August 19. Also the principal will be paid on February 19.

First batch of book-entry bonds worth Rmb26.93 billion be available for trading on Wednesday.

In addition the seven-year bonds with a fixed yield of 2.76% were issued from February 12 to February 16.

Gainers & Losers

Hong Kong stocks rose fractionally as investors continued to worry about the deepening economic recession.

Standard Chartered fell 4.7% to HK$81.90 after Moody’s said most of the financial institutions will be hit by a deepening recession in Eastern Europe.

China Mobile advanced 1.3% and Hutchison Whampoa climbed 4.6% after sharp declines yesterday.

Bank of East Asia increased 3.9% after falling yesterday as it recorded a larger-than-expected loss in the second half of the year ended December 31.

Crocodile Garments jumped 82.7% to HK$0.38 on plans by chairman Lam Kin Ming to privatize the firm.

Shipping lines increased as the Baltic Dry Index gained 2.7%. China Shipping Development advanced 10.6% to HK$7.18 and China Cosco rose 7.3% to HK$5.03.