China-Japan Trade Drops, Shanghai Index Plunges

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

China unveils stimulus package for nonferrous metals and logistics sector. Trade between Japan and China is expected to decline in 2009 for the first time in eleven years as global market conditions weaken.

[R]6:00AM New York, 6:00PM Hong Kong - China unveils stimulus package for nonferrous metals and logistics sector. Trade between Japan and China is expected to decline in 2009 for the first time in eleven years as global market conditions weaken.[/R]

Market Sentiment

In Hong Kong trading Hang Seng Index fell 0.9% or 110.14 to 12,894.94, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, declined 2.6% or 188.31 to 6,995.41. In Shanghai trading CSI 300 Index shed 5% or 114.07 to 2,190.18.

Daily turnover on main-board increased to HK$39.5 billion from HK$37.3 billion yesterday.

Stimulus for Nonferrous Metals and Logistics Sectors

China’s State Council reported yesterday that central and local governments must allocate Rmb100 billion within two years for both the promotion of technical innovations and development in the nonferrous metals and logistics sector.

The country will also offer subsidized loans to support the innovations within the nonferrous metals sector and to sponsor company restructuring.

A national reserve system for the industry will also be established, while the Council agreed to remove technically undeveloped producers to trim capacity. The council also proposed nine projects.

China’s Trade with Japan to Shrink in 2009

Japan External Trade Organisation said today China’s trade with Japan will drop in 2009, falling for the first time in 11 years on deteriorating conditions on the global financial markets.

Trade between the two nations increased 12.5% to $266.4 billion in 2008.

Gainers & Losers

Hong Kong stocks fell on a sell-off of blue chip stocks on the index futures expiration.

China Mobile fell 2.8% to HK$68.50.

HSBC rose 4.3% to HK$57.45. The bank is expected to announce a capital raising plan when it announces earnings results on March 2.

Chinese Estates declined 4.6% to HK$8.14 after the company cautioned that it will record a loss in 2008.

SmarTone Telecommunications shed 5.5% to HK$4.44 after announcing that revenues in the six months to December dropped 5%.

Coal stocks fell. China Shenhua tumbled 3.4% to HK$16.04, Yanzhou Coal plunged 5.4%, China Coal Energy declined 5.5% to HK$4.99.

Zijin Mining slipped 8% after gold prices dropped 0.3% to $966.2 per ounce.