Shanghai Stocks Drops 2.3%, Two-day Drop 7%

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

Agricultural Bank of China to issue Rmb350 billion bonds in 2009. In Shanghai trading stocks fell for the third day in a row and closed down more than 7% for the week. Investors are increasingly revising their economic expectations outlook downward as global economic crisis deepens.

[R]6:00AM New York, 6:00PM Hong Kong - Agricultural Bank of China to issue Rmb350 billion bonds in 2009.[/R]

Market Sentiment

In Hong Kong trading Hang Seng Index declined 0.7% or 83.37 to 12,811.57, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, slipped 1.3% or 92.57 to 6,902.84. In Shanghai trading CSI 300 Index dropped 2.3% or 49.70 to 2,140.49.

Daily turnover on main-board fell to HK$38 billion from HK$39.5 billion yesterday.

HK Economic Crises Worst in Many Years

Xinhua News Agency reported today that the head of Hong Kong Monetary Authority Joseph Yam said in his weekly Viewpoint column the country’s financial crisis as seen in the GDP figures indicates that it is the worst in many years.

Yam said although the country is susceptible to the weakening global economic conditions, China’s mainland will continue to prop up the economy.

Hong Kong’s economy rose 1.7% year-on-year in the third quarter but dropped 2.5% in the fourth quarter.

Agricultural Development Bank to issue Rmb350 billion bonds

Separately the online edition announced that the Agricultural Development Bank of China vice governor Ding Jie said the central bank plans to issue Rmb350 billion financial bonds in 2009, rising 25% year-on-year from last year.

According to the ADBC, the money will be used to expand the coverage of rural credit to support agriculture.

The bank has so far issued Rmb1 trillion worth of bonds.

Gainers & Losers

Hong Kong stocks dipped 0.7% on weak global cues and falling realty stocks on Beijing’s reluctance to introduce a stimulus package for the sector.

China Overseas Land shed 3.4% to HK$10.34 and Guangzhou R&F Properties dropped 9.4% to HK$5.90.

HSBC fell 0.9% to HK$56.95 as investors booked profits ahead of its results next week.

Other financial stocks increased China Construction Bank edged up 1.3% and Bank of China advanced 2.4%.

Maanshan Iron & Steel declined 2.5% to HK$2.30 after the company said it projects its 2008 net profit to drop 71% on rising raw material and fuel prices and provisioned Rmb 1.71 billion to cater for the waning value of its inventory.

Angang Steel plunged 3.4%.

Coal stocks declined. China Shenhua fell 4% to HK$15.40 and China Coal Energy tumbled 3.6% to HK$4.81.