China Exports Plunge 26%

123jump.com Staff
11 Mar, 2009
New York City

Hong Kong stocks rose 2% buoyed by a media report suggesting Citigroup has been profitable in the first two months of the year. However, Shanghai stocks tumbled after exports from China dropped sharply in February. Exports fell 25.7% to $64.9 billion in February from the same period a year ago.

[R]6:00AM New York, 6:00PM Hong Kong - China’s exports decline 25.7% to $64.9 billion in February. China urban fixed investment increase 26.5% to Rmb1.02 trillion in Jan, February.[/R]

Hong Kong stocks rose 2% buoyed by a media report suggesting Citigroup has been profitable in the first two months of the year.

However, Shanghai stocks tumbled after China’s exports dropped sharply in February.

In Hong Kong trading Hang Seng Index increased 2% or 236.61 to 11,930.66, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, advanced 1.9% or 127.07 to 7,007.74. In Shanghai trading CSI 300 Index lost 0.9% or 20.40 to 2,220.38.

Exports Fall 25.7% in February

China’s General Administration of Customs said yesterday the country’s exports fell 25.7% to $64.9 billion in February from the same period a year ago and imports slipped 24.1% to $60.1 billion.

The trade surplus shrank to $4.84 billion as a result.

In the period, exports of coal tumbled 41.6% to 5.11 million tons and steel exports dropped 52% to 3.47 million tons.

In addition, garment and accessory exports slipped 11% to $14.62 billion and toy exports tumbled 17.1% to $850 million.

Total foreign trade dropped 24.9% to $125 billion in the review period.

Urban Fixed Investment Up 26.5%

National Bureau of Statistics reported today that the country’s urban fixed investment advanced 26.5% to Rmb1.02 trillion in the first two months of the year from a year ago.

HK MTR Revenue Increases 64.9% in 2008

Hong Kong Mass Transit Railway of Hong Kong reported yesterday that its revenue increased 64.9% to HK$17.6 billion in 2008 as fare revenue climbed 61.2 to HK$11.5 billion.

Property development profit declined 43.8% to HK$4.67 billion.

Corporate chief executive officer Chow Chung-kong said revenues were driven by the rail merger despite the inauspicious financial environment.

“The rail merger was successfully implemented, and we delivered on all of the promises we made to our passengers and stakeholders. In addition, we achieved synergies of over HK$350 million in 2008 ahead of schedule. The rail merger has made MTRC a stronger company with confidence to face the future,” said Chow.

Gainers & Losers

Hong Kong stocks increased led by financial stocks after U.S. lender Citigroup said after five consecutive quarterly losses, the bank had been profitable in the first two months of 2009.

HSBC gained 2.3% to HK$38.45 from a high of 11.7% as investors took positions ahead of the company’s $18 billion cash call.

BOC Hong Kong increased 2.3% and Hang Seng Bank edged up 5.5% to HK$72.10.

Airline Cathay Pacific Airways Ltd increased 5.9% to HK$7.41 after its record loss in 2008.