Hong Kong and Shanghai Indices Advance

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

Shares in Hong Kong and Shanghai posted gains Monday on the back of encouraging economic reports and government announcements.

[R]6:00AM New York, 6:00PM Hong Kong- China explains auto stimulus plan. China’s individual online customers rise to 150 million.[/R]

The benchmark stock index in Hong Kong rose 3.6%, led by financial stocks after HSBC reiterated that it doesn’t need a bailout to boost its balance sheet.

In Hong Kong trading Hang Seng Index gained 3.6%, or 450.91, to 12,976.71, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, increased 4.4% or 316.83 to 7,599.35. In Shanghai trading CSI 300 index advanced 1.6% or 36.19 to 2,241.61.

Daily turnover on main-board was HK$46.7 billion from HK$43.9 billion on Friday last week.

China Unveils Auto Stimulus Plan

China’s finance ministry reported on Friday the government will give 10% subsidies to rural farmers who buy automobiles, while 13% will be earmarked for rural farmers who purchase motorcycles.

Farmers who buy light trucks will get a 10% discount, with the ceiling subsidies at Rmb5000.

The government will also extend subsidies of Rmb2,000 to replace old three-wheeled vehicles and Rmb3,000 for four-wheeled vehicles, respectively.

Farmers who buy motorcycles from February 1 to January 31 in 2013 will get a 13% of the purchase price back, with ceiling subsidies of Rmb650.

The report notes that every rural household might purchase two motorcycles.

China’s Advertising Revenues Increase 9.1% in 2008

Xinhua News Agency reported today that the country’s State Administration for Industry and Commerce noted yesterday revenues in the advertisement sector increased 9.1% to Rmb189.96 billion in 2008 from a year ago.

Revenues from TV commercials soared 13.2% to Rmb50.2 billion from the previous year and accounted for 26.4% of the total.

According to the report, income from newspaper advertisements increased 6.4% to Rmb34.3 billion.

Foreign-funded advertisement companies increased 27.7% to 737 in 2008 from the comparable year ago period.

China’s Online Banking Customers Rise to 150 million

Peoples Daily Online reported today that China’s Banking Association 2008 Banking Industry Service Improvement Report indicated that individual online banking customers gained 53% from the beginning of 2008 to 148.1 million at the end of the year.

Online corporate banking clients rose by 117% to 4.14 million.

Also electronic bank transactions increased to Rmb301 trillion.

Gainers & Losers

Hong Kong stocks increased 3.6% led by HSBC after the latter indicated that it doesn’t need any bailout funds, raising expectations that the global economy might recover.

HSBC rallied 4.6% to HK$40 and China Life gained 6.5%

Hang Seng Bank rose 5.2% to HK$78.25, Bank of East Asia rallied 10.6% to HK$14.56.

ICBC advanced 3% to HK$3.45 and China Construction Bank rose 2.9%.

Bank of Communications climbed 5.6% to HK$5.12 after Goldman Sachs raised its rating on the stock to """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""neutral"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" from """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""sell"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""". The lender is due to report its results on Wednesday this week.

Foxconn International Holdings advanced 15.4% to HK$2.85 on expectations the global economy will recover. Also Macquarie upgraded the stock to """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""outperform"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" from """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""neutral"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""".