Chinese Property Sales Drive Stocks Higher

123jump.com Staff
24 Jul, 2009
New York City

Home builders, energy companies and resource stocks continued their ascent after Chinese regulators did not revised the mortgage rules for second homes. Separately, statistics bureau in Beijing reported that property sales in China increased 53% in June from a year ago.

[R]7:00 PM Hong Kong, 7:00 AM New York – Home builders, energy companies and resource stocks continued their ascent after Chinese regulators did not revised the mortgage rules for second homes. Separately, statistics bureau in Beijing reported that property sales in China increased 53% in June from a year ago.[/R]

Hang Seng index in Hong Kong increased 165.09 or 0.83% to 19,982.79 and CSI 300 index in China higher 15.59 or 0.43% to 3,667.56.

The Hang Seng index briefly increased 1.2% to 20,063.93, reaching above 20,000 for the first time since September of last year.

Gainers & Losers

Foxconn dropped 7.1% to HK$5.23 after it estimated net loss in the first half and said that certain international assets may be impaired. The company blamed the shortfall in the release on, “primarily attributable to lower demand and pricing for the Group’s products due to the global economic downturn, reduced foreign exchange gain as well as impairment on assets.”

Higher than expected June home sales in the U.S., lifted the stocks of Li & Fung and Techtronic Industries. Techtronic Industries surged 8.1% to HK$7.35 and Li & Fung increased 1.1% to HK$24.10.

China Overseas Land & Investment Ltd increased 3% to HK$18.38 and China Resources Land Ltd increased 4.8% to HK$17.60 after the Chinese regulatory agency said that down payment for second homes have been not been increased from 40% requirement.

China Yurun Food Group plunged 12% to HK$12.58 after the company plans to sell as much as 130 million new shares to raise HK$1.68 billion. The new shares represent 8.5% of the issued share and each will be priced at HK$13.23 or 7.5% discount to the closing price of July 23.

Bank of East Asia increased 2.6% to HK$25.75 and BOC Hong Kong Ltd increased 4.1% to HK$16.18. The second day gain in bank stocks followed the settlement with the HK Monetary Authority that required sixty banks to pay at least 60 cents on a dollar to the holders of Lehman issued minibonds.

China Coal Energy increased 6.6% to 16.39 yuan and China Shenhua Energy Company surged 6.2% to 40.07 yuan. Bloomberg News quoted China International Capital saying that coal prices in China will increase 5% in 2010 compared to its previous estimate of 5% decline.

PetroChina added 5.4% to 16.18 yuan and Sinopec increased 3.5% to 14.27 yuan.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 151.61 or 1.55% to 9,944.55, Hang Seng index in Hong Kong increased 165.09 or 0.83% to 19,982.79 and CSI 300 index in China higher 15.59 or 0.43% to 3,667.56. ASX 200 index in Australia increased 25.70 or 0.63% to 4,089.80. The FTSE Bursa KL Composite index in Malaysia closed higher 3.73 or 0.32% to 1,155.88.

The Kospi Index in South Korea increased 6.10 or 0.41% to close at 1,502.59. SET index in Thailand closed higher 2.05 or 0.33% to 614.24 and JSE Index in Indonesia increased 24.94 or 1.15% to 2,185.65. The Sensex index in India increased 147.92 or 0.97% to 15,378.96.