China Stocks Rebound; China Mobile, ICBC Net Up

123jump.com Staff
20 Aug, 2009
New York City

The benchmark indexes in Shanghai and Hong Kong recovered after banks reported improving margins and higher net lending. Increase in commodities prices also lifted stocks of copper and coal miners. Hong Kong consumer prices declined 1.5% in July. China Mobile profit growth slows.

[R]9:00 PM Hong Kong – The benchmark indexes in Shanghai and Hong Kong recovered after banks reported improving margins and higher net lending. Increase in commodities prices also lifted stocks of copper and coal miners.[/R]

Stocks in Shanghai and Hong Kong surged after Bank of Communications reported better than expected earnings and commodities prices rebounded. Investors cautiously looked for bargains after Shanghai index plunged 20% from its peak on August 4.

Hang Seng index in Hong Kong increased 374.63 or 1.88% to 20,328.86 and CSI 300 index in China higher 129.82 or 4.31% to 3,144.39.

Hong Kong consumer prices in July fell 1.5% from a year ago after dropping 0.9% in June. The government stimulus of HK$87.6 billion is expected to revive local demand and support prices in the last quarter of the year.

Gainers & Losers

Bank of Communications increased 4.4% to 9.19 yuan after it reported first half income of 7.62 billion yuan and said net margins improved in the second quarter.

Industrial and Commercial Bank of China increased 3.3% to 4.75 yuan after it reported first half flat earnings of 66.4 billion yuan on net feees and commissions income increase of 13% to

Haitong Securities Co increased 4.4% to 14.65 yuan after it reported first half profit increased 22% from a year ago period.

Rising commodities prices lifted stocks of coal, copper mining companies and steelmakers.

Shenhua surged 7.9% to 32.50 yuan and China Coal soared 9.6% to 12.64 yuan. Jiangxi Copper increased 4% to 36.70 yuan. Datong Coal Industry surged 8.6% to 39.46 yuan.

Petroleum explorer and refiners increased after crude oil prices surged 4% in New York trading.

China Petroleum & Chemical Corp increased 2.9% to 13 yuan and PetroChina Surged 6.9% to 13.88 yuan.

China Yangtze Power Co. increased 5.4% to 13.49 yuan after the parent company China Three Gorges Project Corp increase its stake in the company to 62.17% from 62.07%.

China Mobile closed unchanged at HK$82.95 and after the close reported first half profit and sales growth slowed.

Earnings Review

Industrial and Commercial Bank of China Limited, the commercial bank reported first-half net interest income fell 12% to Rmb 116 billion from Rmb 131.8 billion a year ago. Net profit in the first-half rose 2.9% to Rmb 66.4 billion or Rmb 0.20 per diluted share compared to net profit of Rmb 64.5 billion or Rmb 0.19 per share a year ago.

Value Partners Group Limited, an investment company reported first-half revenues fell 42% to HK$162.8 million from HK$281.5 million a year ago. Net profit in the first-half rose 228% to HK$116.1 million or HK7.2 cents per diluted share compared to net profit of HK$35.4 million or HK2.2 cents per share a year ago.

Yingli Green Energy Holding Company Limited, the vertically integrated photovoltaic product manufacturers reported second quarter net interest income fell 24.6% to Rmb 1.50 billion from Rmb 1.99 billion a year ago. Net loss in the quarter was Rmb 393.7 million or Rmb 3.03 per ADS compared to net profit of Rmb 203.9 million or Rmb 1.57 per ADS a year ago.

China Mobile Limited, the phone company reported first-half revenues rose 9% to Rmb 212.9 billion from Rmb 195.5 billion a year ago. Net profit in the first-half rose 1.4% to Rmb 55.33 billion or Rmb 2.72 per diluted share compared to net profit of Rmb 54.55 billion or Rmb 2.68 per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 179.41 or 1.76% to 10,383.41, Hang Seng index in Hong Kong increased 374.63 or 1.88% to 20,328.86 and CSI 300 index in China higher 129.82 or 4.31% to 3,144.39. ASX 200 index in Australia increased 3.70 or 0.08% to 4,377.50. The FTSE Bursa KL Composite index in Malaysia closed higher 7.90 or 0.68% to 1,163.43.

The Kospi Index in South Korea increased 30.43 or 1.97% to close at 1,576.39. SET index in Thailand closed higher 9.70 or 1.54% to 640.98 and JSE Index in Indonesia increased 50.89 or 2.23% to 2,328.64. The Sensex index in India increased 202.68 or 1.37% to 15,012.32.