China Stocks Up on Home Prices; China Travel IPO

123jump.com Staff
15 Oct, 2009
New York City

China region stocks maintained upward momentum as home prices gained across the nation and lending increased. Investors are revising earnings expectations higher for the latest quarter. China International Travel surged 45% on its first day of listing.

[R]8:00 AM Hong Kong – China region stocks maintained upward momentum as home prices gained across the nation and lending increased. Investors are revising earnings expectations higher for the latest quarter. China International Travel surged 45% on its first day of listing.[/R]

Stocks in Shanghai and Hong Kong are expected to open higher after the rise of crude oil prices in New York and a weakness in dollar.

Investors around the world are focused on earnings as the companies report generally better than expected earnings. Goldman Sachs earnings surged three fold and Citigroup swung to a net profit.

However, Nokia reported a loss and Accor and Carrefour reported weaker than expected sales. Banks and financial services and industrial companies in India report better than expected earnings. WH Smith and SAB Miller reported earnings that met analysts’ expectations in London.

Xstrata dropped its hostile offer for Anglo American Plc ahead of regulatory deadline set by U.K. Financial Services Agency.

In Thursday’s trading, Hang Seng index in Hong Kong increased 112.60 or 0.51% to 21,999.08, and CSI 300 index in China higher 12.24 or 0.38% to 3,239.64.

Home prices in China increased 2.8% in September across 70 largest cities according to the National Bureau of Statistics.

China Stock Movers

Casino stocks fell sharply after Macao Daily reported that mainland Chinese residents can get travel visa to Macau only once every two months. Casino operators have been expecting at least one visit a month visa.

SJM Holdings Ltd dropped 7.7% to HK$4.07 and Galaxy Entertainment Group Ltd declined 6.4% to HK$3.38. Wynn Macau Ltd fell 6.3% to HK$10.44.

Banks in Hong Kong closed higher after better than expected earnings at several banks in the U.S. Construction Bank increased 1.5% to HK$6.82 and Bank of China increased 1.8% to HK$4.50.

Home builders increased after the release of latest monthly home price index. China Overseas Land & Investment Ltd increased 1.3% to HK$17.48. Poly (Hong Kong) Investment Ltd increased 8.3% to HK$9.30 after it completed HK$3 billion ($385 million) offering.

China International Travel surged 45% to 17.08 yuan on its first day of trading after it raised 2.6 billion yuan in a public offering.

China State Construction Engineering Corp decreased 2.28% to 5.13 yuan after it surged 10% in a rally a day before. Infrastructure and engineering companies have been rising after China released its latest monthly exports and lending data.

SAIC Motor Corp increased 2.6% to 21.20 yuan and Economic Times in India reported that the company is looking to acquire a stake in General Motors India. Auto sales in India have been strong in the last three years.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 178.44 or 1.77% to 10,238.65, Hang Seng index in Hong Kong increased 112.60 or 0.51% to 21,999.08, and CSI 300 index in China higher 12.24 or 0.38% to 3,239.64. ASX 200 index in Australia increased 28.80 or 0.60% to 4,859.90. The FTSE Bursa KL Composite index in Malaysia was higher 0.02 or 0.00% to 1,246.86.

The Kospi Index in South Korea increased 9.90 or 0.60% to close at 1,658.99 SET Index in Thailand closed lower 38.75 or 5.30% to 692.72. JSE Index in Indonesia increased 3.66 or 0.15% to 2,515.38. The Sensex index in India decreased 35.91 or 0.21% to 17,195.20.