China Poperty Stocks Weak; Trinity IPO

123jump.com Staff
03 Nov, 2009
New York City

Stocks in Hong Kong and Shanghai are expected to trade higher at the opening after the surge in gold prices and merger deals of $48 billion. Property stocks in Hong Kong declined. China Merchants Securities was approved for its initial public offering in Shanghai.

[R]6:00 AM Hong Kong – Stocks in Hong Kong and Shanghai are expected to trade higher at the opening after the surge in gold prices and merger deals of $48 billion. Property stocks in Hong Kong declined. China Merchants Securities was approved for its initial public offering in Shanghai.[/R]

Merger deals worth $48 billion drove U.S. indexes higher but European markets closed lower after UBS AG reported its fourth quarterly loss and UK offered second bailout to RBS and Lloyds Banking Group.

In Tuesday’s trading, Hang Seng index in Hong Kong decreased 380.13 or 1.76% to 21,240.06, and CSI 300 index in China closed higher 42.62 or 1.26% to 3,435.42.

The IMF lifted its economic outlook for Hong Kong and revised its forecast for the economic contraction this year to 2% and expansion of 5% in 2010. Hong Kong is scheduled to release its third quarter GDP data on November 13.

Hong Kong property sales in October declined to HK$36.3 billion from HK$56.2 billion a year ago according to the data released by the Land Registry. The number of properties sold decreased to 9,300 from 12,285 a year ago month.

Xinhua News Agency reported that China Construction Bank estimated fourth quarter economic growth to exceed 10% on higher domestic spending and export orders.

Shanghai Securities News estimated that new loans of Rmb 400 billion were approved in October and the news was first reported by Reuters.

Hong Kong, Shanghai Movers

Property developers closed lower for the second day in a row after the HKMA tightened mortgage lending rules.

Sun Hung Kai Properties Ltd decreased 3.6% to HK$113.60 and New World Development Co declined 2.8% to HK$16.24. Sino Land fell 4.1% to HK$14.10.

Swire Pacific Group Ltd increased 1.1% to HK$96.05 after it confirmed that it is considering to spin-off its real estate development arm.

China Merchants Securities Co was approved by the Shanghai regulatory authority to sell 358.5 million shares in an initial public offering that may raise at least Rmb 9 billion. Everbright Securities Co raised Rmb 11 billion on August 6 after China lifted its eight month suspension to sell new securities.

Trinity Ltd, the menswear retailer in China and a division of clothing manufacturer Li & Fung surged 49% at close to HK$2.46 after rising as much as 82 in intraday trading. Trinity operates its retail chain of 345 stores and distributes menswear through other stores.

Bossini International Holdings Ltd declined 1.3% but Li & Fung added 0.8%.

Gold stocks closed higher after gold price edged up. Zhongjin Gold Corp increased 2.3% and Zijin Mining Group Company increased 1.4%.