China Region Stocks Rise; Greens IPO

Darlington Musarurwa
06 Nov, 2009
New York City

Stocks in Hong Kong tracked gains in New York. Shanghai investors focused on the domestic economic growth. Automakers in Shanghai jumped on the talks of steady economic growth. Greens Holdings Ltd on it first day of trading in Hong Kong gained 12%.

[R]6:00AM New York, 6:00PM – Stocks in Hong Kong tracked gains in New York. Shanghai investors focused on the domestic economic growth. Automakers in Shanghai jumped on the talks of steady economic growth. Greens Holdings Ltd on it first day of trading in Hong Kong gained 12%.[/R]

Hong Kong stocks increased on a rally in New York and Shanghai stocks gained on the strong economic outlook.

In Hong Kong trading Hang Seng Index gained 1.6% or 350.64 to 21,829.72, and the China Enterprises of Hong Kong listed mainland shares, or H shares, advanced 1.7% or 211.94 to 13,017.20. In Shanghai trading CSI 300 Index jumped 0.5% or 18.70 to 3,483.12.

Daily turnover on main-board increased to HK$64.43 billion from HK$60.77 billion yesterday.

China Rules Out Second Stimulus

Peoples Daily Online reported today that National Bureau of Statistics chief economist Yao Jingyuan said China doesn’t need a second stimulus package, but to develop and perfect the current package.

China’s CPI and PPI to Grow in 2009

Xinhua News Agency reported today deputy director of the State Council’s Development Research Centre Liu Shijin said China’s macroeconomic policy in 2010 should focus on maintaining steady economic growth and stable prices.

He indicated that Beijing should maintain its proactive fiscal and moderately easy monetary policies in order to spur fast and steady economic development.

CPI is forecasted to moderate at 3% for the first half of 2010.

Gainers & Losers

Automakers in Shanghai increased after Yao comments. Jiangling Motors increased 4.8% to Rmb24.10 and FAW Car increased 3.7% to Rmb21.44.

China Resources Cement added 8.1% to HK$4.14 after Credit Suisse rated the company “outperform” in research coverage.

Greens Holdings Ltd gained 12.3% to close at HK1.82 on its first day of trading. The company placed 300 million shares in initial public offering that prices each share at HK$1.62 to raise HK$409 million or $53 million.

Evergrande Real Estate dropped 2.6% on its second day of trading and Trinity declined 4% on profit taking after a recent rally in the stocks.

Manulife Financial Corp fell 3.1% after the insurer reported a loss of C$172 million in the third quarter ended September.

Bank of East Asia edged up 2.7% on recent news Guoco Group shored up its stake in the bank to 8.01% from 7.99%.

Property stocks gained after falling for more than a week. Sino Land advanced 3.4%.Ply Real Estate Group C increased 1.4% to Rmb16.50.

China Unicom rose 3.3%.

CNOOC rose 3.3% after the oil company decided to acquire stakes in four prospects in the Gulf of Mexico from Statoil of Norway.

Power stocks increased on expectations Beijing will raise power prices next week. China Power climbed 3.7% and Huadian Power rose 5.3%.

Daqin Railway rose 4.5% on the speculation that the company may receive capital injection. The stock was suspended from trading in the afternoon session. Analyst at Orient Securities lifted his outlook to “buy” from “add” according to Bloomberg News.

China Vanke gained 2.8% to Rmb12.10 after it reported ten month sales increased 35% from a year ago.