China Industrial Production to Rise 16%

Darlington Musarurwa
16 Nov, 2009
New York City

Industrial output in China is expected to rise 16% in November. Foreign direct investment increased 5.7% to $7.1 billion in October. China and Taiwan sign an agreement to increase access to banks, insurance and brokerages.

[R]6:00 AM New York, 6:00 PM Hong Kong - Industrial output in China is expected to rise 16% in November. Foreign direct investment increased 5.7% to $7.1 billion in October. China and Taiwan sign an agreement to increase access to banks, insurance and brokerages.[/R]

Stocks in Hong Kong and China rose boosted by the demand for the renminbi related assets. Asian markets closed higher after 21-member Asia-Pacific Economic Cooperation group agreed to keep economic stimulus in place until the economy recovers to a sound footing.

The U.S. President Obama arrived in Shanghai on Sunday on a four-day state visit.

Hong Kong Monetary Authority today injected HK$3.1 billion to maintain its currency peg with the U.S.

In Hong Kong trading Hang Seng Index rose 1.7% or 390.35 to 22,943.98, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, advanced 2.2% or 289.86 to 13,751.65. In Shanghai trading, CSI 300 Index climbed 3% or 107.08 to 3,625.80.

Daily turnover on main-board increased to HK$76.36 billion from HK$70 billion on Friday.

China and Taiwan signed a memorandum of understanding to broaden access to banks, insurance and other financial services. The agreement that is far reaching and long expected that will increase the flow of capital from Taiwan to mainland China.

TCL Corp, the flat panel monitor maker plans to sell 1.5 billion shares in a private placement and raise as much as Rmb 5 billion and price the offering at no less than Rmb3.46 a share, according to a filing with the Shenzhen stock exchange.

Industrial Production Expected to Rise 16%

Xinhua News Agency reported China’s Minister of Industry and Information Technology Li Yizhong said Saturday the country’s industrial output is forecasted to rise 16% in November and also in December.

Industrial output is projected to rise 10.5% by end of the year. Li noted industrial output growth will assure China’s overall economic growth target of 8% this year.

He added that rising company profits, surging power consumption, and increasing export orders, also pointed to the notable recovery of China''s industrial production.

According to the minister, some companies still face production and operation difficulties.

China’s FDI Jump 5.7% in October

Ministry of Commerce spokesman Yao Jian said today China’s foreign direct investment advanced 5.7% to $7.1 billion in October from the same period a year ago.

Gainers & Losers

Financial stocks gained. HSBC Holdings advanced 2.6% to HK$97.10 after announcing it will sell in European headquarters in London for £773 million.

Industrial & Commercial Bank of China soared 2.4% to HK$6.96 and China Construction Bank rose 3.7% to HK$7.39.

Commodity stocks gained as gold prices gained 0.9% to $1,116 per ounce. Zijin Mining edged up 6% and Jiangxi Copper jumped 11.8%.

CPMC soared 31% from its issue price of HK$5.39 to HK$7.05 on its trading debut.

Tingyi increased 2.7% to HK$18.26 after announcing its third quarter earnings gained 60% to $147.4 million.

Cheung Kong Infrastructure dropped 2.8% on the announcement that it is interested in bidding for an electricity distribution.

Coal stocks gained on speculation prices will rise after the recent heavy snowfall. China Shenhua Energy gained 5.9% to Rmb 37.59, while Yanzhou Coal increased 6.6% to Rmb21.40.

China''s Tongwei rose 10% Rmb10.35.

Airlines increased. Air China climbed 6.8% to Rmb8.96.

Jiangxi Copper increased 6.6% to Rmb42.94 after the prices of copper and other base metals gained on weak dollar.