China Markets Rebound; HSBC Up

Darlington Musarurwa
30 Nov, 2009
New York City

China government officials encourage consumer to spend more and buy new cars and appliances to exchange the old. China also extended vehicle tax rebate program to 2010. HSBC and Standard Chartered Bank increased as Dubai worries ease.

[R]5:00 AM New York, 7:00 PM Hong Kong - China government officials encourage consumer to spend more and buy new cars and appliances to exchange the old. China also extended vehicle tax rebate program to 2010. HSBC and Standard Chartered Bank increased as Dubai worries ease.[/R]

Hong Kong stocks rose as concern over Dubai’s debt problems eased, while stocks in China gained as Beijing reaffirmed its commitment to stimulus measures next year.

China Railway Construction Corp in a filing with the Shanghai Stock Exchange that it has six projects in progress with total value of $91 million and are not connected with Dubai World.

In Hong Kong trading Hang Seng Index rose 3.3% or 687.00 to 21,821.50, and China Enterprises Index of Hong Kong listed mainland shares, or H shares, jumped 4.1% or 508.20 to 12,980.33. In Shanghai trading CSI 300 Index climbed 3.8% or 129.16 to 3,511.67.

Daily turnover on main-board fell to HK$79.84 billion from HK$107.51 billion.

Huaxin Cement lowered its plan to sell 135 million and raise Rmb 2.5 billion compared to its earlier plan in March to sell 200 million shares and raise Rmb 4 billion. The revised offering term also suggest per share price of Rmb 20.49.

Shengli Oil & Gas Pipe Holdings Ltd filed with the Hong Kong Stock Exchange to 720 million shares at a price per share between HK$1.81 and HK$2.69. The offering is managed by Macquarie Group Ltd and the pipe maker plans to use proceeds to expand production and design capacity.

China Angles For Fast Retail Growth in 2010

Xinhua News Agency reported China’s Ministry of Commerce said Saturday the country will strive for higher growth rate of retail sales in 2010.

Vice minister of commerce Jiang Zengwei noted consumption spurred economic recovery this year.

According to the report, Beijing will take additional measures to encourage consumption next year, including introducing the “old-for-new” program to encourage consumers to replace new cars and home appliances.

Vehicle Sales’ Tax Rebates to Extend in 2010

Shanghai Securities News, the online edition noted that China will extend its tax policies encouraging consumers to purchase fuel-efficient vehicles into 2010.

Vehicle purchase taxes in March were halved for vehicles with engines of 1.6 litres and below and are expected to expire on December 31.

Vehicles covered the policy will also be broadened next year, with lower emission vehicles enjoying more tax breaks, or rebates will be based on fuel consumption.

Gainers & Losers

Hong Kong financial stocks gained as worries over Dubai’s debt crisis eased. HSBC jumped 4.3% to HK$90.70.

Standard Chartered gained 4.2% to HK$193.20.

Banks in China also gained on expectations Beijing will maintain stimulus measures. Bank of China climbed 5.8% to HK$4.37, ICBC rose 4.6% to HK$6.55 and China Construction Bank edged up 5.2% to HK$6.90.

The Macau assets of Las Vegas Sands, Sands China Limited dropped to HK$8.78 on its market debut today, 15.4% lower from its issue price of HK$10.38. The Dubai worries affected the trading sentiment.

The casino operator raised HK$19.4 billion ($2.5 billion) to complete its expansion plans.

Wynn Macau soared 3.6% to HK$9.57 and Melco International Development Ltd increased decreased 0.3% to HK$3.81.

SAIC Motor jumped 7.5% to Rmb25.37 and Qingdao Haier soared 10% to Rmb23.49.

Wuliangye Yibin increased 10% to Rmb28.44.

Haitong Securities gained 10% to Rmb6.06 while CITIC Securities rose 6.9% to Rmb29.19.