Shanghai, Hong Kong Stocks Rise; Land Auction

123jump.com Staff
24 Dec, 2009
New York City

Shanghai and Hong Kong benchmark indexes trade higher. Rising commodities prices lift energy and natural resource and metals processor stocks. In Hong Kong property developers rise ahead of land auction next week. Shanghai stocks rally on a speculation that income tax will be lowered to spur consumption.

[R]8:00 PM Hong Kong – Shanghai and Hong Kong benchmark indexes trade higher. Rising commodities prices lift energy and natural resource and metals processor stocks. In Hong Kong property developers rise ahead of land auction next week. Shanghai stocks rally on a speculation that income tax will be lowered to spur consumption.[/R]

Stocks in Shanghai and Hong Kong gained on the expectations of loose monetary policy and a rise in metal prices.

Hang Seng index in Hong Kong increased 188.26 or 0.88% to 21,517.00, and CSI 300 index in China higher 102.34 or 3.07% to 3,438.82.

Chinese government is looking to lower personal income tax next year to increase domestic consumption, according to a report published in the 21st Century Business Herald.

In 2010 China is expected to have the lowest trade surplus in the last ten years as it increase imports and face softer international demand for its products. The estimates range from a trade deficit of as much as $10 billion to a surplus of less than $20 billion in the year.

HK Movers

Geely Automobile Holdings Ltd soared 7% HK$4.26 after the company and Ford Motor Company agreed on details of the transaction to sell Volvo Car Corp.

Hong Kong based developers are scheduled to bid for land auction controlled by the government next week. According to Lands Department two residential parcels are scheduled to be sold each of 2.09 hectares. Real estate analysts are looking for bids between HK$11 billion and HK$12 billion.

Henderson Land Development Co. added 1.1% to HK$57.65, New World added 1.2% HK$15.78 and Wharf (Holdings) Ltd added 1.4% to HK$43.15.

PetroChina increased 2% HK$9.29

Hontex dropped 8.4% HK$1.97 after it raised HK$997.4 million through the sale of 500 million shares priced each at HK$2.15.

Huaneng Power International Inc added 2.1% to HK$4.39 and it received approval to set up two coal fired power plants.

Ping An Insurance (Group) Co. increased 0.5% to HK$67.10.

Shanghai Movers

China Eastern Airlines Corp increased 1.9% to Rmb 5.89 and the company raised Rmb 6.4 billion through the sale of 1.35 billion shares at Rmb 4.75 each.

China State Construction Engineering Corp increased 1.8% to Rmb 4.61 on the announcement that the parent company plans to acquire additional 2% stake in the company.

Gemdale Corp increased 2.3% to Rmb 13.42 after the company said that the unit o Ping An Insurance Group Co. acquired 49% stake in Shanghai based development project for Rmb 1.6 billion.

Metals related stocks gained after international prices of copper and gold increased. Jiangxi Copper increased 6.3% and Chalco or Aluminum Corp. of China Ltd added 4.4%.

Zijin Mining Group Co. increased 4.7% to Rmb 9.65 and the company agreed to acquire $200 million convertible bonds issued by Swiss commodities trader Glencore International AG.