Chinese Stocks Mixed; Auto Sales Surge

Darlington Musarurwa
11 Jan, 2010
New York City

Chinese stocks were mixed but ahead of earnings appeared to be ready for another leap. 2009 auto sales surged 46% to 13.4 million units on government incentives. Chinese exports also gained 17.7% from a year ago and surpassed Germany to be the largest exporter in the world.

[R]6:00 AM New York, 6:00 PM Hong Kong – Chinese stocks were mixed but ahead of earnings appeared to be ready for another leap. 2009 auto sales surged 46% to 13.4 million units on government incentives. Chinese exports gained 17.7% from a year ago and surpassed Germany to be the largest exporter in the world.[/R]

Hong Kong and Chinese stocks rose after Beijing regulators approved first index futures, margin trading and short sale. Property stocks faced another day of sell-off after regulators look for more ways to curb speculation.

Chinese exports surged to a record high surpassing Germany to be the top exporter in the world.

Shipping and port operating companies gained. Financial and brokerage firms rose.

In Hong Kong trading Hang Seng Index rose 0.5% or 114.77 to 22,411.52, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, advanced 0.6% or 14.73 to 13,119.03. In Shanghai trading, CSI 300 Index increased 0.1% or 1.92 to 3,482.05.

Daily turnover on main-board increased to HK$74.18 billion from HK$71.9 billion on Friday.

China Leads World Exporters, 17.7% Surge

People’s Daily Online reported that China Customs Office said yesterday the country’s exports rose 17.7% in December from a year ago to $130.7 billion and imports soared 56% to $112.3 billion.

For the year exports fell 16% to $1.2 trillion and imports declined 11.6% to $1.006 trillion.

Germany foreign trade organisation forecasts the country’s exports of $1.17 trillion for 2009.

Imports advanced 55.9% led by record imports of soybeans, crude oil and other items. Crude oil imports jumped 13.9% to 203.4 million tons.

Overall trade surplus shrank 4% in December from a month earlier, but the trade surplus dropped 34.2% to $196 billion in 2009. It’s first decline since 2003 when it shrank 16%.

Exports to EU region fell 19% to $236 billion and to the U.S. decreased 12.5% to $221 billion.

China Fiscal 2009 Revenue to Surpass $1trillion

Xinhua News Agency reported that China’s finance minister Xie Xuren said yesterday the country’s fiscal 2009 revenue will rise 11.7% to Rmb6.85 trillion (just over $1 trillion).

Budget of public investment in 2010 from central government is likely to rise Rmb572.2 billion to Rmb992.7 billion.

Xie said China’s central government is expected to fulfil its target of adding Rmb1.18 trillion for public investment between fourth quarter 2008 and 2010.

According to the report, it is estimated that the central government allocated Rmb503.8 billion more from the 2008 budget at Rmb924.3 billion.

Shanghai Movers

Brokerage firms rose in China. CITIC Securities rose 3.6% to Rmb33.42 and Haitong Securities increased 1.1% to Rmb19.13.

Financial stocks advanced. Industrial and Commercial Bank of China advanced 1.3% to Rmb5.30.

Realty stocks fell on concern China will take additional measures to rein in asset prices. China Vanke decreased 1.6% to Rmb10.18.

Automakers declined after auto sales are expected to slowdown in 2010. The government tax incentives and one time stimulus lifted auto and truck sales to 13.4 million units, the largest in the world. Sales increased 46% from a year ago.

SAIC Motors Corp declined 2.4% to Rmb22.38 and Chongquing Changan Automobile Corp declined 2.5% to Rmb12.23.

HK Movers

Commodity and energy stocks rose expectations the global economy will recover. Gold prices advanced 1.6% to $1,137 per ounce and crude oil prices climbed 1.3% to $82.8 per barrel.

China Cosco Holdings edged up 6.8% to HK$11.02 and Cosco Pacific gained 6.9%.

Aluminum Corporation of China Limited advanced 6.9% to HK$10.64 after the producer of the metal announced that it has increased the price of spot alumina by 7.1% to Rmb 3,000 per ton from Rmb 2,800 per ton.

China Everbright Limited the mainland Chinese brokerage added 9.3% to HK$22.25.

China Merchants Holdings (International) Co. Ltd an investment company gained 5.3% to HK$27.80.

Greentown China Holdings Limited decreased 4.3% to HK$11.06 after the mainland developer signed with Beijing Urban Construction Group to acquire its 40% stake in Zhongji Real Estate Development for Rmb 250 million.

Orient Overseas (International) Limited surged 10.8% to HK$46.85 after exports gained ad brokerages raised price estimate.

Brokerage stocks also rose in Hong Kong. Shenyin Wanguo climbed 8.1% to HK$4.65 and Tanrich Financial Holdings gained 15% to HK$0.238.

First Shanghai Investments increased 17.6% to HK$1.67.

Zijin Mining Group Co., Ltd rose 1.9% to HK$8.01 after the gold producer’s bid for Indophil Resources NL was approved by the Australian regulatory agency.

Zhaojin Mining Industry Company Limited the gold miner added 2.9% to HK$17.30.