China Region Stocks Rebound on Earnings

Darlington Musarurwa
28 Jan, 2010
New York City

Stocks in Shanghai increased on the optimism that the U.S. efforts to increase jobs and stimulate economy will increase exports. Stocks rebounded from their lows in the last two weeks. Cathay Pacific expects rise in first quarter passenger numbers.

[R]8:00 PM Hong Kong, China – Stocks in Shanghai increased on the optimism that the U.S. efforts to increase jobs and stimulate economy will increase exports. Stocks rebounded from their lows in the last two weeks. Cathay Pacific expects rise in first quarter passenger numbers.[/R]

Stocks in Hong Kong gained and investors pinned their hopes on President Obama’s call to Congress to stimulate the economy and create more jobs. Domestic earnings also drove the sentiment higher.

Stocks rebounded from their lows of ten days. Port operators, ocean liners and banks traded higher from their more than 10% decline in two weeks of trading.

Hang Seng index in Hong Kong increased 323.30 or 1.61% to 20,356.37, and CSI 300 index in China higher 8.00 or 0.25% to 3,206.57.

China Railway Construction gained after it said 2009 profit surged and

Shanghai Movers

China Southern Airlines Company Limited added 3.3% to 6.10 yuan.

China CITIC Bank Corporation Limited slipped 3.1% to 7.02 yuan.

Gemdale Corporation rose 0.9% to 11.84 yuan after the development and sale of real estate announced that it expects its net profit for fiscal year 2009 to grow by 100%, compared to that of same period last year (RMB 840,859,892.38).

Industrial and Commercial Bank of China Limited fell 0.8% to 4.86 yuan.

HK Movers

Air China Limited the international carrier added 3.8% to HK$6.46.

Bank of China Limited the bank advanced 3.2% to HK$3.79.

Cathay Pacific Airways Limited rose 0.7% to HK$13.00 after its Chief Executive Tony Tyler said Wednesday he expects the first-quarter passenger numbers to rise from a year earlier, according to a report published by Dow Jones.

China Coal Energy Company Limited rose 4.8% to HK$12.16 after the coal miner said its 2009 production increased 8.2%.

China Railway Construction Corporation Limited increased 2.3% to HK$9.95 after the rail road operator estimated 2009 earnings to increase 50% on higher investment in infrastructure and more demand for passenger traffic.

China Shipping Development Company Limited rose 3.9% to HK$12.72 after the company was downgraded to “neutral” from “buy” at Goldman Sachs Group Inc.

Hang Lung increased 3% to HK$27.40 after a broker recommendation.

Geely Automobile Holdings Ltd surged 8.2% to HK$3.56 and the company’s parent is in negotiations to sign a deal with Ford Motor Company to acquire its Volvo unit.