Shanghai Stocks Decline; Anhui, Sinoma Soar

Mayank Mehta
01 Feb, 2010
New York City

Stocks in Shanghai dropped on the worries that China will tighten lending conditions after the comments from Deputy Governor of People

[R]9:00 PM Hong Kong, China – Stocks in Shanghai dropped on the worries that China will tighten lending conditions after the comments from Deputy Governor of People’s Bank of China. Cement and building materials makers surged in Hong Kong but steelmakers declined in Shanghai.[/R]

Stocks and commodities in Hong Kong and Shanghai dropped sharply after cautious comments from the Deputy Governor of People’s Bank of China.

Deputy Governor Zhu Min in an interview in Davos, Switzerland suggested that the government is looking to tighten production capacity in steel, copper, cement and industries.

China has provided stimulus of 4 trillion yuan and increased bank lending to 10 trillion yuan and issued municipal bonds of 6 trillion yuan in 2009.

Hang Seng index in Hong Kong increased 121.76 or 0.61% to 20,243.75, and CSI 300 index in China lower 51.45 or 1.61% to 3,152.71.

However, cement makers in Hong Kong trading surged on the news report by Xinhua News Agency that that government is looking to develop rural areas and provide additional loans to farmers.

Shanghai Movers

Beijing Sanyuan Foods Co., Ltd fell 7.6% to 6.93 yuan.

China Pacific Insurance (Group) Co., Ltd increased 2.0% to 22.55 yuan.

China Shipping Development Company Limited dropped 5.0% to 12.64 after the sea-cargo group and China Shenhua Energy Co. said Friday they plan to inject cash totaling 4.60 billion yuan or $672.8 million to a shipping joint venture over four years and expand fleet and repay debt according to a report published by Dow Jones.

Datong Coal Industry Co., Ltd fell 5.7% to 34.28 yuan.

Jiangxi Copper Company Limited fell 3.6% to 32.86 yuan. Hebei Iron & Steel Co. dropped 3.8% o 5.51 yuan after cautious comments from Deputy Governor of People’s Bank of China.

Jiangsu Lianyungang Port Co., Ltd dropped 3.0% to 6.94 yuan.

Maanshan Iron & Steel Company Limited decreased 2.9% to 4.24 yuan and the company plans to issue 1 billion yuan mid-term notes with a term of three years on February 4 according to a report published by Dow Jones.

Ping An Insurance (Group) Company of China, Ltd rose 2.9% to 47.85 yuan.

Sohu.com Inc, an Internet company reported fourth quarter revenues rose 12% to $135.8 million from $121.6 million a year ago. Net profit in the quarter fell 43% to $32.3 million or 76 cents per diluted share compared to net profit of $56.6 million or $1.45 per share a year ago.

Revenues for the full-year rose 4.6% to $177.1 million from $169.3 million a year ago. Net profit for the full-year fell 6.8% to $147.8 million or $3.57 per diluted share compared to net profit of $158.6 million or $4.06 per share a year ago.

Zhuzhou Smelter Group Co.,Ltd the producer of refined zinc dropped 5.4% to 13.26 yuan.

HK Movers

Anhui Conch Cement Co increased 9.3% to HK$47, China National Building Material Co surged 11% to HK$14.38 and China National Materials Co advanced 11% to HK$5.25.

PCCW Limited rose 8.7% to HK$2.23.

TPV Technology Limited added 5.5% to HK$5.15 after the company said its largest shareholder China Electronics Corp may make a bid to acquire the monitor maker for HK$6.6 billion.