China Auto Sales Surge in January; Stocks Up

123jump.com Staff
09 Feb, 2010
New York City

Shanghai and Hong Kong market indexes closed higher as the prospect of Greece bailout by the EU increased. Auto sales in January nearly doubled. ICBC says it tightened lending to property developers. China Overseas Land inks HK$8 billion loan agreement. China Eastern Air completes restructuring.

[R]11:00 PM Hong Kong, China – Shanghai and Hong Kong market indexes closed higher as the prospect of Greece bailout by the EU increased. Auto sales in January nearly doubled. ICBC says it tightened lending to property developers. China Overseas Land inks HK$8 billion loan agreement. China Eastern Airlines completes restructuring with Shanghai Airlines.[/R]

January sales of cars and vans increased to 1.3 million and including buses increased to a monthly record of 1.66 million vehicles according to China Association of Automobile Manufacturers.

Vehicles sales in the month doubled but industry experts estimate sales to increase 15% in the current year.

Vehicle sales in China surged 46% in 2009 from a year ago after China lowered sales tax on smaller cars and offered incentives to rural buyers.

Hang Seng index in Hong Kong increased 239.39 or 1.22% to 19,790.28, and CSI 300 index in China higher 18.20 or 0.58% to 3,169.19.

Semiconductor Manufacturing International Corp, China’s largest chipmaker reported fourth quarter loss of $482.3 million compared to $139.5 million a year ago quarter.

The chipmaker booked $299.7 million one-time charge to settle a legal claim with Taiwan Semiconductor Manufacturing Co.

Gross profit in the fourth quarter was $35.3 million compared to $2.7 million in the third quarter and a loss of $74.6 million a year ago.

The company forecasted current quarter revenue to increase between flat and 2%.

Shanghai Movers

China Construction Bank Corporation closed unchanged at 5.55 yuan.

China Oilfield Services Limited the oilfield contractor fell 0.7% to 15.17 yuan.

COSCO Shipping Co., Ltd rose 0.4% to 9.74 yuan.

Haitong Securities Company Limited the listed brokerage rose 0.9% to 17.03 yuan.

Industrial and Commercial Bank of China Limited increased 0.6% to 4.83 yuan after the listed lender said it will halt lending to property developers that are hoarding land and may even call back some loans.

HK Movers

China Eastern Airlines Corporation Limited fell 0.3% to HK$2.60 after the carrier said it completed restructuring with Shanghai Airlines.

China Overseas Land & Investment Limited gained 3.0% to HK$14.44 after the real estate subsidiary of China Overseas Holdings Ltd, said that it has signed a five-year syndicated loan agreement worth HK$8 billion with ten banks. The news was first reported by Reuters and later confirmed by 123jump.com sources in Hong Kong.

China Power International Development Limited rose 0.5% to HK$1.92.

Great Wall Motor Company Limited, the automaker decreased 2.3% to HK$10.84.

Semiconductor Manufacturing increased 4.7% to 67 HK cents ahead of earnings results.