Chinese Surplus Shrinks; Automakers Surge

Mayank Mehta
10 Feb, 2010
New York City

Stocks in Shanghai and Hong Kong closed higher ahead of weeklong Lunar New Year holiday next week. Resource linked stocks and automakers closed higher. Shanghai index for the year is down 9%. China exports surged 21% in January and imports soared 85.5%.

[R]9:00 PM Hong Kong, China – Stocks in Shanghai and Hong Kong closed higher ahead of weeklong Lunar New Year holiday next week. Resource linked stocks and automakers closed higher. Shanghai index for the year is down 9%. China exports surged 21% in January and imports soared 85.5%.[/R]

Stocks in Hong Kong and Shanghai increased after the stocks in resource and auto sector advanced ahead of weeklong holiday to mark the Lunar New Year next week.

Hang Seng index in Hong Kong increased 131.94 or 0.67% to 19,922.22, and CSI 300 index in China higher 44.94 or 1.42% to 3,214.13. Shanghai index has declined 9% for the year so far.

In Shanghai trading, stocks worth 69 billion yuan changed hands and in Hong Kong stocks worth HK$59.6 billion.

Exports and Imports in January Surge

Chinese exports in January increased 21% and imports surged 85.5% from a year ago according to the customs bureau in Beijing today. Exports increased for the second month in a row after dropping for thirteen months straights.

Trade surplus declined to $14.17 billion and several economists are estimating that China may record trade deficit this year.

Seasonally adjusted exports declined 5.5% from December and imports decreased 0.9% in the month.

Shanghai Movers

China Dongfanfhong Spacesat Co Ltd increased 10% to 30.20 yuan after it said 2009 net income increased 12% from a year ago.

China Life increased 1.9% to 27.40 yuan and Ping An Insurance (Group) Co. added 2.7% to 50.02 yuan.

Automakers gained sharply after January auto sales surged to 1.33 million units and auto and truck sales increased to record 1.6 million vehicles.

CHNTC Jinan Truck Co, the maker of heavy duty trucks increased 2.1% to 27.38 yuan and its parent National Heavy Duty Truck Group sales increased to 16,653 trucks, more than triple a year ago.

Chongquin Changan Automobile Co. added 3.3% to 11.95 yuan and SAIC Motor increased 3.4% to 20.67 yuan.

HK Movers

Bank of China Limited added 1.3% to HK$3.74 after the bank plans to issue 24.93 billion yuan subordinated bonds in the first quarter of this year, a top executive of the biggest Chinese foreign exchange lender disclosed in an interview on February 8.

Cosco Pacific Limited increased 5.4% to HK$11.16 after the company’s stock was to “buy” from “hold” at BNP Paribas.

Semiconductor Manufacturing International Corporation fell 5.9% to HK$0.63 after the chipmaker said it expects first quarter revenue of $333.1 million to $339.8 million.

Baidu, Inc, the Chinese Internet search company said fourth quarter revenues rose 39.7% to Rmb 1.26 billion from Rmb 902.1 million a year ago. Net income in the quarter rose 48% to Rmb 427.9 million or Rmb 12.27 per diluted share compared to net income of Rmb 288.7 million or Rmb 8.31 per share a year ago.

Total revenues for the fiscal year 2009 rose 39% to Rmb 4.45 billion from Rmb 3.20 billion a year ago. Net income for the year rose 42% to Rmb 1.49 billion or Rmb 42.70 per diluted share compared to net income of Rmb 1.05 billion or Rmb 30.19 per share a year ago.