Chinese Investors Focus on Political Convention

123jump.com Staff
03 Mar, 2010
New York City

Property developers in Hong Kong fell as regulators permit banks to charge more for mortgage loans and in China declined as delegates urge for tighter curbs in property markets. Chinese delegates at a communist party political convention are also expected to approve incentives for renewable energy.

[R]6:00 AM Hong Kong, China – Property developers in Hong Kong fell as regulators permit banks to charge more for mortgage loans and in China declined as delegates urge for tighter curbs in property markets. Chinese delegates at a communist party political convention are also expected to approve incentives for renewable energy makers.[/R]

Property developers and banks were in focus on the day when the Chinese People’s Political Consultative Conference started its weeklong annual meeting. Delegates are urging to curb wasteful spending and curb property speculation and new incentives are expected for renewable energy industry.

Real estate investment in China surged to $156 billion in 2009 according to the latest estimate released by New York based Cushman & Wakefield LLP.

Hang Seng index in Hong Kong decreased 29.32 or 0.14% to 20,876.79, and CSI 300 index in China higher 23.84 or 0.72% to 3,335.08.

Stocks in Hong Kong declined but recovered from the lowest levels of the day after the British bank, Standard Chartered reported higher earnings. The bank does most of its business in Asia. Banks gained.

Property developers declined in Hong Kong trading on the worries that more restrictions on lending will slow property sales. ICBC Asia Ltd said that HK Monetary Authority asked banks to price mortgage loans at a higher than required rate.

Shanghai Movers

Renewable energy equipment makers gained.

Shanghai Electric Group Co soared 10% daily limit to 10.34 yuan., Xinjiang Sailimu Modern Agriculture Co. surged daily limit of 10% to 6.85 yuan and Baoding Tianwei Baobian Electric gained 5% to 31.45 yuan.

Property developers declined.

China Merchants Property Developments declined 1.5% to 23.10 yuan and Financial Street Holding Co. dropped 1.1% to 10.84 yuan.

HK Movers

The Bank of East Asia Limited rose 0.3% to HK$28.70 after banks gained on better than expected earnings from Standard Chartered and banks were urged to charge more for mortgage lending.

China Mobile Ltd declined 2.4% to HK74.66 before it announced that the company confirmed that it is in talks with Shanghai Pudong Development Bank Co to build its electronic commerce business.

The largest mobile carrier is planning to buy 2.2 billion shares in the bank for 17.82 yuan each. China Mobile has 256 billion yuan in cash.

China Resources Land Limited decreased 0.8% to HK$16.52.

Hong Kong Electric Holdings Limited fell 2.4% to HK$43.95 after it reported 2009 earnings declined to HK$6.7 billion from HK$8.03 billion a year ago.

MTR Corporation Limited, the railways and related businesses operator gained 2.5% to HK$27.95.

New World Development Company Limited climbed 1.0% to HK$14.86 after the developer won the tender for sites linked to an MTR Corp. subway station. Wheelock Properties, the partner in the project with New World increased 1.5% to HK$4.70.

PetroChina Company Limited rose 0.5% to HK$8.92 after the top oil producer is planning to invest 16 billion yen in Sichuan Province, in a move to boost the oil and gas production in the area.

SOHO China Limited the property developer rose 1.0% to HK$3.9.

Wheelock Properties Limited rose 0.4% to HK$4.65.