China Markets Fear Loan Growth Decline

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

Banks in Hong Kong and Shanghai trading declined after Chinese loan growth rate was estimated at 22% in the current year, lower from 40% increase in 2008. Metals processors closed lower on a weakness in copper prices. Li & Fung acquires UK based Visage Group.

[R]7:00 AM Hong Kong, China – Banks in Hong Kong and Shanghai trading declined after Chinese loan growth rate was estimated at 22% in the current year, lower from 40% increase in 2008. Metals processors closed lower on a weakness in copper prices. Li & Fung acquires UK based Visage Group.[/R]

The benchmark index in Shanghai and Hong Kong declined more than 1.45% after Industrial Bank estimates a sharp decline in new loan growth in the current year.

Banks declined after the loan growth rate was estimated at 22% compared to 40% in 2009.

Hang Seng index in Hong Kong decreased 301.01 or 1.44% to 20,575.78, and CSI 300 index in China lower 84.51 or 2.53% to 3,250.57.

The Shanghai index has declined 7.7% in the year so far.

Shanghai Movers

China Merchants Bank Co. Chairman Qin Xiao said yesterday that interest rates and bank reserve ratios are expected to rise.

Industrial Bank Co., Ltd fell 2.3% to 34.80 yuan after the commercial bank announced that the company will pay cash dividend of 5 yuan (before tax) to shareholders for every 10 shares hold.

The bank also estimated loan growth in China will decline to 22% increase from the 40% surge in 2009.

Poly Real Estate dropped 2.4% to 19.18 yuan and China Vanke dropped % to 9.40 yuan.

Lianyungang Ideal Group Co., agro processor declined 6.1% to 8.77 yuan after the company said that 109.7 million shares held by founders and others will be allowed to trade from tomorrow.

Xinjiang Goldwind Science & Technology Co. increased 2.7% to 34.30 yuan after it reported 2009 sales increases 66% and net soared 93% to 1.75 billion yuan.

HK Movers

Cheung Kong Infrastructure Holdings Limited rose 1.0% to HK$29.65 after the utilities and roads builder announced full year net profit increased 26%.

China Construction Bank Corp declined 2.9% to HK$5.96.

China Mobile dropped 2.4% to HK$72.85 after Chairman Jianzhou confirmed that the mobile telecom operator is looking to invest in Shanghai Pudong Development Bank Co.

Hong Kong Exchanges and Clearing Limited fell 2.2% to HK$129.80 after the operator of Asia’s third largest stock market reported a net profit of HK$1.23 billion ($158.5 million) for the three months to December.

Industrial and Commercial Bank of China Limited decreased 2.7% to HK$5.75 after the lender will launch a tender to buy the shares it does not own in Thailand''s ACL Bank between March 9 and April 16, the Thai regulator said.

Li & Fung Limited rose 1.8% to HK$38.65 and the company acquired the entire issued share capital of Visage Group Limited, a UK-based designer and distributor of fashion wear for men, women and children, for approximately £173 million.