China Stocks Rebound, Await Political Direction

Mayank Mehta
05 Mar, 2010
New York City

Stocks in Hong Kong surged tracking the gains in New York. Property developers and banks closed higher. In Shanghai trading stocks were subdued awaiting more news from the political convention. FAW Car reported 50% rise in 2009 earnings.

[R]9:00 PM Hong Kong, China – Stocks in Hong Kong surged tracking the gains in New York. Property developers and banks closed higher. In Shanghai trading stocks were subdued awaiting more news from the political convention. FAW Car reported 50% rise in 2009 earnings.[/R]

Stocks struggled in Shanghai but closed higher in Hong Kong. Shipping companies led the gainer in trading after the freight rates futures surged 6% in London trading. China COSCO also surged after the company suggested that the outlook is improving.

Premier Wen Jiabo warned legislators on the dangers of property speculation and pledge to tighten supervision and crack down on wasteful investments by the state controlled entities at the opening of the annual legislative gathering.

Hang Seng index in Hong Kong increased 212.19 or 1.03% to 20,787.97, and CSI 300 index in China higher 9.19 or 0.28% to 3,259.76.

Hong Kong index rallied after U.S. reported a decline in jobless claims and a sharp rise in productivity.

Shanghai Movers

Automakers gained after FAW Car reported net income increased 50% to 1.63 billion yuan. FAW rose 5% to 23.22 yuan and Chongqing Changan Automobiles Co. increased 1.2% to 12.64 yuan.

China COSCO Holdings Company Limited added 2.6% to 13.13 yuan after the shipping company is expected to return to profit in the first quarter as each of its business segments has been improving, a senior executive said.

HK Movers

China Resources Land Limited fell 1.4% to HK$16.18 after the state-controlled developer hired DBS Group Holdings Ltd. to help it get a HK$3 billion ($386 million), five-year loan, according to two people familiar with the matter and reported by Reuters and Dow Jones.

The company was also selected to add in the Hang Seng index as of March 8 and expand the number of companies to 42 from 42.

Esprit Holdings Limited the Hong Kong based apparel retailer fell 0.1% to HK$55.60.

Industrial & Commercial Bank of China Ltd increased 0.3% to HK$5.77 and Bank of China increased 1.3% to HK$3.94.

Li & Fung Limited advanced 2.0% to HK$39.25 after the U.S. reported jobless claims declined in the previous week. The company ships 61% of its garments to the U.S. market.

New World Development Company Limited rose 1.9% to HK$14.90. Hang Lung Properties Ltd advanced 2% to HK$29.95.

PetroChina Company Limited rose 1.9% to HK$8.94 after the company signed a strategic cooperation framework agreement with China Coal Energy, the country''s second-largest coal miner by revenue, in Beijing, sources reported.