China Southern to Raise $1.6 B; Stocks Rise

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

Stocks in Hong Kong surge tracking gains in the U.S. markets after unemployment was unchanged in February at 9.7%. China Southern Airline plans to raise 10.75 billion yuan to repay some of its 60 billion yuan debt. ICBC said 2009 loan growth was the fastest in three years.

[R]9:00 PM Hong Kong, China – Stocks in Hong Kong surge tracking gains in the U.S. markets after unemployment was unchanged in February at 9.7%. China Southern Airline plans to raise 10.75 billion yuan to repay some of its 60 billion yuan debt. ICBC said 2009 loan growth was the fastest in three years. Shell and PetroChina bid $3 billion Arrow Energy Ltd in Australia.[/R]

Stocks in Hong Kong surged after the U.S. employment report suggested stable employment environment. Stocks in Shanghai closed higher on the expectations that banks will not be asked tighten more to curb a surge in real estate lending

Hang Seng index in Hong Kong increased 408.90 or 1.97% to 21,196.87, and CSI 300 index in China higher 26.41 or 0.81% to 3,286.18.

China Southern Airlines Co. plans to raise 10.75 billion yuan through the sale of new shares to repay debt of 60 billion yuan. The indebted airlines stock has been suspended since Feb 23.

The largest airline in China is expected to issue 1.77 billion in new shares at 5.66 yuan to key investors including the parent China Southern Air holding Co.

Shanghai Movers

China Eastern Airlines Corporation Limited added 3.8% to 7.05 yuan after the carrier expects passenger numbers to rise more than 20% this year, Chairman Liu Shaoyong said today.

Datang International Power Generational Co. Ltd rose 0.6% to 8.35 yuan.

Industrial and Commercial Bank of China Limited rose 0.4% to 4.86 yuan after the lender said its 2009 loans grew at the fastest pace since its IPO, reflecting a broader lending boom fuelled by Beijing''s economic stimulus package.

PetroChina Company Limited rose 0.3% to 12.85 yuan after the oil company and Royal Dutch Shell Plc and made an offer of A$3.3 billion ($3 billion) to acquire Arrow Energy Ltd. in Australia.

Ping An Insurance (Group) Company of China, Ltd added 1.4% to 46.16 yuan after the insurer said on Friday it was not concerned about a plan by Britain''s Prudential to buy the Asia assets of U.S. insurer AIG, the market leader among foreign insurers in China.

SAIC Motor Corporation Limited rose 0.1% to 21.99 yuan after the carmaker expects its sales to increase by over 10% this year, sharply lower than its growth in 2009.

HK Movers

Aluminum Corporation of China Limited the maker of the lightweight metal increased 4.0% to HK$8.19.

China COSCO Holdings Company Limited added 3.6% to HK$10.90 and COSCO (Zhoushan) Shipyard Co., Ltd. reported on Friday that it had delivered a 57,000 dwt bulk carrier to a subsidiary of China COSCO Holdings Company Ltd.

China Resources Land Limited climbed 1.2% to HK$16.48.

Cosco Pacific Limited the container terminal operator gained 5.5% to HK$13.22.

Cnooc Ltd the producer of offshore crude oil and natural gas added 2.4% to HK$12.64.

Jiangxi Copper Company Limited increased 3.9% to HK$16.96 after the producer of the metal said that its refined copper output is expected to reach 900,000 tons this year according to several reports on Dow Jones and Bloomberg news.