China Trade Suprlus Shrinks; Property Prices Up

Mayank Mehta
10 Mar, 2010
New York City

China

[R]9:00 PM Hong Kong, China – China’s exports and imports in February gained at a slower pace than in January and trade surplus declined to a one-year low. The surplus in the first two months dropped 50%. Bank of China sees new loans to increase 10% in the year around. Residential and commercial property prices increased 10.7% in the month from a year ago.[/R]

Chinese exports in February surged 45.6% from a year ago and imports increased 45% according to the latest data from the customs bureau. The deficit in the month declined to $7.6 billion, a one-year low.

The trade surplus in the first two months declined 50% to 422 billion according to the General Administration of Customs. The stimulus spending has kept up the demand of oil, iron ore and other commodities to build infrastructure.

Trade with the EU increased 35% to $66 billion, with U.S. increased 25% to $49 billion in the first two months according to the GAC and with India surged 75% to $9 billion.

Several economists are projecting China’s trade surplus in the current year to decline to less than $120 billion as the nation drives up imports to meet the domestic demand.

Separately, commercial and residential property prices increased 10.7% in the month in 70 cities according to the statistics bureau.

New home prices increased 13% from a year ago and 1.3% from January and prices in Haikou soared 51% and in Sanya surged 49.3%.

Hang Seng index in Hong Kong increased 0.74 to 21,208.29, and CSI 300 index in China lower 26.17 or 0.8% to 3,279.69.

Shanghai Movers

Baoshan Iron & Steel Co., Ltd added 1.3% to 8.53 yuan and the company may post at least a 20-fold profit gain for its first quarter because of strong demand from automakers, China International Capital Corp. said and quoted by Reuters.

Chongqing Changan Automobile Company Limited dropped 2.3% to 6.33 yuan after the auto maker, announced on Monday that its net profit for 2009 increased over 40-fold to 1.08 billion yuan from 24.38 million yuan a year ago.

Faw Car Co., Ltd declined 3.0% to 23.30 yuan.

Gemdale Corporation decreased 0.07% to 13.76 yuan after the real estate developer said full year revenue rose 23.9% to 12.098 billion yuan. Net profit rose 111.2% to 1.776 billion yuan.

Poly Real Estate Group Co., Ltd dropped 1.8% to 19.91 yuan after the company generated revenues of 1.45 billion yuan in February from sales of 215,500 square meters of property.

Wuhan Iron and Steel Company Limited rose 0.2% to 6.80 yuan after the company plans to integrate its steel units under the listed company.

HK Movers

Bank of China Limited decreased 0.2% to HK$4.00 after the bank said on Tuesday it has no additional fundraising plans after its 40 billion yuan or $5.86 billion convertible bond issue. The bank also estimated loan growth of 10% in the current year.

China Mobile increased 0.1% to HK$74.15 after it agreed to acquire 20% stake in Shanghai Pudong Development Bank Co. for 39.8 billion yuan or $5.8 billion according to a disclosure with the Hong Kong stock exchange.

CITIC Pacific Ltd the state-owned investment company added 4.0% to HK$18.38.

MTR Corporation Limited rose 0.7% to HK$28.75 after the subway operator recommends final dividend.

PCCW Limited rose 4.0% to HK$2.30 after the phone company said full year consolidated profit attributable to equity holders increased by 18% to HK$1,506 million.