Property Stocks Active in China; Air China Down

Mayank Mehta
12 Mar, 2010
New York City

The benchmark indexes in Shanghai and Hong Kong declined. Air China fell after it plans to raise more capital in a stock offering to repay debt. Property developers in Shanghai fell on the worries that tighter regulations may hamper future land sales. But, developers in Hong Kong edged higher.

[R]9:00 PM Hong Kong, China – The benchmark indexes in Shanghai and Hong Kong declined. Air China fell after it plans to raise more capital in a stock offering to repay debt. Property developers in Shanghai fell on the worries that tighter regulations may hamper future land sales. But, developers in Hong Kong edged higher on better 2010 expectations.[/R]

Real estate developers declined after Shanghai Securities News reported that government may increase the deposit requirements for land auctions and also require higher amount homes for low income households.

Hang Seng index in Hong Kong decreased 18.46 or 0.09% to 21,209.74, and CSI 300 index in China lower 43.58 or 1.33% to 3,233.13.

Shanghai Movers

Air China Limited fell 4.1% to 11.16 yuan after the international cargo carrier said it plans to trim its debt through the issue of new shares that may raise as much as 6.5 billion yuan.

Bank of China Limited fell 0.4% to 4.15 yuan.

China Construction Bank Corporation decreased 0.8% to 5.61 yuan.

China Railway Construction Corporation Limited fell 0.5% to 8.39 yuan after the builder of more than half the nation’s rail links since 1949 plans to raise up to 8 billion yuan or $1.2 billion through a private placement.

The railroad plans to sell up to 1.035 billion A shares to as many as ten investors including its parent at a minimum of 7.74 yuan a share, according to a Dow Jones report.

CITIC Securities Company Limited decreased 0.4% to 27.71 yuan.

Haitong Securities Company Limited declined 1.3% to 17.07 yuan.

Henan Pinggao Electric Company Limited dropped 0.3% to 15.63 yuan after the company was upgraded to “neutral” from “underperform” at Credit Suisse Group AG.

Poly Real Estate, China Vanke and Gemdale Corp declined at least 0.4% on the prospects of tighter regulations for lending and lad sale.

HK Movers

Cathay Pacific Airways Limited fell 1.0% to 15.32 yuan after the company told CNBC on Friday it will not be participating in Air China''s 6.5 billion yuan or $952.2 million share issue.

Henderson Land Development Company Limited rose 2.7% to HK$54.70 after the company expects to sell HK$10 billion worth of residential units as it forecasts a 15% rise in property prices in the year.

New World Development Company Limited rose 0.7% to HK$15.26.

Shui On Land Limited fell 0.7% to HK$4.04.

Sun Hung Kai Properties Limited added 1.4% to HK$116.20 after the company recommends interim dividend and estimated higher sales in the current year.

Swire Pacific Limited dropped 0.3% to HK$92.25 after the conglomerate said its 2009 net profit more than tripled, helped by revaluation gains in property investments.