Indexes in Shanghai, HK Diverge; Cosco Offering

Mayank Mehta
16 Mar, 2010
New York City

Stocks in Shanghai traded higher but in Hong Kong declined. Hong Kong government plans to release 4,000 apartments to cool property prices. Property developers declined in Hong Kong. Cosco Shipping Co. filed to raise $580 million to pay for twenty new ships. Coal prices decline for the sixth week.

[R]7:00 AM Hong Kong, China – Stocks in Shanghai traded higher but in Hong Kong declined. Hong Kong government plans to release 4,000 apartments to cool property prices. Cosco Shipping Co. filed to raise $580 million to pay for twenty new ships.[/R]

Hong Kong benchmark index decreased for the third day in a row in a directionless trading. Property developers were weak after the local government said it may sell by June 4,000 homes to cool the property market.

Hang Seng index in Hong Kong decreased 56.17 or 0.27% to 21,022.93, and CSI 300 index in China higher 20.79 or 0.65% to 3,203.97.

China may pursue trade sanctions and urged world iron ore miners to keep the interests of largest iron ore buyers in mind when negotiating the next round of price increase.

Ministry of Commerce spokesman Yao Jian told reporters in Beijing today that China is prepared to take actions to maintain the price stability.

Chinese steelmakers prefer annual price discussion and not the quarterly price increases as requested by the world’s largest mining companies including Australia based BHP Billiton and Rio Tinto Group and Vale SA of Brazil.

Shanghai Movers

Bank of China Limited rose 0.4% to 4.14 yuan after the lender and Temasek Holdings may invest as much as 20 billion yuan or $2.9 billion to build a rural banking business in China according to various press accounts in Hong Kong and Singapore.

China Shenhua Energy Company Limited decreased 1.2% to 27.80 yuan.

China Coal Energy Company Limited declined 0.3% to 11.27 yuan.

Cosco Shipping Co. filed with Shanghai regulators to complete a rights offering to raise 4 billion yuan or $585 million. The shipping company plans to offer three shares for every ten held and use the proceeds to build 20 heavy duty vessels as freight rates recover.

GD Midea Holding Co rose 1.2% to 20.18 yuan after the household electrical appliance maker said net income rose 85% to 1.89 billion yuan.

Suning Appliance Co., Ltd rose 1.6% to 18.00 yuan after the electronics retailer announced that its board has approved the yearly cash dividend of 0.05 yuan per share (before tax) for 2009.

HK Movers

BYD Company Limited increased 8.1% to HK$74.70 after the maker of batteries and cars will establish a sales headquarters in the United States said Wang Chuanfu, board chairman and president of company, on Monday.

China Shenhua Energy Co. declined 2.7% after a weakness in coal prices persisted for nearly two months.

China Shineway Pharmaceutical Group Ltd surged 12.0% to HK$20.50 after the manufacturer of Chinese medicines was upgraded to “buy” from “neutral” at Goldman Sachs Group Inc.

Sino-Ocean Land Holdings Limited dropped 3.1% to HK$7.18 after the developer of residential, office and commercial property said it bought a site in Beijing for 4.08 billion yuan in an auction, which it will develop into a mixed-use residential project.

Sun Hung Kai Properties Ltd decreased 1.6% to HK$114.30, Cheung Kong Holdings Ltd dropped 1.1% to HK$97.10 and Hang Lung Properties Ltd declined 0.8% to HK$31.05.

Towngas China Company Limited closed unchanged at HK$3.57 after the supplier of gas recommends final dividend.