Stocks in Shanghai, HK Rebound; Chalco Loss

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

Stocks in Shanghai rebounded after comments from central bank official suggested that interest rate hikes are not imminent. ICBC plans to raise as much as $3.7 billion to replenish its capital base after loan growth surges. Chalco reported fourth quarter loss of $160 million.

[R]5:00 AM Hong Kong, China – Stocks in Shanghai rebounded after comments from central bank official suggested that interest rate hikes are not imminent. ICBC plans to raise as much as $3.7 billion to replenish its capital base after loan growth surges. Chalco reported fourth quarter loss of $160 million.[/R]

Stocks in Shanghai and Hong Kong rebounded after People’s Bank of China Deputy Governor Zhu Min said that current measures to balance liquidity measures are “carefully managed” and are “working well.”

Hang Seng index in Hong Kong increased 274.56 or 1.32% to 21,053.11, and CSI 300 index in China higher 45.87 or 1.42% to 3,275.00.

The central bank official comments lifted property developers and banks.

After the market close Aluminum Corp of China Ltd reported fourth quarter loss of 1.1 billion yuan or $160 million. Chalco gained 0.6% in Hong Kong and 1.1% in Shanghai before the release of earnings.

Shanghai Movers

China Railway Group Limited advanced 0.5% to 5.70 yuan after the railway builder had won an Indonesian coal transport contract worth $4.8 billion.

China XD Electric Co., Ltd rose 1.3% to 7.49 yuan after the maker of electricity transmission and distribution equipment was upgraded to “hold” at BOC International (China) Ltd.

China Jiang Shipping Group Phoenix Co. surged daily limit of 10% to 6.44 yuan after Sina.com cited deputy director Xu Xianping of National Development and Reform Commission and said China plans to accelerate the development of transportation along Yangtze River.

Datang International Power Generational Co. Ltd rose 0.6% to 8.15 yuan.

Hua Xia Bank Co., Limited gained 5.8% to 12.25 yuan after the bank announced that the company will pay cash dividend of 1.3 yuan to shareholders for every 10 shares held.

Industrial and Commercial Bank of China Limited added 0.6% to 4.90 yuan after the commercial bank said 2009 net interest income fell 6.5% to 245.8 billion yuan from 263.0 billion yuan a year ago. Net profit in the year rose 16% to 128.6 billion yuan or 0.39 yuan per diluted share compared to net profit of 110.8 billion yuan or 0.33 yuan per share a year ago.

The bank is preparing to raise 25 billion yuan or $3.65 billion to replenish its capital base and fund loan growth in the next five years. The timing of the sale surprised analysts and the bank is estimated to have sufficient capital.

PetroChina Company Limited rose 0.9% to 12.77 yuan after the oil company said it agreed to contribute 9.62 billion yuan to its parent''s finance unit, raising its stake in the unit to 49% from 7.5%.

Poly Real Estate gained 2% to 20.20 yuan and Gemdale Corp increased 3% to 13.78 yuan.

Shanghai Construction Ltd., Co rose 1.3% to 14.01 yuan after the company was downgraded to “hold” from “buy” at BOC International (China) Ltd.

HK Movers

Bank of China Limited rose 1.5% to HK$4.00.

Cheung Kong (Holdings) Limited the real estate company rose 2.0% to HK$99.95.

China Construction Bank Corporation fell 0.4% to HK$6.08.

Giordano International Limited surged 12.1% to HK$2.77 after the clothing retailer was upgraded to “overweight” from “underweight” by JPMorgan Chase & Co.

Kingsoft Corporation Limited rose 1.9% to HK$6.22 after the online-game software company recommended final dividend.