China Manufacturing Advance Lifts Indexes

Mayank Mehta
01 Apr, 2010
New York City

Stocks in Shanghai and Hong Kong rallied after manufacturing index gained in March. Resource stocks and commodities traded higher. Bright Food Group Co lifted its demand for Australia based CSR Ltd

[R]9:00 PM Hong Kong, China – Stocks in Shanghai and Hong Kong rallied after manufacturing index gained in March. Resource stocks and commodities traded higher. Bright Food Group Co lifted its demand for Australia based CSR Ltd’s sugar division to $1.6 billion.[/R]

Global commodities rally and improved outlook for manufacturing lifted stocks in Shanghai and Hong Kong.

Hang Seng index in Hong Kong increased 297.65 or 1.40% to 21,537.00, and CSI 300 index in China higher 46.33 or 1.38% to 3,391.94.

The seasonally adjusted Purchasing Managers’ Index increased to 55.1 from 52 in February on an increase in exports and sustained demand driven by stimulus.

China is scheduled to release its first quarter economic growth on April 15. The economy expanded at 10.7% in the fourth quarter, the fastest pace since 2007.

Shanghai Movers

China State Construction Engineering Corporation Limited added 1.3% to 4.40 yuan and yesterday in Miami signed a minority stake in Baha Mar Resorts development project to be located on Cable Beach, Bahamas. The deal involves building 3,000 hotel rooms, casino. China Export Import Ban signed the contract on the same day to offer $2.6 billion in financing for the project.

China Vanke Co., Ltd the property business rose 1.1% to 9.01 yuan.

Cosmos Group Co., Ltd the real-estate developer rose 3.0% to 9.62 yuan.

Poly Real Estate Group Co., Ltd rose 3.0% to 21.33 yuan.

Shandong Huatai Paper Co., Ltd the newsprint maker advanced 1.4% to 16.01 yuan.

Sanan Optoelectronics Co Ltd the production and sale of light emitting diode products gained 8.5% to 46.37 yuan.

HK Movers

China Merchants Holdings (International) Co. Ltd fell 0.1% to HK$28.55 after the company recommends final dividend.

CNOOC Limited increased 1.4% to HK$12.94 after the offshore energy explorer had its stock downgraded to “neutral” from “overweight” at HSBC Holdings Plc a day after it reported lower earnings.

PetroChina Company Limited rose 1.5% to HK$9.21.

Yue Yuen Industrial (Holdings) Limited dropped 7.0% to HK$25.10 after the supplier of branded athletic and casual shoes said on Thursday it had entered into agreement with Citibank N.A. for an unsecured loan of up to $300 million raising capital to repay part of existing bank debt.