Thursday, October 8, 2009

Hong Kong Stock Market Wrap Oct. 7th, 2009

IPO: Yuzhou Group, a leading Fujian-based real estate group, plans to go listed on October 20 to raise US$300 million to US$500 million (HK$2.34 billion to HK$3.9 billion). Morgan Stanley is the sponsor of its listing on the Hong Kong bourse. The company has already developed more than 1.5 million square metres residential property in the mainland.

Holdings of Chaoyue Group (147 HK) shares were said to be highly concentrated as the Securities and Futures Commission has recently completed an enquiry into the shareholding of Chaoyue. It is found that more than 95 per cent of the company stake was held by nine shareholders, with only approximately 4.87 per cent of the issued shares were held by other investors. Furthermore, these 95.13 per cent shares held by the 9 shareholders, together with an additional 0.76 per cent shares held by other shareholders were kept outside CCASS, leaving only 4.11 per cent in CCASS, which suggested only a limited amount of shares were readily available for trading on the market.

Li Ka-shing, chairman of Cheung Kong Holdings (1 HK), has increased 500,000 shares holding of Cheung Kong for HK$46.82 million at a price of HK$93.644 per share on October 5, accounting for 40.41 per cent stake in Cheung Kong. This is his eighth time of accumulation since last month.

China Taiping Insurance (966 HK) has gained approval from the court and shareholders on the privatization of Ming An Holdings (1389). Ming An will suspend its trading on October 22 and will be unlisted on November 2.

Far East Golden Resources (1188 HK) has announced that Alabama in US has issued a non-legally binding letter of intent signifying its intention to provide a 3,000 acre megasite property located in Alabama for the development of the Hybrid Kinetic Motors Project. The company expects to complete building a hybrid car plant in the US by the end of 2012 and begin production in 2013.

Rumour has it that Henderson’s (12 HK) luxury residence 39 Conduit Road will be sold at HK$40,000 per square metre, almost hitting the record of HK$41,000 per square meter. Henderson did not comment on the rumour.

HSBC Global Investment Fund (820 HK) announced that HSBC China Dragon Fund has drafted a proposal which allows the buy-back of fund unit in the market. The proposal is subject to fund holders’ approval on a meeting on October 19.

Tycoon Chu Lam Yiu, a large shareholder of Huabao International Holdings (336 HK), has sold 150 million holdings through JP Morgan at a price between HK$7.75 and HK$7.86 for HK$1.178 billion, a 4.5 per cent to 5.7 per cent discount to yesterday’s closing price.

Kam Hing International (2307 HK) has won a bid of exploration licence in an iron ore in Madagascar in Africa. The project will amount to US$120 million and Kam Hing International will inject US$24 million (HK$187.2 million), holding 20 per cent stake in the joint venture set up for this project.

NWS Holdings (659 HK) announced yesterday that its net profit plunged 34 per cent to HK$2.529 billion for the first half, compared with a year ago. Earnings per share were HK$1.23. An interim dividend of HK$0.42 per share was declared. The company said that it has reserved HK$1.6 billion for takeover in the future.

Regal REIT (1881 HK) chairman Lo Yuk-sui has increased his long position in the REIT from HK$2.371 billion trust units (74.21 per cent) to HK$2.373 billion units (74.23 per cent), after acquiring 2.749 million units of the trust on September 29 at HK$1.29 per unit on average.

Taifook Securities (655 HK) has recorded a 61 per cent decline in its net profit to HK$190 million for the first half, compared with a year ago. An interim dividend of 8 HK cents per share was declared. The company has no plan to open any new branch in Hong Kong this year but it will open one or two branches in the mainland, probably at the beginning of next year in Shenyang.

Rumoured has it that Tianneng Power International (819 HK) would place shares to raise HK$420 million at a price ranging from HK$3.50 to 3.80, a 7.5 per cent to 15 per cent discount of its closing price yesterday, sources said. The company plans to place 110 million shares in which about 73 million shares are new shares while 37 million shares are from the major shareholders. It is believed that the company can raise no less than HK$257 million and the major shareholders can liquidate at least HK$130 million.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard