Monday, November 23, 2009

Hong Kong Stock Market Wrap Nov. 20th, 2009

IPO: Beijing technology product distributor Futong plans to list on the Hong Kong bourse. It announced yesterday the availability of preliminary prospectuses on the HKEx website. Futong is one of the distributors of IBM and IBM is the largest supplier of the company. Indebted aluminium giant UC RUSAL plans to sell 3 per cent of its stake to Russian state bank VEB for 4 billion roubles to 18 billion roubles (HK$3.8 billion to HK$4.89 billion) this year or next, according to Reuters.

BYD Company (1211 HK) has denied press reports that its subsidiary, BYD (Ningbo) Semi-conductor Company Limited (Ningbo Semi-conductor), is making a monthly loss of 50 million yuan for the next three years. It also plans to delay the launch of its electric vehicle to next year due to the high prices of the vehicles, which are subject to government’s approval.

Gome Electrical Appliances (493 HK) announced that it has repurchased convertible bonds in an aggregate principal amount of 498.4 million yuan by way of an over-the-counter purchase yesterday.

Industrial and Commercial Bank of China (1398 HK) was granted the banking license from Bank Negara Malaysia, the central bank to open a subsidiary bank in Malaysia. The local bank to be established will be the first banking institution ICBC sets up in Malaysia, marking a significant breakthrough in ICBC’s implementation of its globalization strategy. ICBC’s application had been approved by China Banking Regulatory Commission previously.

Losing rights to English football matches from August, Now TV’s parent PCCW (8 HK) said it will reduce monthly fee to HK$98 since June next year.

Mainland insurance giant Ping An Insurance’s (2318 HK) subsidiary Ping An Asset Management has recently gained approval from the government to invest in non-guaranteed debt. It is believed that such investment can improve the company’s rate of return.

China Eastern Airlines (670 HK) announced that its Yunnan unit has recorded a net profit of 263 million yuan for the first ten months. Revenue amounted to 4.271 billion yuan for the period, climbing 14.3 per cent from a year ago.

China Longyuan Power (916 HK), China’s biggest wind power producer, plans to sell its shares at HK$6.26 to HK$8.16 each in its listing on December 10. Roadshow will be held on November 26.

Hong Kong Energy (987 HK) has agreed to buy 25 per cent shares of a project company HKE (Danjinghe) Wind Power Limited from its parent Hong Kong Construction (0190) Limited for 73.5 million yuan.

HSBC (5 HK) has completed a deal to sell its main building in New York to IDB Holding Corp for US$330 million (HK$2.57 billion). According to the announcement released last year, HSBC will leaseback the building for 10 years.

Jia Sheng has posted an interim net loss of HK$6.54 million, against an interim net loss of HK$53 million last year. Sales volume amounted to HK$6.71 million. Loss per share was 0.4 HK cents. No interim dividend was declared.

Pico Far East (752 HK) announced that it has won a bid from Macau to assist in design, execution, project management and maintenance of pavilion in the Expo 2010 in Shanghai for MOP$30 million.

Smartone Telecommunications (315 HK) plans to develop a 3G network in Macau for HK$100 million. The development of 3G network has started since October and is expected to be completed in the second half of next year so that the operator can provide related services in the second half of next year.

Taifook Securities (665 HK), a subsidiary of NWS Holdings Ltd. (0659) has agreed to sell its 373 million shares, or a 52.86 per cent shares, to China’s Haitong Securities Co. at a price of HK$4.88 per share or a total of HK$3.445 billion. NWS Holdings will hold 9 per cent shares of Taifook Securities upon the deal.

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