Wednesday, December 2, 2009

Hong Kong Stock Market Wrap Dec. 1st, 2009

Shares in Air China (753 HK), the world’s most valuable airline, jumped as much as 10 per cent to a 19-month high yesterday, boosted by speculation that the company would take over Shenzhen Airlines. (Hong Kong Economic Journal P. 4)

Bright Prosperous (753 HK) announced that it has signed an exclusive lumbering contract with a Brazil hydroelectric plant Santo Antonio. The company will have to lumber 200,000 hectares within five years. It is expected to produce 45 million cube meters commercial timbers for domestic sales and exports. (Sing Tao Finance B3)

China Infrastructure Investment (600 HK) has agreed to sell the entire stakes in Pearl Oriental Macau Limited and the shareholder’s loans for HK$400 million. Trading resumes today. (Sing Tao Finance B3)

Country Garden Holdings (2007 HK) has exceeded its annual sales target of 19 billion yuan with 21.2 billion yuan for the period ended November. (Hong Kong Economic Times A12)

Geely Automobile (175 HK), the Chinese car maker picked as preferred bidder for Ford
Motor’s Volvo unit, is seeking at least US$1 billion in loans from mainland banks including Bank of China (3988), China Construction Bank (939) and the Export-Import Bank of China to finance its US$1.8 billion bid, sources said yesterday. Geely spokesman declined to comment on the loan plans. (Sing Tao Finance B3)

Global Bio-Chem Technology (809 HK) expects to record a substantial profit decline as compared with last year, reflecting that the company is adversely affected by the poor economy. (Sing Tao Finance B3)

Global Sweeteners (3889 HK) announced that an observable decline in its net profit is expected on poor economic environment. (Sing Tao Finance B3)

R&F Properties (2777 HK) has reached 98.4 per cent of its annual sales target with 22.6 billion yuan recorded for the period ended November, surging 58 per cent year-on-year. (Hong Kong Economic Times A12)

Henderson Land Development (12 HK) expects to sell at least 7 billion to 8 billion yuan worth of residential property next year on the mainland. Henderson is developing about 10 projects on the mainland while it owns a gross floor area of about 130 million square metres there at present. (Sing Tao Finance B2)

HSBC Insurance Brokers Holdings Limited, an indirectly wholly owned subsidiary of HSBC (5 HK), has agreed to sell HSBC Actuaries and Consultants Limited (HACL) to Jardine Lloyd Thompson Group plc for £27.25 million (HK$ 350 million). (Sing Tao Finance B3)

Industrial and Commercial Bank (1398 HK) and The Bank of East Asia (0023) have agreed to extend the longstop date for completion of certain transactions between them. Referring to its proposed acquisition of 70 per cent stake in The Bank of East Asia (Canada) and disposal of 75 per cent stake in ICEA Finance Holdings Limited, ICBC announced that it has obtained the approvals from China regulatory for the acquisition and the disposal. (Hong Kong Economic Journal P. 4)

PCD Stores (331 HK), a mainland department-store operator, plans to list on the Hong Kong bourse to raise as much as HK$3 billion. The company offers 1.5 billion shares at between HK$1.65 and HK$2.00. Entry fee of the IPO will be HK$4040, with 2000 shares per board lot. (Sing Tao Finance B2)

South African health insurance firm Discovery Holdings Ltd has bought almost 25 per cent of Ping An Health Insurance Co (2318 HK) to tap fast-expanding market. (Hong Kong Economic Journal P. 4)

NWS Holdings (0659) has agreed to sell 53 per cent stake in Taifook to Haitong, the second largest brokerage on the mainland by market assets. Taifook (665 HK) would become a subsidiary of Haitong upon the deal. (Hong Kong Economic Journal P. 4)

Tingyi Holdings (322 HK) announced yesterday it has gained approval from Taiwan regulatory to issue 380 million units of TDR in Taiwan. The TDR will be launched on December 16. (Hong Kong Economic Times A12)

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