Hong Kong Stock Market Wrap Jan. 19th, 2010

Air China (753 HK) expects to record a profit for 2009 due to stable growth in mainland market and lower oil price. The company has recorded a loss of 9.25 billion yuan for 2008. (Sing Tao Finance B2)

Fuel-oil importer Brightoil Petroleum (933 HK) plans to buy up to eight vessels for a total of US$500 million to expand its marine transportation business, Chairman Sit Kwong-lam said on Tuesday. (Hong Kong Economic Times A12)

China Aoyuan Property (3883 HK) announced that its property sales has reached 2.88 billion yuan with a sold floor area of 589,100 square meters, surging 2.1 times compared with the prior year. Land reserve amounted to 9.5 million square meters by the end of 2009, which is sufficient for development in the coming five to seven years. (Sing Tao Finance B3)

China COSCO Holdings (1919 HK) said it has raised its shipping fees and fuel surcharges since January. The shipper expects to have a remarkable growth in its financial result this year. (Sing Tao Finance B3)

Sources said that China SCE Property (1966 HK) has attracted institutional investors, such as Macquarie, Ping An Insurance (Group) Company of China, Ltd (2318) to purchase shares in its initial public offering. Li Ka-shing, chairman of Cheung Kong Holdings (0001) would also purchase its shares for HK$100 million, becoming an anchor investor of the company, according to sources. (Sing Tao Finance B2)

China Unicom (762 HK) said number of its 3G subscribers for December has risen 0.92 million to 2.74 million, while subscribers of 2G network rose 0.64 million to a total of 144 million. (Hong Kong Economic Times A12)

Green Global Resources Limited (61 HK) announced to acquire nearly entire stake in Golden Pogada from China Railway Mongolia at no more than HK$200 million by way of the issue of new shares at a price of not less than HK$3.8 per share. (Hong Kong Economic Journal P. 6)

Chairman of Fountain Set (420 HK) Ha Chung Fong has sold no more than 25 per cent existing shares of the company to an independent party. The negotiation of this transaction is at the initial stage but this potential buyer has been confirmed by the regulatory. (Sing Tao Finance B3)

New Times Energy Corporation (166 HK) plans to issue 1.065 billion shares at a price of HK$0.31 apiece, a 10 per cent discount on its last trading price, to raise about HK$330 million for future investment. (Sing Tao Finance B2)

Shanghai Industrial Holdings (SIH) (363 HK) announced to acquire 500 million shares of Neo-China Land Group (0563), whose trading has been suspended for two years, for HK$1.16 billion or HK$2.32 per sale share. SIH has also subscribed 684 million new shares of Neo-China Land at the same price. (Hong Kong Economic Times A12)

Sijia Group (1863 HK), a mainland producer of reinforced materials and biogas tanks, is planning to issue 200 million new shares to raise up to 826 million at a price ranging from HK$2.69 to HK$4.13 per share. Entry fee amounts to HK$8343 per board lot of 2000 shares. (Sing Tao Finance B2)

Olympian City of Sino Land (83 HK) expects pedestrian traffic numbers to increase 13 per cent to 18 million over the next two months and sales to hit about HK$460 million, said Sino Group general manager for retail marketing and promotions Irene So Kit-lin. (Hong Kong Economic Journal P10)

Standard Chartered (2888 HK) said it has gained approval from mainland authority to be a market maker in China’s interbank bond market, the third such approval since the units of foreign institutions were first allowed to provide the service last year. (Hong Kong Economic Journal P6)

TC Interconnect (515 HK) has agreed to form a joint venture company for operation and management of energy saving projects and LED lighting. The company has invested HK$85.40 million in the joint venture, holding 51 per cent of the company. (Sing Tao Finance B2)

I-Cable’s sister company Wharf T&T (4 HK) will invest HK$1 billion to expand its fixed-network infrastructure and develop IT as a service for business customers. President Vincent Ma aims to increase the telecom service provider’s market share in business broadband service from lower than 10 per cent to 25 per cent in 2013 at the earliest. Network coverage for commercial buildings will grow from 60 per cent to over 95 per cent. (Hong Kong Economic Journal P. 6)

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