Monday, May 24, 2010

Hong Kong Stock Market Wrap May 20th, 2010

IPO: Agricultural Bank of China will hold its first IPO assessment meeting on May 25. If the meeting goes smoothly, the bank would then submit a plan to CSRC on May 28, mainland media reported. The paper didn’t give details on what type of plan would be submitted. (Hong Kong Economic Journal P2)

IPO: Beijing Automotive Industry Holding Co (BAIC), China's fifth-biggest automaker, is in talks with investment banks for an initial public offering of its passenger car business, the president said on Friday. The company plans to announce a grouping of its passenger vehicle businesses within two months. Afterwards the company may start floating the unit, President said. (Hong Kong Economic Times A10)

China's securities regulator will on Monday review Bank of China Ltd.'s (3988 HK) plan to sell convertible bonds, according to a statement from the regulator. The bank previously announced to sell no more than 40 billion yuan convertible bonds into its Shanghai-listed shares, and would also sell $6 billion new shares in Hong Kong. (Hong Kong Economic Journal P2)

China Eastern Airlines (670 HK) hopes to resume seeking strategic investors within this year, according to chairman Liu Shaoyong. He said financial investors are welcomed. Singapore Airlines is said to be one of the potential candidates. (Sing Tao Daily B8)

Lenovo Group Limited’s (992 HK) turnover may fell 13 per cent to $4.2 billion quarter-on-quarter in the fourth quarter in the fiscal year in 2010, while surge 50 per cent year-on-year, according to Daiwa Bank’s report. Net profit may amount to $19 million, compared with a loss of $264 million in the same period a year ago. (Hong Kong Economic Journal P4)

High-profile dealmaker and former Goldman Sachs top Asian executive Fred Hu has decided to launch a $10 billion private equity (PE) fund, called Chunhua Fund, China Daily reported, citing unnamed sources. The paper said Ping An (2318 HK) may invest $5 billion in the fund. (Sing Tao Daily B8)

During Buddha's birthday holiday, Hong Kong’s new property market has recorded over 30 deals, among which 28 deals came from Sun Hung Kai’s Yuen Long (16 HK) project Yoho Midtown. (Hong Kong Economic Times A14)

Bonjour Holdings (653 HK) said HK retail market still has room to grow. The company targets to open 40 to 50 shops in Hong Kong within 4 years. It is confident to keep gross profit margin this year at at least the 34 per cent level of last year. (Hong Kong Economic Journal P4)

China Green (904 HK) announced that it bought back zero interest convertible bonds on 20 May this year. The bonds were due 2010 and of 80 million yuan, payable by dollar. (Sing Tao Daily B11)

China Water Property (2349 HK) will acquire 60 per cent interest in a real estate project in Hangzhou from an independent third party for 87 million yuan. The company will issue 520 million new shares to pay part of the sum. (Hong Kong Economic Times A16)

Datang International Power Generation (991 HK) has entered into a capital increase agreement with a coal company under its parent. It will increase capital in a wholly owned subsidiary of the company by around 330 million yuan and jointly develop a coalmine with the company. (Sing Tao Daily B11)

Hong Kong Resources Holdings (2882 HK) acquired 3D-Gold Jewellery Holdings (0870) early this month. Its chairman said they are helping 3D-Gold to resume trading within the year and to develop further in the mainland. (Hong Kong Economic Journal P4)

UK media report said that HSBC Holdings (5 HK) Chairman Green Stephen Keith would resign from its position later this year and non-executive director John Thornton would take his place. He was a former president of Goldman Sachs. (Sing Tao Daily B11)

Standard Chartered (2888 HK) is said to plan to issue a total of around 240 million IDRs in India at a price of 100 to 115 rupees each to raise up to 27.6 billion rupees. That is around HK$4.588 billion to be raised. (Sing Tao Daily B11)

Zijin Mining (2899 HK) has signed supplemental agreement for the agreement regarding the disposal of gold development business in Shandong. Consideration has been increased from around 192 million yuan to 221.5 million yuan. (Sing Tao Daily B11)

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