Thursday, June 10, 2010

Hong Kong Stock Market Wrap June 2nd, 2010

Bank of China (3988 HK) is reviewing the regional government’s loan financing platform as required by China Banking Regulatory Commission, BOC’s President Li Lihui said at a road show via Internet for 40 billion yuan worth of A-share convertible bonds. He expects that the move will not affect the bank’s capital quality. (Sing Tao Daily B4)

China Everbright (165 HK) announced yesterday that its subsidiary Everbright ALAM has sold up to a 39% stake to the UK-owned Ashmore Investment Management Limited. China Everbright and Ashmore will become new strategic partners following the transaction. Ashmore will also provide funds for China Everbright for future growth of Mainland real estate business. (Sing Tao Daily B4)

The natural gas price increased by the National Development and Reform Commission only has little impact on China Bluechemical (3983 HK), Citibank reported. The bank set its rating of China Bluechemical as “buy” and the target price at HK$6.4. (Sing Tao Daily B11)

CR Cement (1313 HK) announced on June 1 that it agreed to acquire from Mr. Xing 72 per cent of the issued share capital of Guardwise Investments for a consideration of $72. Both parties agreed to provide Fulong Cement with a total amount of not exceeding 2.11 billion yuan. (Sing Tao Daily B4)

China Sci-Tech (985 HK) chairman Chiu Tao said the company would focus on copper resources and G-Resources (1051) would focus on investing in gold ores. On being asked about the placing of shares by the company, he said he would subscribe US$100 million shares with 2-year lock-up period. (Hong Kong Economic Times A12)

CNOOC New Energy Investment under CNOOC (883 HK) announced forming a JV with Altona Energy last year. Altona Energy said yesterday Australian Foreign Investment Review Board had approved of the project and of their developing Arckaringa project in Southern Australia jointly.
(Hong Kong Economic Journal P4)

First Pacific (142 HK) plans to repurchase up to US$130 million in value of its shares from the open market in 24-month. Based on the yesterday’s closing price of HK$5.09, the company said it would repurchase around 5 per cent existing share capital via the plan. (Hong Kong Economic Times A12)

Guangzhou R&F Properties (2777 HK) saw contracted sales and areas in May this year drop 48.9 per cent and 42 per cent over those of April respectively to 1.253 billion yuan and 106,000 sqm, down 48 per cent and 58 per cent over the same period last year. (Hong Kong Economic Times A12)

Guoco Group (53 HK) increased holding of shares in The Bank of East Asia (0023) by 2.5 million shares for over HK$66.98 million at a price of HK$26.793 per share in average last Friday. (Hong Kong Economic Journal P4)

HSBC Holdings (5 HK) said yuan deposits in the bank in April grew over 10 per cent and the growth continued in May. Bloomberg quoting a comment from the bank said May yuan deposits in the bank enjoyed reasonable growth, reflecting that Europe debt crisis didn’t affect interests in yuan deposits. (Hong Kong Economic Journal P7)

Le Saunda (738 HK) announced that its net profit surged almost 20 per cent over the last year. It is expected that the market will re-evaluate the share price and to pick up under the weakened market, as its value is undervalued. (Sing Tao Daily B11)

Prosperity Minerals (803 HK) announced yesterday that it is to set up a joint venture to develop Fujian resort and residential projects including developing facilities of hot spring resort, residents and commercial buildings, etc. (Sing Tao Daily B4)

(2378) PRUDENTIAL PLC MAY CANCEL TRANSACTION WITH AIA The transaction between the two insurance giants may be cancelled, leading to the listing of AIA being discussed again. Perhaps the cancellation is not bad to both sides, as there are risks for the merger of two companies. (Sing Tao Daily B2)

(0891) TRINITY LIMITED TO INCREASE 55 NEW MAINLAND STORES THIS YEAR The company reaped desirable proceeds in the first five-month period and it is confident that it may reach a double-digit growth for the full year same-store sales. The company’s sale mobility comes from China’s second-tier and third-tier cities, so it will increase at least 55 new stores in the Mainland this year. (Sing Tao Daily B4)

Yuzhou Properties (1628 HK) acquires the entire registered capital of Shanghai Xiersi for a total consideration of 285.5 million yuan so as to enter large-scale shopping mall projects in Shanghai. (Hong Kong Economic Journal P12)

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