Thursday, June 10, 2010

Hong Kong Stock Market Wrap June 7th, 2010

IPO: Xinjiang Goldwind Science & Technology plans to launch its IPO on Thursday to raise over HK$9 billion at a price of HK$19.8-23 per share. Entry fee is HK$4646.41 yuan per board lot of 200 shares. (Hong Kong Economic Times A6) Inc. (8006 HK) declares a special dividend of HK$0.88 per share. The company said it has a strong balance sheet and will still have sufficient cash in the long term after distributing the dividends. (Hong Kong Economic Times A8)

China Resources Microelectronics (597 HK) said Executive Director and CEO Wang Guoping had replaced Song Lin as chairman of the Company. Song after his resignation will focus on overall strategies and business of China Resources (Holdings) as its chairman. (Hong Kong Economic Journal P4)

Glorious Sun Enterprises (393 HK) said mainland sales went up in the first 4-month this year and May sales in the mainland saw 2-digit growth but sales in Australia was not satisfactory. The company is confident this year earnings can keep up with last year’s level. (Hong Kong Economic Times A8)

Hang Lung Properties (101 HK) and Hang Lung Group executive director Ng Sze Yuen Terry exercised share options to buy shares in the 2 companies for 37.14 million on 31 May. After the increase in shareholdings, he holds 0.08 per cent and 0.09 per cent stakes of Hang Lung Properties and Hang Lung Group respectively. (Hong Kong Economic Journal P6)

Hongkong Electric Holdings (6 HK) will acquire a 25 per cent stake in Seabank Power from Cheung Kong Infrastructure (1038) for HK$1.234 billion. After the transaction, the company and Cheung Kong Infrastructure will hold seperately 25% of the issued share capital of Seabank Power. (SingTao Daily B12)

Johnson Electric Holdings (179 HK) non-executive director Wang Koo Yik Chun has increased holding of shares in the company by 3 million shares for over HK$12 million. Her shareholding has risen to 59.17 per cent. (SingTao Daily B12)

Wo Kee Hong (720 HK) plans to issue HK$25 million 2-year convertible bonds bearing interest at 4% per annum to raise around HK$24 million for business expansion plan, repaying bank borrowings and general working capital. Initial Conversion Price is HK$0.16 each. (SingTao Daily B12)

Bank of Communications (3328 HK) proposed H share rights issue of shares, on the basis of 1.5 H rights shares for every 10 existing H shares at HK$5.14 per H rights share payable in full on acceptance, being discounted as much as 37.2 per cent compared to its closing price last Friday. (Hong Kong Economic Times A10)

(1211) BYD COMPANY LIMITED ELECTRIC CAR SALES GROWTH SLOWS Distributors said that the sales price for the plug-in hybrid F3DM is 169.8 thousand yuan (excluding licence fee) and there will have 50,000 yuan of subsidy according to the central government’s subsidy policy for new energy -saving cars. The net price is very attractive at an amount within 100 thousand yuan, but the sales growth is slowing. (SingTao Daily B11)

The net interest spread is growing this year, reaching 2.56 per cent in the first quarter and it may reach 2.7-2.8 per cent of net interest spread level, China merchants Bank (3968 HK) said. (Hong Kong Economic Times A10)

China Railway (1186 HK) A-share announced with immediate effect that its executive director and deputy managing director Ding, Yuanchen to retire and will not be responsible for the posts of executive director and deputy managing director. (SingTao Daily B11)

Ping An Insurance’s (2318 HK) insurance funds have started to enter the market and it has set Taiwan Cathay Life Insurance as its strategy target, according to a media source. It also said that Ping An Insurance’s subsidiary, Ping An Property, has also started to organize its property business structure, the source added. (SingTao Daily B11)

Playmates (635 HK) that are mainly engaged in toys industry have several rental properties. The company remains bearish on the future growth of Hong Kong property market. It tends to increase its liquidity and will not consider for any real estate projects investments tentatively. (Hong Kong Economic Journal P7)

DENIED TO REPEAT BUYOUT OF AIA Prudential PLC (2378 HK) denied the rumour that it could have another chance to table an offer of AIA acquisition before the end of this year. (Hong Kong Economic Times A6)

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