Tuesday, September 7, 2010

Hong Kong Stock Market Wrap September 6th, 2010

Hong Kong Monetary Authority (3988 HK) introduced a pilot scheme for simplified sales procedure of yuan bonds yesterday. Those yuan bond issuers such as Bank of China, which sets to launch yuan bonds on Wednesday, can benefit from the scheme. But it is required that the yuan bond issuers are not issuing yuan bonds for the first time in Hong Kong, the bonds to be issued are of non-national debt nature, and the bonds consist of no leverages and derivatives as well. (SingTao Daily B2)

BYD Company’s (1211 HK) auto sales in the mainland went down almost 6 per cent mom in Aug, down 19 per cent yoy. Auto sales exceeded 353,000 units in the first 8 months this year. (Hong Kong Economic Journal P6)

China Properties Investment (736 HK) aims to place up to 360 million new Shares at a price of HK$0.056 per share, representing 16.5 per cent of the Company’s entire issued share capital as enlarged. The net proceeds of about HK$19 million will be used for general operating capital. (SingTao Daily B2)

China Strategic’s (235 HK) share price was expectedly to plunge up to 40 per cent after trading resumed yesterday. Market value evaporated almost HK$780 million in a half day. China Strategic announced yesterday it has received formal notice from the Ministry of Economic Affairs of Taiwan that the application for the acquisition of Nan Shan Life Insurance was rejected. (SingTao Daily B1)

Coolpoint Energy (8032 HK) has granted share options to certain individuals to subscribe for a total of 108 million shares. The exercise price of the granted options is HK$0.83 per share, same as its closing price yesterday. (SingTao Daily B2)

Evergrande Real Estate (3333 HK), whose sales were robust in the first half, has been recommended by several leading brokerage. Goldman Sachs has raised its core profit per share in 2011 an d 2012 by 21 per cent and 33 per cent respectively, with a target price upgraded to HK$4 from HK$3.47. Share price of Evergrande ended 6 percent higher to HK$2.84 yesterday. (SingTao Daily B2)

Trading in shares of Far East Holdings International (36 HK) was suspended last Friday. The company issued an announcement yesterday, stating that it was informed last Friday that one director and 2 employees have been charged by the Commercial Crime Bureau in respect of alleged offences including section 157H (2)(a) of the Companies Ordinance. (Hong Kong Economic Times A10)

Credit Suisse expects 2011 net profit of Hongkong Electric Holdings (6 HK) before buying UK networks to be HK$7.32 billion and after buying UK networks to be HK$8.17 billion, setting Neutral rating and HK$48.8 target price on the company. Morgan Stanley expects its 2011 net profit before buying UK networks to be HK$6.89 billion and after buying UK networks to be HK$8.14 billion, setting HK$47.9 target price on the company. (Hong Kong Economic Journal P6)

The State-owned Assets Supervision and Administration Commission has approved Huaneng Power International’s (902 HK) revised proposal regarding the new issue of shares. The company will convene a shareholders’ meeting on 10 Sep for approving the revised proposal. It plans to sell up to 500 million H shares at HK$4.73 apiece. (Hong Kong Economic Journal P6)

Longrun Tea Group (2898 HK) is planning to acquire “Tea Story” trendy teahouses in the mainland for 4.5 million yuan. Major products served in “Tea Story” trendy teahouses include bubble tea, cocoa drinks, fruity drinks, shakes and Taiwanese snacks and light refreshments. There are over 400 “Tea Story” trendy teahouses currently, which are mainly located in Hunan, Yunnan, Guangdong and Zhejiang Provinces. (SingTao Daily B2)

Luoyang Glass (1108 HK) says China Luoyang Float Glass, its controlling shareholder, has sold 20 million shares of the company, representing 4 per cent of the total share capital. CLFG’s shareholding in the company reduced to 31.8 per cent after completion of the transaction. (SingTao Daily B2)

Shanghai Forte Land’s (2337 HK) contractual sales area and sales amount for August were around 167, 200 square metres and 1.427 billion yuan respectively, up 2.34 times yoy and up 1.92 times yoy respectively. (Hong Kong Economic Journal P6)

The Hong Kong Parkview Group (207 HK) expects to book a profit of HK$24.5 million from the liquidation of subsidiary Qiao-Yi. The application for liquidation of Qiao-Yi was approved at the end of August. (SingTao Daily B2)

Yanzhou Coal Mining (1171 HK) plans to acquire 51 per cent equity interest in Haosheng Coal Mining for a total of 6.649 billion yuan. The company plans to acquire the 23.08 per cent and 12.41 per cent equity interests held by Jinchengtai and Jiutai Technology in it at 3.009 billion yuan and 1.618 billion yuan respectively and to bid for the 15.51 per cent equity interest held by Shanghai Huayi in Haosheng Coal Mining. (Hong Kong Economic Times A11)

Zijin Mining (2899 HK) announced in May it planned to acquire 2 projects in Congo but the acquisition agreement expired on 31 Aug and the conditions precedent had not been fully satisfied. The company has decided not to extend the agreement. (Hong Kong Economic Times A11)

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