Wednesday, September 15, 2010

Hong Kong Stock Market Wrap September 14th, 2010

Celestial Asia Securities and CASH Financial Services Group (0510) jointly announce that CFSG has decided not to proceed with the negotiation in relation to the sale of financial services business and the possible transaction will not proceed. Share price of Celestial Asia closed down 0.21 per cent to HK$4.76, while CFSG ended 0.83 per cent lower at HK$1.2 yesterday. (SingTao Daily B3)

China Eastern Airlines (670 HK) plans to increase a capacity of around 8-10 per cent over the next few years. China’s aircraft industry is seeing a period of unprecedented expansion, with a growth more rapid than expected, executive director Luo Zhuping said when interviewed by foreign media. He expected demand of airline capacity would be over supply. (SingTao Daily B2)

China Life Insurance (2628 HK) booked an original premium income of around 227.7 billion yuan for the first 8 months ended 31 Aug, up 8.07 per cent over the same period last year. Goldman Sachs maintains Neutral rating on the insurer, lowering target price from HK$39 to HK$32.5. (Hong Kong Economic Journal P8)

China Mobile (941 HK) will continue to join force with Vodafone on 4G business, president Wang Jianzhou said during the meeting with Vodafone in Tianjin. Both companies are intending to cooperate in the areas such as develop new markets, technology and environmental development. (SingTao Daily B3)

China National Building Material (3323 HK) places 238.9 million new shares at HK$15.85-16.65 each via Morgan Stanley to raise up to HK$3.978 billion to repay loans and use as general working capital, among which 218.3 million shares are new shares. Shareholder NSSF sells almost 20.65 million existing shares. (Hong Kong Economic Journal P4)

China Resources Gas (1193 HK) places 230 million shares at HK$10.75 apiece to raise HK$2.473 billion so as to acquire more downstream city gas distribution businesses in the PRC. Trading of shares resumes today. (Hong Kong Economic Journal P4)

Sources say that China Starch (3838 HK) shareholder places 400 million existing shares at HK$0.73-0.75 each to raise up to HK$300 million. Shares closed at HK$0.82 yesterday. (Hong Kong Economic Journal P4)

Apple said yesterday that iPads (Wi-Fi version) will be put to the market in Beijing and Shanghai starting this Friday at a minimum price below 4000 yuan. iPhone agent in the mainland China Unicom (762 HK) said yesterday that it has not received any related information yet. It also made no comments as to the rumours that it starts selling iPhone4 today. (Hong Kong Economic Times A12)

The Mina (985 HK) Justa Project, which is located in Southern Peru and owned 70 per cent by CST Mining Group, has obtained approval from the Ministry of Energy and Mines of Peru for the Environmental Impact Assessment. The project will start operation next year, expecting to produce 110,000 tonnes of copper per annum. (SingTao Daily B3)

Hua Xia Healthcare (8143 HK) aims at selling the entire issued share capital of Large Forever. The consideration involved will be HK$6.7 million. (SingTao Daily B3)

Lenovo’s (992 HK) parent Legend Holding is planning to pour 18 billion yuan for construction of a coal chemical base located in Shangdong. It is said that Legend Holdings has signed agreement with the municipal government of Zaozhuang city, Shangdong, expecting annual sales income to reach over 10 billion yuan after operation of the phase 1 coal chemical industry chain starting in 2013. (SingTao Daily B3)

Former ATV shareholder Chan Wing Kee said yesterday that all his shares in ATV have been sold to Prosperity International Holdings (H.K.) (803 HK) chairman Wong Ben Koon at undisclosed price. He will resign his position as director in the short term. (Hong Kong Economic Times A9)

Shenguan Holdings (829 HK) has acquired the T-bonds in a total of over 89 million yuan from the Ministry of Finance of the PRC through subsidiary Wuzhou Shenguan. Maturity date of the non-transferable T-bonds is September 14, 2011 with an interest rate of 2.6 per cent per annum. (SingTao Daily B3)

The United Laboratories International (3933 HK) places 77 million shares at HK$15.22-15.54 per share to raise up to HK$1.197 billion. JP Morgan arranges for the placing. JP Morgan raised target price on the company by 18.4 per cent to HK$22.5 last week, setting Overweight rating on it. Chairman Choy Kam Lok increased holding of shares several times at prices between HK$13.654-14.2 from 24 Aug to 31 Aug. Shares closed at HK$16.2 yesterday. (Hong Kong Economic Journal P4)

Yuexiu Property (123 HK) has proposed to raise HK$3.447 billion to HK$3.463 billion by issuing offer shares at a price of HK$1.61 per share, in the proportion of 3 offer shares for every 10 shares. The proceeds raised from the offer will be used for future land bank acquisition. (SingTao Daily B3)

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