Friday, September 17, 2010

Hong Kong Stock Market Wrap September 16th, 2010 (1688 HK) parent Alibaba Group says it has talked to Yahoo suggesting buying back the around 39 per cent interest held by Yahoo and Yahoo has rejected the suggestion. (Hong Kong Economic Times A14)

Anhui Tianda Oil Pipe (839 HK) has introduced French oil pipe manufacturer Vallourec as a strategic investor. The company will sell the enlarged shares by 19.45 per cent to Vallourec at a price of HK$3.96 each, involving a consideration of HK$776 million. (SingTao Daily B4)

BYD Company (1211 HK) will acquire 18 per cent equity interest in Zhabuye Lithium for 201 million yuan. As at 30 Apr, the appraised net assets of Zhabuye Lithium amounted to 431 million yuan. The company is in Shigatse, Tibet, principally engaged in developing lithium mine, boron mine and products of lithium and boron series. (Hong Kong Economic Journal P9)

Brilliance China (1114 HK) announced yesterday that BMW Brilliance Automotive Ltd. (BBA) and BMW will form and operate a joint venture BMW Automotive Finance (China) Co., Ltd., which has been approved by China Banking Regulatory Commission. The JV will be owned as to 42 per cent by BBA and as to 58 per cent by BMW with a registered capital of 500 million yuan, which is expected to start operations in the fourth quarter of 2010.

Cathay Pacific Airways (293 HK) has confirmed to order 30 A350-900 aircraft from Airbus for HK$60.84 billion, with an option to buy 30 more A350 aircraft. The new aircraft will begin delivery in 2016 and are scheduled to arrive over a three-year period. Share price of Cathay pacific Airways closed 1.7 per cent higher at HK$20.7 yesterday. (SingTao Daily B2)

Fantasia Holdings Group (1777 HK) aims to buy a parcel of land owned by a company in Chengdu. The gross floor area of the land is 16,564 square meters. (SingTao Daily B4)

Guoco Group (53 HK) is planning to sell the 30.14 per cent equity interest in Pepsi-cola Products Philippines. The consideration will be around HK$685 million. (SingTao Daily B4)

Huaneng Power International (902 HK) has received from controlling shareholder Huaneng Group an undertaking on relevant matters for further avoidance of business competition by Huaneng Group with it. Huaneng Group undertakes, for example, to treat it as the only platform for integrating the conventional energy business and to take about 5 years to improve profitability of the conventional energy business assets of Huaneng Group in Shandong and inject them into it when the terms become appropriate. (Hong Kong Economic Journal P10)

ICBC Asia (349 HK) said it is launching its first offshore 2 billion yuan certificates of deposit. These two-year certificates of deposit yield 2.25 per cent that will be distributed once for every six months. HSBC and Standard Chartered are underwriting the offering. The proceeds will be used as general working capital to support the development of yuan businesses of the bank. (SingTao Daily B4)

ICBC (1398 HK) announces that during 10–14 Sep it successfully issued 22 billion yuan subordinated bonds in the China national inter-bank bond market. (Hong Kong Economic Times A14)

Interchina Holdings (202 HK) plans to place HK$495 million convertible notes bearing interest rate of 5 per cent per annum for developing environmental protection and water treatment operation and exploring investment opportunities in the future. Initial Conversion Price is HK$0.9 per share. (Hong Kong Economic Journal P10)

L.K. Technology (558 HK) is expected to record a significant increase in profit for the six months ending 30 September 2010. This remarkable improvement is primarily attributable to a significant increase in sales of the company’s products in the mainland market as a result of market recovery. (SingTao Daily B4)

The board of directors of Rainbow Brothers (33 HK) has recommended distributing a special dividend of 5 HK cents per share. All transfers of shares are required to be lodged for registration not later than September 21, 2010. (SingTao Daily B4)

Silver Base Group (886 HK) CEO Chen Sing Hung, Johnny and CFO Chung Wai Man will resign with effect from 25 Sep. Shares dropped 9.8 per cent to HK$3.86 on the news yesterday. Executive director Wang Jindong will take Chung’s place as CFO while chairman Liang Guoxing will assume the duties of CFO for the time being. (Hong Kong Economic Times A14)

Yuexiu Property (123 HK) acquires a parcel of land in Zhongshan for 416 million yuan. Price of acquisition per sq. m. is 1,138 yuan. The land is on Bo-ai Road in Zhongshan City, with a site area of around 138,000 sq. m. and a gross floor area of around 366,000 sq. m., for residential and commercial use. (Hong Kong Economic Journal P13)

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