Thursday, September 30, 2010

Hong Kong Stock Market Wrap September 29th, 2010

Beijing Yu Sheng Tang (1141 HK) placed 517 million shares at a placing price of HK$0.285 per share on Sep 28, representing a discount of over 17 per cent to the closing price on that day. The net proceeds of about HK$143 million will be used as general working capital. (SingTao Daily B4)

China Resources Land (1109 HK) entered into an agreement relating to a HK$800 million four year term loan facility with a bank yesterday. According to the facility agreement, China Resources Land’s largest shareholder CRH shall hold not less than 35 per cent equity interest in the company. CRH currently owns almost 63 per cent of the issued share capital of China Resources Land. (SingTao Daily B4)

CK Life Sciences (775 HK) Int’l sold 40 million shares of Ruinian International Limited (2010) at HK$6.55 each on Monday, reaping HK$203 million. The net proceeds of HK$257 million arising from the placing will be used for general working capital. (SingTao Daily B4)

The copper project of Lady Annie, a subsidiary of CST Mining (985 HK) in Australia, announced the resumption of mining days ago. CST mining chairman Chiu Tao said that the first batch of electrolytic copper will be produced in December this year. He expects CST’s results to swing to the black in 2012. (SingTao Daily B3)

Dah Sing Banking (2356 HK) plans to issue US$150 million 3-yr senior unsecured floating rate notes to raise funds for general banking and corporate purposes. Fitch Ratings and Moody's assign 'A' and ‘A3’ rating to the notes respectively. (Hong Kong Economic Times A11)

Hang Lung Group (10 HK) and Hang Lung Properties (0101) appoint Ho Hau Cheong as executive director. Ho is entitled to receive from Hang Lung Properties emoluments of HK$4.4 million per annum (including basic salary, pensions and director’s fee) and a discretionary performance bonus and to receive from Hang Lung Group a director’s fee. Ho will be granted an option to subscribe for 2 million shares in Hang Lung Properties. (Hong Kong Economic Journal P16)

Hong Kong Energy (987 HK) has entered into a non-legally binding term sheet with a potential investor yesterday in relation to a proposed issue of certain preference shares in the company. The investor plans to subscribe convertible preference shares of the company at a price of US$25 million (around HK$194.5 million). (SingTao Daily B4)

Goldman Sachs (1398 HK) placed 3.031 billion shares of ICBC after closing yesterday at HK$5.74 per share, a 3.8 per cent discount to yesterday’s closing price. Shares of ICBC rose HK$0.12 to close at HK$5.97 yesterday. Goldman Sachs still holds 10.1498 billion shares of ICBC, representing 12.26 per cent of ICBC’s H shares. (Hong Kong Economic Times A4)

Nine Dragons Paper (2689 HK) Cheung Yan family ranked third in Hainan Clearwater Bay 2010 Hurun Rich List released yesterday with a wealth of 38 billion. (Hong Kong Economic Journal P10)

Proview International (334 HK) announces that the ruling of Brazil court regarding the bankruptcy of a Brazil subsidiary was published in the official gazette on 10 Sep. The company says that the subsidiary has ceased operation and around HK$185 million due from it will be written off as bad debts. According to Proview International, the subsidiary does not have significant financial relationship such as corporate guarantee with other members of the group. (Hong Kong Economic Times A13)

Sichuan Expressway (107 HK) aims to issue debt-financing instruments in the mainland. The size of the issue will not more than 40 per cent of the company’s net asset value, subject to the prevailing market conditions at the time of the issue.

Sun.King Power Electronics Group (580 HK) kicks off IPO today to issue 409.8 million shares at HK$1.45-1.93 per share to raise HK$594 million-791 million. Listing date is 13 Oct. Sponsor is Deutsche Bank. (Hong Kong Economic Journal P8)

Sun Hung Kai Properties (16 HK) bought a site in Fanling for HK$459 million at yesterday’s land auction. It says that investment amount for the project is around HK$900 million and the site will be developed into a residential project. (Hong Kong Economic Times A3)

The results of Yueshou Environmental (1191 HK) for the year ended 31 July 2010 are expected to turn into the red. The reasons of the loss are primarily attributable to the slowdown of the sales order for sulphur fixing agents and desulphurization projects, and the impairment of goodwill of the environmental protection operations. (SingTao Daily B4)

Zhongsheng Group (881 HK) is seeking to acquire two mainland automobile dealerships for a total consideration of 1.3 billion yuan payable in cash that will be satisfied by internal resources. Upon completion of the deals, Zhongsheng’s dealerships will increase to 14, which are located at Beijing, Tianjin and Fuzhou respectively. (SingTao Daily B3)

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