Wednesday, October 20, 2010

Hong Kong Stock Market Wrap October 15th, 2010

China Mobile’s (941 HK)wholly-owned subsidiary China Mobile Group Guangdong subscribing 20 per cent interest in Shanghai Pudong Development Bank at 13.75 yuan per share has been completed. Guangdong Mobile has become the second largest shareholder of the bank. Total consideration was 39.5 billion yuan. (SingTao Daily B14)

Goldin Properties (283 HK) proposes to carry out an open offer on the basis of 2 units of convertible bonds with face value of HK$6 each for every 3 existing shares, involving an issue of not less than HK$4.894 billion and up to about HK$5.077 billion in value of convertible bonds, bearing an interest of 8 per cent pa. (Hong Kong Economic Journal P12)

TPG Star has agreed to subscribe for 300 million new preference shares in Hong Kong Energy (Holdings) (987 HK) at HK$0.65 each, a total consideration of HK$195 million. The former may require the latter to issue up to 260 million additional preference shares at HK$0.75 apiece. (SingTao Daily B14)

Li & Fung (494 HK) substantial shareholders Fung Kwok Lun William and Fung Kwok King Victor have acquired 1.03 per cent equity interest in Sanrio of Japan, owner of the Hello Kitty brand. Li & Fung spokesperson says the brothers acquired the shares via Fung Investment Pte. Ltd.

Sino-Tech International (724 HK) announces conversion of convertible notes in a total principal amount of HK$120 million into1 billion new shares, 12.2 per cent of the issued share capital as enlarged. Total number of shares issued by Sino-Tech International will be increased from 7.183 billion to 8.183 billion. (Hong Kong Economic Journal P6)

Tian An China Investments (28 HK) will acquire 11 units of Xijiao Elegant Garden Phase III, No. 189 Longxi Road, Changning District, Shanghai at consideration of 458 million yuan. Construction area is 4,583 sqm. Price is 100,000 yuan per sqm. (Hong Kong Economic Journal P12)

Unity Investments Holdings (913 HK) has resolved to grant share options to eligible grantees to subscribe for up to 85.39 million new shares of HK$0.10 apiece. Shares closed at HK$0.089 yesterday. (SingTao Daily B14)

IPO: Global Dairy opens its retail book from Oct 15 to Oct 20, seeking to offer 36.088 shares in Hong Kong. The maximum offer price is HK$5.2 per share, with board lot size of 1,000 shares each. Macquarie is the sole global coordinator and sponsor. (Hong Kong Economic Times A9)

AIA (1299 HK) starts its IPO today, aiming to raise HK$107.7-115.3 billion by selling around 5.86 billion old shares, with 90 per cent for international placing and 10 per cent for public offering. The offer price is at HK$18.38-19.68 per share. Entry cost is HK$3,975.68 per board lot of 200 shares. AIA is to list on Oct 29. (Hong Kong Economic Journal P4)

Bank of Communications (3328 HK) has launched OTO FORTUNE private banking services in the Hong Kong district. The lender is the first commercial bank introducing on-shore private banking services in Hong Kong. OTO Fortune will provide a global wealth management platform for clients. (SingTao Daily B17)

G-Resources (1051 HK) Group booked a loss of HK$351 million for the year ended Jun 30, plunging 114 per cent. Loss per share amounted to 2.5 HK cents. No dividend was declared. (SingTao Daily B17)

HSBC (5 HK) was sued by five Taiwanese banks including Hua Nan Financial in the US court, which claim HSBC aided the fraud by deceased financier Danny Pang’s PEM Group that caused them more than HK$4.1 billion in damages, foreign media reports. The five banks claim HK$5.3 billion in losses. (SingTao Daily B17)

Loudong General Nice Resources (988 HK) has entered into a supplemental agreement in respect of the acquisition of Shanxi Linxian Taiye Coal Mining. Under the agreement, the vendor Xin Jiang-bin undertakes to procure the dividends and distributions declared and paid by the target company of not less than 120 million yuan to the subsidiary of Loudong by the year ending 31 Dec 2011. (SingTao Daily B17)

Trony Solar Holdings (2468 HK) announces cooperating with Tokyo Institute of Technology in the development of solar battery and new generation solar power techniques. Both parties will jointly develop a new solar battery with high-energy conversion efficiency and thin film silicon in a three-year period. (SingTao Daily B17)

Zijin Mining Group (2899 HK) announces that two of its subsidiaries were ordered to compensate for economic loss in the amount of 19.5 million yuan over the collapse of the dam at the Yinyan Tin Mine Kaoqiling tailing pool located at Qianpai town, Xinyi City. (SingTao Daily B17)

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