Friday, June 24, 2011

Hong Kong Stock Market Wrap June 23rd, 2011

China Merchants Group (144 HK), the parent of China Merchants Holdings (International), plans to issue up to RMB 3 billion, 2-3 pct, 3-year and 5-year offshore bonds in Hong Kong. (Hong Kong Economic Times A14)

Mr. Guo Guangchang, CEO of Fosun International (656 HK), announced no intention of privatization of Fosun International over the next two to three years. He notes that the company still has adequate capital resources to cope with daily operating business. (Hong Kong Economic Journal P6)

Inditex, Zara’s Parent, is reportedly considering the acquisition of Giodano (709 HK). Giodano denied such news. Inditex declined to comment on this matter but admitted that there has not been any contact with Giodano concerning the acquisition. (Hong Kong Economic Journal P6)

Joyce Boutique (647 HK) announced that for the year ended 31 March 2011, the company’s net profit surged 2.8x to HK$133 million. The company proposed an interim dividend of HK 4 cents per share. The company plans to open three fashion shops and one beauty shop in Hong Kong. (Hong Kong Economic Journal P6)

Ju Teng International (3336 HK) says its earnings for the six months ending 30 June 2011 is expected to drop substantially, which is primarily due to decline in gross profit margin. Since the second half of 2010, its gross profit margin has decreased due to rising labour costs and the appreciation of the value of RMB as well as decline in the average selling price of its products. (SingTao Daily B2)

RCG Holdings (802 HK) has agreed to sell its business of trading and distribution of computer-related products and biometrics devices in Malaysia at an aggregate consideration of RM32.40 million. (SingTao Daily B4)

Semiconductor Manufacturing International (981 HK) announces an appointment of professor Lawrence Juen-Yee Lau as non-executive director and Zhang Wenyi as independent non-executive director. Professor Lau was president of The Chinese University of Hong Kong and is the chairman of CIC International (Hong Kong). (SingTao Daily B2)

Soho China (410 HK) has entered into a facility agreement with a syndicate of banks for US$605 million equivalent 3-year transferable term loan facility. The syndicated loan aims to finance the general corporate funding for the company. (Hong Kong Economic Journal P8)

The Hong Kong Parkview Group (207 HK) has been informed by controlling shareholders that they received an indication of interest in relation to a potential acquisition of a controlling stake in the company from them. Whilst there have been discussions, no agreement has been reached yet. (SingTao Daily B2)

Vale S.A. (6210 HK) announces its plan to take its subsidiary Vale Fertilizantes private, expecting this will involve US$1.39 billion. (SingTao Daily B2)

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