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

Hong Kong Stock Market Wrap September 28th, 2010

Brightoil Petroleum (933 HK) recorded a net profit of HK$1.144 billion for the year ended June 30, benefiting from a remarkable increase of 120 per cent in marine bunker sales volume. Earnings per share amounted to 19 HK cents and a final dividend of 3 HK cents per share was declared. (SingTao Daily B4)

China Shipping Development (1138 HK) has signed purchasing agreement with controlling shareholder’s subsidiaries, China Shipping Industrial Co., Ltd. and China Shipping Industrial (Jiangsu) Co., Ltd., regarding the construction of 12 vessels for the transportation of coal and other bulk cargo. The total consideration for the construction of the vessels is around 2.553 billion yuan. (SingTao Daily B4)

China Unicom (762 HK) proposes to issue a total of US$1.839 billion (around HK$14.27 billion) five-year convertible bonds, carrying a rate of 0.75 per cent per annum. The initial conversion price is HK$15.85 per share, representing a premium of 35 per cent to its closing price yesterday. The stock of China Unicom plunged 4.2 per cent to close at HK$11.2 yesterday. (SingTao Daily B2)

Country Garden (2007 HK) repurchased RMB-denominated US dollar settled 2.5 per cent convertible bonds due 2013 in aggregate principal amount of 60 million yuan through over-the-counter market on 27 Sep. The aggregate principal amount of the bonds remaining outstanding would be 1.3036 billion yuan. (Hong Kong Economic Journal P8)

Forefront Group (885 HK) shareholder meeting passed a resolution that approved an investment of US$10 million in AITS, a company engaged in automobile air conditioner parts. (SingTao Daily B4)

Fosun International (656 HK) was approved by the Forte Group to take up a new business opportunity under the condition that Fosun will not directly compete with the latter. The new business is in relation to a bid for a property development project to be developed on five pieces of land located at Donggang Area, Zhongshan District, Dalian. The bid price for the land was around 3.602 billion yuan. (SingTao Daily B4)

Franshion Properties (China) (817 HK) plans to issue perpetual convertible securities to raise up to US$600 million at HK$2.83 each. The rate of distribution shall be 6.8 per cent per annum. After full conversion, 1.644 billion new shares will be involved, representing 15.22 per cent of the enlarged issued share capital. Shares closed at HK$2.29 yesterday. (Hong Kong Economic Times A12)

Hopewell Holdings’ (54 HK) managing director Wu Thomas Jefferson increased holding of shares in the company by 100,000 shares on 24 Sep at HK$24.95 apiece on average. Wu also increased holding of shares in Hopewell Highway Infrastructure (0737) by 200,000 shares on 24 Sep and 27 Sep, involving a total of HK$11.84 million. (Hong Kong Economic Journal P11)

King Fook (280 HK) said its same-store sales booked a 5-6 per cent growth for the period from April to September this year. The company requires relocating or closing several outlets due to expiry of tenancy agreements. There has been a net decrease of at least three outlets since the beginning of the year. (SingTao Daily B4)

Canada listed company Power Corporation of Canada decreased holding of shares in Lai Sun Development (488 HK) by 77.26 million shares on 22 Sep at HK$0.183 per share on average, reaping HK$14.1386 million. (Hong Kong Economic Journal P11)

Midas Holdings (1021 HK) will list in HK on 6 Oct (Wed). It announces that the final offer price for the secondary listing has been set at HK$5.43 per share, 11 per cent lower than the maximum offer price of HK$6.1 a share and around 4 per cent discount to yesterday's closing price in Singapore. (Hong Kong Economic Times A3)

New Media Group (708 HK) posted a profit of around HK$45.6 million for the year ended Jun 30. Earnings per share was 7.6 HK cents. A final dividend of 1.3 HK cents per share was distributed. (SingTao Daily B4)

Pou Sheng International (3813 HK), subsidiary of Yue Yuen Industrial (0551), posted unaudited consolidated profit attributable to owner of US$ 14.423 million for the nine months ended June 30 2010, down 9.99 per cent year on year. (Hong Kong Economic Times A12)

Walker (1386 HK) expects to record a net profit or net loss for the six months ending Sep 30, 2010, depending on the sales performance in the month of Sep 2010 and the fair value of the financial investment as of Sep 30. (SingTao Daily B4)

Yue Yuen Industrial (551 HK) saw unaudited consolidated profit attributable to owners drop almost 5 per cent yoy to US$346 million for the nine months ended 30 Jun. Turnover rose over 10 per cent yoy to US$4.2 billion. Loss from fair value changes on derivative financial instruments amounted to US$4.12 million. (Hong Kong Economic Times A12)

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

Hong Kong Stock Market Wrap September 27th, 2010

Agile Property (3383 HK) announced that Agile Royal Mount Zhongshan was launched on Sep 25 and recorded contract sales amount of more than 400 million yuan on that day. (SingTao Daily B3)

Real estate stocks outperformed yesterday. Cheung Kong (1 HK) shares rose over 2 per cent to close at HK$115.6. Morgan Stanley raises target price on the company from HK$115 to HK$130, maintaining Overweight rating. Cheung Kong may outperform other developers in the short term as it will record strong sales in the coming 3 months. (Hong Kong Economic Journal P10)

China Huiyuan Juice (1886 HK) has received a notice from China Hui Yuan Holdings held by substantial shareholder and chairman Zhu Xinli to convert US$6 million convertible bonds into 9.1366 million Huiyuan shares at HK$5.1 each, taking Zhu’s shareholding in the company to 41.89 per cent. (Hong Kong Economic Times A13)

China XLX Fertiliser (1866 HK) plans to construct a fourth production plant to expand its production capacity for urea. It plans to acquire a piece of land at Xinxiang Economic and Technology Development Zone, Henan to construct production and office buildings and buy new equipment and machinery. It plans to invest 3 billion yuan in the plan and expects it to be fully completed by the end of 2013 to increase its production capacity for urea to over 2 million tons a year. (Hong Kong Economic Journal P12)

Sources say that 2 shareholders of Comba Telecom (2342 HK) Systems place 30 million shares at HK$8.46-8.63 per share to raise up to HK$259 million. Shares closed at HK$8.9 yesterday. If the placing is well received, an additional 5 million shares will be placed. (Hong Kong Economic Journal P10)

Heng Xin (8046 HK) China booked a net profit of around HK$181 million for the year ended June 30, surging 64 per cent year-on-year. Earnings per share was 11.96 HK cents. The company also distributed one bonus share for every 30 shares. (SingTao Daily B3)

Hua Xia Healthcare (8143 HK) plans to carry out a rights issue to raise HK$92.9 million to over HK$97 million. The rights issue involves the issue of 1.498 billion shares to 1.578 billion shares at a subscription price of HK$0.062 apiece. The net proceeds of the rights issue will be mainly used to repay loans. (SingTao Daily B3)

Mongolian Mining Corporation (975 HK) is set to kick off IPO today. It is said that its international tranche has been oversubscribed and several investors including Henderson Land Development (0012) chairman Lee Shau-kee, The Hong Kong and China Gas (0003) and Singaporean GIC have bought the shares. MMC’s offer price is at HK$6.48 to HK$7.56. Entry cost is HK$3,818.1 per board lot of 500 shares. (SingTao Daily B2)

Nine Dragons Paper (2689 HK) saw profit attributable to shareholders increase by 30.42 per cent to 2.166 billion yuan for the year ended June 30. Earnings per share amounted to 0.4792 yuan and a final dividend of 10 fen per share was declared. Chairlady Cheung Yan expects the company’s total design production capacity in 2011 and 2012 to reach 10 million tpa and 12 million tpa respectively. (SingTao Daily B2)

Orange Sky Golden Harvest (1132 HK) plans to acquire 3.33 per cent equity interest in Legendary Pictures, a US film production firm, for US$25 million. Orange Sky will appoint an executive director to sit on the board. (SingTao Daily B3)

Oriental City (8325 HK) proposes to raise HK$19.5 million by issuing about 300 million rights shares at a price of HK$0.07 apiece, on the basis of one rights share for every two shares. The company also plans to issue bonus share on the basis of one bonus share for every share. (SingTao Daily B3)

Sources say that Ruinian International’s (2010 HK) shareholders place 100 million shares at HK$6.41-6.55 each to raise up to HK$655 million. Shares closed at HK$6.86 yesterday. Shareholders include Turrence, Raffles and Templeton Private Equity. (Hong Kong Economic Journal P10)

SOHO China (410 HK) achieved contract sales of 18.3 billion yuan as of 25 Sep 2010, up 1.32 times from the first nine months in 2009, reaching the 2010 full year sales target of 18 billion yuan ahead of schedule. Chairman Pan Shiyi expects full year sales amount to reach 20 billion yuan. (SingTao Daily B3)

United Company RUSAL (486 HK) plans to acquire a stake in a sales and marketing subsidiary of China North Industries Corporation (NORINCO). Both parties have signed a Letter of Intent. NORINCO also intends to invest into the high-tech production capacities of RUSAL’s Siberian smelters. RUSAL will, under a long-term contract, deliver up to 2 million tonnes of aluminum alloys worth more than US$4 billion every year to Asian markets from its Siberian smelters. (Hong Kong Economic Journal P12)

It is said that Vinda International (3331 HK) and a shareholder place a total of 32.5 million shares at HK$9.2-9.5 apiece to raise up to HK$309 million, among which 28.5 shares are new shares and 4 million shares are existing shares. Shares closed at HK$9.8 yesterday. (Hong Kong Economic Journal P10)

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

Hong Kong Stock Market Wrap September 24th, 2010

AEON Credit Service (Asia) (900 HK) booked interim profit of HK$116 million for the six months ended 20th August, down 6 per cent. EPS amounted to 27 HK cents per share. An interim dividend of 16 HK cents per share was declared. (SingTao Daily B12)

Buildmore International (108 HK) incurred a loss of around HK$199 million for the six months ended 31 July, as compared to the loss of around HK$20.53 million over the same period last year. Revenue was about HK$11.25 million. Loss per share reached HK$1.51. No dividend was declared. (Hong Kong Economic Journal P4)

China Resources Enterprise (291 HK) plans to sell the entire issued share capital of CR Vogue to its parent China Resources (Holdings) Company for HK$53.98 million. CR Vogue is mainly engaged in apparel retail distribution for the brand “ck Calvin Klein” in the PRC. (Hong Kong Economic Times A8)

China Water Industry (1129 HK) announces that minority investors will restructure existing convertible bonds issued in 2007. Both parties have agreed to certain key terms, including redemptions by instalments: the bonds held by the latter will be redeemed for around HK$128 million in cash (excluding interest costs and discounts for early repayment), payable in instalments starting from next month and ending in July 2012. (Hong Kong Economic Journal P4)

Solargiga Energy’s (757 HK) subsidiary Rising Sun has entered into a subscription agreement and a JV agreement with 3 individual shareholders of a JV, Qinghai Chenguang New Energy. Rising Sun will acquire 51 per cent interest in the JV, engaging in manufacturing monocrystalline silicon solar ingots, through cash injection of 45.9 million yuan. Solargiga Energy expects the JV to construct a production plant with a planned annual production capacity of 2,000 tonnes of monocrystalline silicon solar ingots commencing in Oct and expects the plant to reach full capacity in mid 2013. (Hong Kong Economic Times A8)

Texwinca Holdings (321 HK) is to purchase 10 per cent interest in its subsidiary Baleno Holdings, engaging in the retailing and distribution of casual apparels and accessories, for around HK$203 million, around HK$60 million of which is payable by cash and the rest by issuing new shares at HK$8.9 each.

Uni-President China (220 HK) issues an announcement regarding the recovery of debts from Guangdong Zhong Gu Tang Ye of 110 million yuan, stating that the percentage of recovery for general claims is around 28.35 per cent according to the draft reorganisation plan of the latter. Based on the percentage, the company expects to recover around 31.2 million yuan. (SingTao Daily B12)

IPO: AIA that is going to kick off presentation ahead of listing today at the earliest, expects the profit before tax for the year ended Nov 30, 2010 to amount not less than US$2 billion (around HK$15.6 billion). AIA plans to launch a roadshow on Oct 6 and list on Oct 29, aiming to raise about US$15 billion (around HK$117 billion). (Hong Kong Economic Journal P2)

Art Textile Technology (565 HK) saw the profit tumble 23.65 per cent to HK$5.55 million for the year ended Jun 30, 2010. Earnings per share amounted to 0.53 HK cents. No dividend was declared.

China Communications Construction (1800 HK) has successfully bid for several contracts that include a highway project located in Guizhou Province. The amount involved was about 1.07 billion yuan. (SingTao Daily B3)

China Merchants Bank (3968 HK) has sought to open an office in Taiwan previously, which was rejected by Taiwan’s Financial Supervisory Commission for the reason of not meeting related requirements. It is said that applicant organizations are required to have operated in countries within the Organisation for Economic Co-operation and Development for two years or above. (Hong Kong Economic Times A11)

China Qinfa Group’s (866 HK) Australian-listed subsidiary, Tiaro Coal, has collaborated with Dynasty Metals Australia in the operation of Australian Munna Creek project area. In the project area, 20-30 million tonnes of coal (mostly coking coal and exporting thermal coal) have been explored. (SingTao Daily B3)

China Resources Gas (1193 HK) is actively seeking to acquire 20-30 gas projects, with the acquisition criteria of not less than 15 per cent of internal return rate. The company expects the capital expenditure used in the acquisition of these projects in three years to be about HK$10 billion, which will be raised through bank loans and refinancing from capital markets.

Chinasoft International (354 HK) aims to acquire a 100 per cent equity interest in MMIM Technologies, Inc for a consideration of not more than HK$709,8 million. MMIM is a technology firm engaged in the mobile internet messaging, community social network services, add-on multimedia applications and innovative cross-network technologies. (SingTao Daily B3)

Metallurgical Corp of China (1618 HK) issued the second tranche of short-term financing bills for 2010 on Sep 17. The issued bills amounted to 10 billion yuan, bearing an interest rate of 2.97 per cent, which are repayable on maturity with a one-off interest payment. (SingTao Daily B3)

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

Hong Kong Stock Market Wrap September 22nd, 2010

21 Holdings (1003 HK) proposes the consolidation of every 20 issued existing shares into 1 issued consolidated share and a rights issue on the basis of 10 rights shares for every 1 adjusted share at HK$0.19 per rights share, to raise HK$214 million for acquiring real estate agency business in the PRC. (SingTao Daily B11)

China Overseas Land & Investment (688 HK) CEO Hao Jian Min decreased holding of shares in the company by 300,000 shares at HK$17.65 on 20 Sep, reaping HK$52.95 million. (Hong Kong Economic Journal P6)

HSBC’s (5 HK) CEO Michael Geoghegan reportedly threatens that he would quit if he was not made a chairman, expressing his dislike for John Thornton to be his superior. HSBC spokesperson McGuinness says the rumour is just nonsense. (Hong Kong Economic Journal P2)
Kader Holdings (180 HK) will sell 16 commercial units at 66 Lujiazui Road, Shanghai to 2 purchasers for over HK$77 million, to reap 31.22 million. (SingTao Daily B11)

RCG Holdings’ (802 HK) chairman Raymond Chu Wai Man has sold 5 million ordinary shares at HK$4.9 each to an institutional buyer, reaping HK$24.5 million. Chu’s total interests dropped from 18.8522 million shares or 6.49 per cent to 13.852 million shares or 4.77 per cent. (Hong Kong Economic Times A7)

Substantial shareholder of Tai-I International (1808 HK) Taiwan Tai-I entered into a non-binding MOU on 20 Sep with an independent purchaser regarding the possible sale of 32.79 per cent interest in Tai-I International held by Taiwan Tai-I to the purchaser at HK$0.3925 per share. (SingTao Daily B11)

Tcl Communication (2618 HK) Technology has appointed Andrew Look as independent non-executive director, entitled to an annual remuneration of HK$180,000, and granted him share options to subscribe for 600,000 ordinary shares, with validity period of 6 years. (SingTao Daily B11)

BBMG (2009 HK) plans to acquire assets of a cement production line, which is situated at Lingchuan Xian, Shannxi and is owned by Henan Mendian Group, at a total consideration of 350 million yuan. The company will increase its cement production capacity by about 1.5 million tons per annum through the acquisition. (Hong Kong Economic Journal P4)

BOC Hong Kong’s (2388 HK) rating was raised by Standard & Poor’s to “positive”. Shares price on Wednesday was seen HK$23.7 and to close 3.5 per cent higher at HK$23.5 finally, becoming the most powerful blue-chip. (SingTao Daily B10)

Leading brokerages have lowered rating on China Unicom (762 HK). Deutsche Bank forecast that China Unicom’s income from mobile phone business in 2010 and 2011 will decrease by 3 per cent and 6 per cent respectively, thus lowering its rating on the company from “buy” to “sell” and slashing target price from HK$11.7 to HK$10. (SingTao Daily B10)

Hutchison Whampoa’s (13 HK) subsidiary had signed a memorandum of understanding with Thailand’s state-owned CAT Telecom in relation to the sale of its mobile network, Bloomberg reports, citing Thailand newspapers. But the deal is cancelled as it does not get approval from Thailand authorities. (Hong Kong Economic Times A16)

Lenovo Group (992 HK) plans to launch hybrid personal computers in the mainland market early next year. Chief marketing officer David Roman expects the company to maintain the better-than-peers performance and to become the biggest personal computer producer in the world eventually. (SingTao Daily B3)

Ping An Insurance (2318 HK) has won approval to set up a fund management joint venture with United Overseas Bank, Xinhuanet reports. However, the spokesperson of Ping An Insurance said there is no announcement regarding the news. (SingTao Daily B3)

StanChart (2888 HK) aims to double its branch network in Nigeria over the next three years to tap into the country's growing middle class, its country chief executive Christopher Knight told foreign media. The lender is reportedly planning to take its number of branches to 50 from 26 and invest in new products rather than expand through acquisitions. (Hong Kong Economic Journal P6)

Vinda International (3331 HK) announced that shareholder Cathay Fund has distributed its entire stake, amounting to 9.2 per cent equity interest in the company, to its partners. The shares involved were about 83 million shares. Upon completion of the distribution, Cathay Fund will not hold any shares of the company. (SingTao Daily B3)

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

Hong Kong Stock Market Wrap September 21st, 2010

Asia Cement (China) (753 HK) signed an agreement in relation to a 5-year term syndicated loan of US$144 million in Taipei yesterday, with an interest rate of LIBOR plus 0.58 per cent. The real interest rate currently is below 1 per cent. (SingTao Daily B4)

Bossini International (592 HK) recorded an 80 per cent year-on-year surge in net profit to HK$90 million for the year ended June 30. Earnings per share was 5.66 HK cents. The board of directors proposed to pay a special dividend of 0.3 HK cent per share in addition to a final dividend of 2.3 HK cents apiece. (SingTao Daily B4)

Cheung Kong Infrastructure (1038 HK) plans to issue 5-yr perpetual notes at yield of 6.625 per cent to raise US$1 billion, around HK$7.8 billion, with JP Morgan as underwriter. It is said that it kicked off roadshow in HK and Singapore last Friday and this Monday respectively and the response was positive. (Hong Kong Economic Times A13)

HSBC, Deutsche Bank, JP Morgan and Morgan Stanley raise target price on China Resources Land (1109 HK) to HK$21.8, HK$18.8, HK$17 and HK$16.8 respectively. JP Morgan raises rating on it to Neutral. Deutsche Bank sets Buy rating. Shares dropped over 1.7 per cent to close at HK$16.94 yesterday. (Hong Kong Economic Times A13)

First Mobile Group (865 HK) incurred a loss of HK$2.164 billion for the year ended 31 December 2009, mainly due to the impairment of trade receivables of HK$1.85 billion for the year and included under general and administrative expenses. Revenue was around HK$3.106 billion. Loss per share was 111.23 HK cents. No dividend will be paid. (Hong Kong Economic Journal P8)

Greenfield Chemical (582 HK) acquires from China Century Worldwide the entire issued share capital of Ace Winner Holdings at HK$400 million. The consideration will be satisfied by cash or by issuing convertible bonds or a combination of both. Ace Winner Holdings has not recorded turnover or business activities since incorporation. It was set up solely for effecting reorganization. (Hong Kong Economic Journal P8)

ICBC (1398 HK) chairman Jiang Jianqing said that he has not heard about CBRC’s requirement for raising the capital adequacy ratio of banks by 15 per cent, Reuters reported. The Basel III rules have no impact on China’s banking sector in the near term, Jiang added. (SingTao Daily B4)

New Century Group (234 HK) has sold a building located at Nan Fung Industrial Building, Nos. 15-17 Chong Yip Street, Kwun Tong. The company owns three storeys of the building, which have a total gross floor area of over 48,000 square feet. The net proceeds from the disposal are estimated to be around HK$91 million and will be used for future investment purpose. (SingTao Daily B4)

RCG Holdings (802 HK) announced that substantial shareholders Tony Chan and his wife sold 5 million shares in the company to an institutional buyer on 17 September 2010, decreasing their shareholding to 18.42 per cent from 20.14 per cent. The transaction price was not disclosed, but it might involve around HK$24.5 million based on the share’s closing price of HK$4.9 last Friday. (SingTao Daily B4)

Richfield Group Holdings (8136 HK) saw profit climb 4.9 times to HK$140 million for the year ended 30 June. Basic earnings per share from continuing operations amounted to 4.77 HK cents. No dividend will be paid. Turnover rose 1.6 times to HK$310 million during the period. (Hong Kong Economic Journal P8)

Skyworth Digital (751 HK) said that total TV sales volume in August amounted to 600,000 units, declining 22 per cent year-on-year, sales amount down 2 per cent. The sales volume of CRT TV for the China TV business unit in August significantly decreased by 99 per cent to only 1,100 units. The main reason is the demand of traditional CRT TV has increasingly diminished in the mainland market. (SingTao Daily B4)

Solargiga Energy (757 HK) has confirmed to set up a joint venture company to engage in the business of manufacturing multicrystalline silicon solar ingots and wafers. The JV will be owned as to 37 per cent equity interest by Solargiga. The amount of total investments and registered capital of the JV will be 675 million yuan and 200 million yuan respectively. (SingTao Daily B4)

Goldman Sachs, JP Morgan, Credit Suisse and Royal Bank of Scotland raise target price on Sun Hung Kai Properties (16 HK) to HK$141, HK$138, HK$136 and HK$123.31 respectively. Morgan Stanley sets target price on the company at HK$155. Credit Suisse sets Outperform rating on it; Nomura and Goldman Sachs, Buy rating. Shares closed at HK$123 yesterday. (Hong Kong Economic Times A13)

Yuzhou Properties (1628 HK) has successfully bid for 3 parcels of residential land in Tianjin for a total of 360 million yuan, with a gross floor area of over 320,000 square meters. Land price per floor area is about 1,000 yuan per sqm. It is estimated that the average price will reach 8,000 yuan per sqm upon construction. (SingTao Daily B4)

At Yinyan Tin Mine, in Xinyi, Guangdong, of Zijin Mining (2899 HK) subsidiary Xinyi Zijin Mining, Yinyan Tin Mine tailing dam collapsed on 21 Sep because of the mud and rock slides caused by torrential rainfall brought by typhoon no. 11 “Fanapi” and electricity supply, communication and transportation there are currently suspended. The company says the effect of this incident on the mine cannot be assessed at present. The mine is in trial production and the tailing pool is in an initial operation stage. (Hong Kong Economic Times A13)

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

Hong Kong Stock Market Wrap September 17th, 2010

Sri Lanka government has issued to a consortium formed by China Merchants Holdings (International) (144 HK) a non-binding letter of intent. The consortium shall fulfill various conditions to the satisfaction of the authority within 180 days. After that, it may develop the South Container Terminal at the Port of Colombo under the Colombo Port Expansion Project. (Hong Kong Economic Times A10)

Hi Sun Technology (China) (818 HK) has submitted application to spin off and list Pax Global Technology, engaging in EFT-POS terminal solutions business, on the main board of the HK Stock Exchange. (SingTao Daily B12)

Oriental Ginza (996 HK) will sell a flat in The Mayfair, No. 1 May Road, The Peak and properties in the PRC Oriental Kenzo Plaza and Jing Gang City for HK$1.2 billion. It is estimated that there will be a gain of about HK$19 million. (SingTao Daily B12)

Pine Technology (8013 HK) booked net profit of around US$4.05 million for the year ended the end of June this year, up 2.64 times over the previous year. Dividend of HK$0.01 per share was

Wah Nam International (159 HK) has entered into agreements with placing agents to place up to 178 million existing shares at HK$1.15 each, around 4.77 per cent of existing issued share capital, around 4.56 per cent of issued share capital as enlarged, to raise up to around HK$200 million, HK$180 million of which will be used to fund its mining business. (Hong Kong Economic Journal P5)

Wing Tai Properties (369 HK) sells 40 per cent interest in a joint venture company for US$79.48 million, around HK$620 million. The JV company is interested in land with site area of 1.275 million square meters in the Shenbei District and the Hunnan District in Shenyang for developing high quality residences. The group expects to realize a gain of HK$37.44 million from the disposal. (Hong Kong Economic Journal P6)

ZTE Corporation (763 HK) announces that The European Commission opened on 16 Sep an anti-subsidy investigation in respect of data card products imported from the PRC. As operating revenue generated from the sales of data card products in EU nations accounted for a relatively small percentage of the total operating revenue of the company, according to data in 2009 audited financial statements, the investigations have little impact over the overall operations of the company. Shares rose 2.8 per cent to HK$31.2 on 17 Sep. (Hong Kong Economic Times A10)

Asia Energy Logistics (351 HK) announced that the cargo vessel named “Haibao” launched its maiden voyage on September 18. “Haibao”, which is owned by the joint venture company under Asia Energy, transports coal for Asia Energy’s business partners. (SingTao Daily B15)

Bosideng International’s (3998 HK) menswesar Spring/Summer 2011 trade fair will end tomorrow. The garment firm is optimistic on the prospect of the menswear market, targeting order amount to grow by 25-30 per cent year-on-year. Goldman Sachs has raised its target price for Bosideng from HK$2.7 to HK$3.1, but downgrading the rating from Buy to Neutral. (Hong Kong Economic Times A16)

Celestial Asia Securities (1049 HK) has signed MOU with vendors for acquiring 51 per cent equity interest in a company engaged in mobile digital entertainment business in China. The consideration of 81.6 million yuan will be settled as to 50 per cent in cash and 50 per cent by issue of consideration shares. (SingTao Daily B17)

Chun Wo Development (711 HK) chairman Dominic Pang Yat-ting said that the costs of mainland development projects are relatively lower whereas Hong Kong land prices are surprisingly high. For the targeted acquisition projects, he frankly expressed “he has no regrets even no acquisition deal can be achieved”. (Hong Kong Economic Journal P10)

According to China’s real estate brand value study, Evergrande Real Estate’s (3333 HK) brand value amounted to 8.016 billion yuan, ranking first. The developer’s sales amount hit 30.5 billion yuan for the first eight months amid a downward trend. Its sales areas also ranked first in the mainland. (SingTao Daily B15)

Modern Media (72 HK) plans to place 10 million new shares to HM Fund. In addition, it also aims to place 7 million new shares for Value Partners Funds at a price of HK$1.30 per share. The net proceeds of around HK$21 million will be used as general working capital. (SingTao Daily B15)

Shui On Construction (983 HK) plans to sell property assets in Chengdu to Ping An Insurance for a consideration of 718 million yuan. Shui On will gain 161 million yuan from the transaction. (SingTao Daily B15)

Sundart International (2288 HK), mainly engaged in renovation project business, does not exclude collaborating with other shareholders of Kailong REI Holdings Limited in acquiring mainland projects, aiming to strive for higher returns. Sundart announced previously that it has formed a strategic alliance with Kailong REI. (Hong Kong Economic Journal P10)

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