Chinese shares rise for 2nd day on property developer, financial stock gains
Chinese equities edged up on Friday, rising for the second day, led by real estate developers and financial stocks.
The benchmark Shanghai Composite Index rose 0.27 percent, or 8.6 points, to close at 3,224.15 points.
The Shenzhen Component Index gained 0.46 percent, or 60.18 points, to close at 13,264.37 points.
Combined turnover totaled 258.9 billion yuan (37.9 billion U.S. dollars), shrinking from 287.01 billion yuan on the previous trading day.
Gainers outnumbered losers by 541 to 310 in Shanghai and 494 to307 in Shenzhen.
On 2010-01-29, In Stocks, By znnw
On 2010-01-29, In Stocks, By znnw
Tech shares up on policy tweak
‘Internet of Things’ technology was developed to identify items in a company supply chain. [CFP]
Chinese investors are always fascinated by market concepts and their latest favorite seems to be companies involved in developing networks that could get every “thing” connected.
Last week, shares of electronics firms rocketed on expectations that the development of a new “Internet of Things” technology would revolutionize businesses in the country.
The technology, also called “sensor networks” or “Machine-to-Machine Internet”, refers to a network of all objects from daily life such as clothes, yogurt and books with radio tags that could be interconnected, identified and managed by computers.
Although the technology itself is not new, the market buzz started last Monday when the Standardization Administration of China (SAC) approved the establishment of a sensor network standards working group under the China National Information Technology Standardization Technical Committee.
The working group brings together institutions involved in research and application of sensor networks, including SAC and China Mobile, the world’s largest telecom carrier, to expand standardization in the field and to participate in international standardization efforts.
That move resulted in shares of Invengo Information Technology, one of China’s largest vendors of wireless RFID readers, surging by 57 percent last week. Fujian Newland Computer, which provides services in areas such as data identification, electronic payment and expressway information system, also rose 51 percent during the period.
But both companies issued statements saying that the “Internet of Things” technology was at an early stage and would not greatly impact the companies’ business in the near future.
Other Chinese listed companies involved with the “Internet of Things” technology include Xiamen Xinde, Datang Telecom, Eastcompeace and Inspur Software.
“Investors are betting that the involvement of China Mobile may boost the market,” said Duan Yingsheng, an analyst from Ping An Securities. “But, I don’t think the technology will bring in significant business benefits for the related companies in the foreseeable future.”
Duan said the “Internet of Things” technology was not comparable in significance to the emergence of the Internet in late 1990s, which gave birth to hundreds of technology firms such as Google and Amazon that completely changed the world we lived in.
He said Chinese investors’ fervor for electronic companies shares last week was due to the liquidity overhang in China’s stock market.
The concept of the “Internet of Things” could be traced back to 1999 when a research center at the Massachusetts Institute of Technology developed the technology for identifying items in the supply chain of companies.
Many have since hoped that the technology could be widely used in daily life, such as connecting refrigerators online so that when you run out of milk, it would order milk online, debit the bill to your bank account and arrange home delivery automatically.
On 2010-01-29, In Stocks, By znnw
China issues 30 bln yuan bond to finance railway expansion
China’s Ministry of Railways (MOR) has begun to raise 30 billion yuan (4.41 billion U.S. dollars) to support railway construction through floating the first batch of bonds this year on the inter-bank bond market.
The bond issue comprised 20 billion yuan of 10-year bonds and 10 billion yuan of 15-year bonds, with a bidding yield rate range of 4.8 percent to 5 percent, said the MOR Tuesday.
Proceeds would be used to construct 32 new rail lines including a passenger line linking the two northeastern cities of Dalian and Harbin, which will boast a speed of 350 kilometers an hour, said the MOR.
Six securities brokerages, including Citics Securities, will underwrite the bonds sale.
Last year, State planner National Development and Reform Commission gave the green light to the MOR to issue 100 billion yuan of bonds, mainly to facilitate construction of 43 railway construction projects and locomotive purchases.
China plans to extend its rail network to 100,000 km by 2020 from 76,600 km in 2006, at an estimated 2 trillion yuan cost.
On 2010-01-29, In Stocks, By znnw
China Enterprises Index up 0.75% — Sept. 22
Hang Seng China Enterprises Index on Hong Kong Stock Exchange went up 93.21 points, or 0.75 percent, to close Tuesday’s trading at 12,511.55.
The H-shares index, initiated in August 1994 and readjusted on Sept. 7, 2009, tracks the overall performance of 44 major Chinese mainland state-owned enterprises listed on the Hong Kong Stock Exchange.
Hang Seng China H-Financials Index moved up 164.72 points, or 0. 97 percent, to close at 17,154.49.
The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10, 2007, tracks the performance of nine major banks and insurers of the Chinese mainland.
Hang Seng Mainland Composite Index went up 29.16 points, or 0. 75 percent, to close at 3,924.23.
Introduced on Oct. 3, 2001 with the latest readjustment effective on March 9, 2009, Hang Seng Mainland Composite Index gauges the performance of 132 Hong Kong-listed companies with principal places of business in Hong Kong and the Chinese mainland.
Hang Seng China-Affiliated Corporations Index moved up 55.03 points, or 1.37 percent, to close at 4,072.01.
The index tracks the performance of 34 locally listed companies with a significant equity interest held by entities in the Chinese mainland.
On 2010-01-29, In Stocks, By znnw
Hong Kong stocks close 1.06% higher
Hong Kong stocks Tuesday opened84 points higher and their gains continued to expand before closing at the day-high of 21,701.14.
The benchmark index rose 228.29 points, or 1.06 percent, to end Tuesday’s session. Turnover shrank to 49.95 billion HK dollars (6.45 billion U.S. dollars) from Monday’s 57.50 billion HK dollars (7. 43 billion U.S. dollars).
China Enterprises Index went up 93.21 points, or 0.75 percent, to close at 12,511.55 points.
The properties sub-index became the biggest gainers among the four major stock categories, ending 1.47 percent higher, followed by the commerce and industry, 1.24 percent up. The finance edged up 0.86 percent and utilities rose 1.16 percent.
Blue-chips closed up in general. Banking giant HSBC Holdings ended 0.88 percent up to close at 91.75 HK dollars. Heavyweight China Mobile, by far the largest mobile carrier in the mainland, surged 2.42 percent to 80.3 HK dollars. HKEx, the sole exchange operator in Hong Kong, rose 1.29 percent, to 149.5 HK dollars.
Local properties also gained. Cheung Kong, the flagship of Hong Kong’s richest man Li Ka-shing, went up 1.71 percent to 100.8 HK dollars. SHK Properties surge 2.12 percent to 115.5 HK dollars. Henderson Land rose 2.81 percent to 51.3 HK dollars.
Mainland-based commercial lenders mostly closed up. Bank of China edged up 0.93 percent to at 4.33 HK dollars. ICBC rose 1.49 percent to 6.11 HK dollars. CCB moved down 0.46 percent to 6.46 HK dollars.
Chinese insurance shares generally finished higher. China Life moved up 1.98 percent to 36.15 HK dollars. Ping An edged up 0.23 percent to 65.1 HK dollars. PICC P&C gain 1.05 percent to 5.77 HK dollars.
As for energy shares, PetroChina rose 1.4 percent to 9.38 HK dollars, off-shore oil producer CNOOC gained 0.93 percent to 10.84HK dollars, while Sinopec Corp moved up 0.59 percent to 6.83 HK dollars. (7.8 HK dollars = 1 U.S. dollar)
On 2010-01-29, In 2, By znnw
Business news in January, 2010, when arrives at the college entrance examination registration. Born has completed worldbeater in 1966 making – enters for this year’s college entrance examination, with being born has become the college entrance examination examinee in 1990 son Xu Zhixiao together. At present, father and son aggressively reference appendix. It is known that after this is the country cancels the college entrance examination age limit, our province first pair simultaneously participates in the fathers and sons examinee of college entrance examination.
In order to interpret a dream also to give to set the example
I enter for the college entrance examination, since to interpret a dream, is for the child, studies with the child together, sets an example to the child.Xu Gong said.
After last year the college entrance examination ended, I from “West Business” on saw other provinces have the fathers and sons three people with on college entrance examination examination place. From then on I hope that my father can with on my examination place, inflate to me together. Moreover, goes to school greatly is my father’s dream. In me and under my mother encouragement, my father agreed.Speaking of with on the father examination place, Xu Zhixiao is proud together.
Experienced richly once worked as supply teacher
Xu labor ancestral home Jiangsu, after in 1985 the high school graduated, cannot enroll same year’s college entrance examination because of the heavy cold, afterward because of the family reason, he gave up the college entrance examination. I at that time was 19 years old, for subsidy home, to the school in native place has worked as supply teacher. In this period I have studied independently the pedagogical kind of special course. Because the wages are not high, has done for two years later, I go out to work first, latter returns to home village to work at farming. Although does not stop rushes about, but I have not always given up studying, so long as has the time to read.Xu Gong told his experience to the reporter.
In 1992, Xu Gonglai, from spreading one’s wares on the ground for sale the start, has completed the primitive accumulation slowly. Afterward, he starts to manage the child toy and small commodity wholesale business, now redoes the non-staple food product production wholesale, has become a typical businessman. Because business development is smooth, Xu Gong has bought the house in 2003 in Lanzhou, moved Lanzhou the registered permanent address of wife and child. Many years are busy with business although Xu Gong has had no time to study, however he has not always forgotten going to college matter. Now, the country cancels college entrance examination age limit, Xu Gong had the opportunity to recompense the long-cherished wish finally.
The fathers and sons change classrooms with the reference appendix family in
In son and under wife the encouragement, I and son registered together, prepares to enroll this year’s college entrance examination.Xu Gong told the reporter, to let both sides can enter the condition, he moved the classroom to the family. Now Xu Gong has given the wife to handle hand in all business, he and son with all one’s strength reference appendix, we every day studies for 12 hours, the mutual supervision, encourages mutually.
Study atmosphere unprecedented upsurge of Xu. Xu labor’s family interviewed when reporter yesterday to saw that the area about 60 square meters living room piles up with each kind of college entrance examination to review the material. I gain admission to the university certainly to spend some energy compared to the child, look has bought many materials, studies assiduously with the son together.Xu Gong explained to the reporter. Is confident facing the college entrance examination fathers and sons
When I go to school the result has been good, the middle school is in the class healthy, studious, and helpful student, although had not traced the textbook for a long time, but is not strange to essential knowledge.Xu Gong is confident to tell the reporter, before his sciences and engineering, studies very well, he does not plan to hire the family education, does not plan the newspaper supplementary class, only wants to study independently with the son at home.
Xu Gong said that he wants to test the teachers’ training colleges. If cannot pass an examination this year, next year will then test, must pass an examination an ideal university.
(This article originates: Western Business) 
On 2010-01-29, In Macro-Economy, By znnw
Lending curbs may help economy: Mobius
China’s lending slowdown may benefit the domestic economy by reducing risk and investors should still buy shares of the nation’s banks, investor Mark Mobius said.
“I don’t see a slowdown in lending as a bad thing,” Mobius, who oversees about $34 billion in emerging markets funds as chairman of Templeton Asset Management Ltd, said yesterday. “It moderates risk to some degree because people don’t go overboard.”
Chinese banks have begun restricting new loans, responding to a push by regulators to contain credit after a surge in lending in the first half of this month, according to people familiar with the situation. That’s stoking concern a government clampdown on lending will slow growth in the world’s third largest economy.
Recent gains by Chinese stocks had been overdone, while local banks have yet to tap fully potential demand for individual loans, Mobius said. The Shanghai Composite Index has dropped as much as 23 percent from a 14-month high set in August, after having doubled from its November 2008 low. The measure is currently 13 percent below last year’s peak.
“The market was due for a correction,” he said. “I don’t see the start of a huge bear market any time soon. As the Chinese get more into spending rather than saving, the banks will do very well. The consumer market really has just scratched the surface.”
Global equities tumbled last week after higher-than-expected economic growth in China fueled concern that borrowing costs will rise to prevent the economy from overheating.
GDP expanded 10.7 percent while consumer prices rose a higher-than-estimated 1.9 percent in December from a year earlier, according to official data.
Every major stock index tracked globally by Bloomberg has fallen this year, amid proposed crackdowns by the US on the banking industry and unwinding of government stimulus measures worldwide. The MSCI Emerging Markets Index, which jumped 75 percent in 2009, has dropped 5.3 percent this year.
Biggest risks
The three biggest risks to China are the country’s reliance on demand for its exports, the supply of money, and potential losses by companies, in China and overseas, from derivatives, Mobius said.
Mobius said on Jan 25 in Bangkok that he still doesn’t believe there’s a property bubble in China. He had said on Jan 7 he’s buying shares of Chinese developers because consumer demand will increase and government efforts won’t hurt economic growth.
Property prices in 70 cities across China climbed 7.8 percent in December, the fastest pace in 18 months, a government report showed this month. China’s property sales jumped 75.5 percent to 4.4 trillion yuan last year, led by Zhejiang province and Shanghai.
‘Too much demand’
China’s property-market data may be masking the degree that speculation is driving prices in some of the larger cities, a World Bank economist said on Jan 25. Only some areas in the Chinese economy are overheating, such as the Shanghai property market, Mobius said. “There’s too much demand, not enough supply,” he said. “If you travel around the country, this is not the average situation.”
Mobius also said the price of commodities, including some precious metals, will climb. Metals prices fell yesterday on concern that China’s measures to curb economic growth may hurt demand. “Commodities are going to continue their upward trend,” he said. “I’m a big fan of palladium. It may even outpace platinum.”
On 2010-01-29, In Macro-Economy, By znnw
China’s CCI rises in Q4 of 2009
China’s consumer confidence index (CCI) rose to 103.9 in the fourth quarter last year, up 3.1 percentage points from the previous quarter, said a report released on Jan 26 by the China Economic Monitoring &Analysis Center under the National Bureau of Statistics.
The rise was largely due to consumers’ optimistic judgement on the country’s economic outlook and strong expectation for employment and personal income, said the report.
It also showed 79 percent of Chinese consumers were optimistic toward the country’s macroeconomic situation, an increase of 36 percentage points from the third quarter.
The report revealed that personal income and health remained top concerns, with 43 percent of respondents saying they paid close attention to the issue of personal income.
Some 68 percent of respondents expected price rises this year.
The CCI measures consumers’ opinions on employment, the economy, regular income, the stock market and quality of life.
China’s economy expanded 8.7 percent in 2009 from a year earlier, exceeding the government’s annual growth target of 8 percent.
On 2010-01-29, In Macro-Economy, By znnw
IMF: China’s economy up 10 percent in 2010
The International Monetary Fund (IMF) said Tuesday the global economy is recovering faster than previously anticipated and will grow 3.9 percent this year and 4.3 percent in 2011.
China, the largest emerging economy, will expand 10.0 percent this year and 9.7 percent next year, much better than previous forecasts.
And India is expected to expand 7.7 percent this year and 7.8 percent next.
The IMF said it had revised upwards its earlier forecast for global growth by 0.75 percentage point from the October 2009 forecast.
But the recovery is proceeding at different speeds around the world, with emerging markets, led by Asia relatively vigorous, but advanced economies remaining sluggish and still dependent on government stimulus measures, the IMF said in an update to its World Economic Outlook.
According to the update, output in the advanced economies is now expected to expand by 2 percent in 2010, following a sharp decline in output in 2009.
In 2011, growth is projected to edge up further to 2.5 percent.
Among advanced economy forecasts, growth in the United States, the world’s largest economy, will reach 2.7 percent this year, a sharp 1.2 percent increase from the prior forecast.
The euro are is expected to grow 1 percent this year and 1.6 percent in 2011, while Japan is seen expanding 1.7 percent this year and 2.2 next.
“In spite of the revision, the recovery in advanced economies is still expected to be weak by historical standards, with real output remaining below its pre-crisis level until late 2011,” said the report.
Moreover, high unemployment rates and public debt, as well as not-fully-healed financial systems, and in some countries, weak household balance sheets are presenting further challenges to the recovery in these economies.
Growth in emerging and developing economies is expected to accelerate to about 6 percent in 2010, following a modest 2 percent in 2009, said the IMF in the update.
“In 2011, output is projected to accelerate further,” it said, noting that stronger economic frameworks and swift policy responses have helped many emerging economies to cushion the impact of the unprecedented external shock and quickly re-attract capital flows.
But the IMF also stressed that within both groups, growth performance is expected to vary considerably across countries and regions, reflecting different initial conditions, external shocks, and policy responses.
“For instance, key emerging economies in Asia are leading the global recovery,” said the IMF in the update. “A few advanced European economies and a number of economies in central and eastern Europe and the Commonwealth of Independent States are lagging behind.”
Meanwhile, the rebound of commodity prices is helping support growth in commodity producers in all regions, and many developing countries in sub-Saharan Africa that experienced only a mild slowdown in 2009 are well placed to recover in 2010.
“For the moment, the recovery is very much based on policy decisions and policy actions,” said IMF Chief Economist Olivier Blanchard in an IMF video interview. “The question is when does private demand come and take over. Right now it’s ok, but a year down the line, it will be a big question.”
IMF Managing Director Dominique Strauss-Kahn has warned that countries risk a return to recession if anti-crisis measures are withdrawn too soon.
Moreover, the IMF also warned financial conditions have improved further but remain challenging.
“Financial markets have recovered faster than expected, helped by strengthening activity. Nevertheless, financial conditions are likely to remain more difficult than before the crisis,” it said.
Crucially, there remains a pressing need to continue repairing the financial sector in advanced and hardest-hit emerging economies.
In these cases, policies are still needed to tackle bank’s impaired assets and restructuring, said the IMF, also urging policymakers to move boldly to reform the financial sector to reduce the risks of future instability.
On 2010-01-29, In Macro-Economy, By znnw
LG Electronics targets to double share in North American air conditioner market
South Korea’s LG Electronics, the largest air conditioner manufacturer in the world, said Tuesday it is targeting a twofold jump in its commercial air conditioner market share in North America.
In a related move, LG participated in the 2010 AHR Expo Monday in Orlando, Florida to unveil 25 new commercial air conditioner models and Energy Star-labeled residential models, the company said.
LG also said it has been expanding its infrastructure for commercial air conditioners (CAC) in the North American market, as it has opened its second LG CAC Training Academy last December with plans to build two more by the end of the year.
The AHR Expo is the world’s largest heating, ventilation, air conditioning, and refrigerating exposition, where more than 1,800 exhibiting companies from over 120 companies showcase their new product lines.
The Energy-Star label, awarded by the U.S. Department of Energy and the Environmental Protection Agency, is only given to products that prove it is significantly more energy-efficient than regular products.
