China Eximbank to sell 10 bln yuan 7-year financial bonds
The Export-Import Bank of China (China Eximbank) said Friday it would sell 10 billion yuan (1.46 billion U.S dollars) worth of seven-year floating-rate financial bonds on October 13.
The benchmark interest rate of the bonds equaled the one-year fixed deposit interest rate set by the People\’s bank of China for financial institutions. The interest rate spread will be fixed through bidding by the financial bonds underwriting group.
It will be the first time the bank issue seven-year financial bonds in 2009. However, the bank has already issued other financial bonds for seven times this year, worthing 101.37 billion yuan.
On 2010-03-04, In Stocks, By admin
On 2010-03-04, In Stocks, By admin
Investors cut holdings as govt ups efforts to prevent bubbles
An investor monitors stocks at a brokerage in Shanghai. [China Daily]
Investors cut their holdings of Chinese equities in January as the government stepped up efforts to cool asset bubbles, according to EPFR Global.
Global emerging markets and Asia excluding Japan equity funds reduced their average holdings of Chinese shares by 0.72 percent and 1.13 percent, respectively, EPFR said in a statement received on Thursday.
China\’s weighting in global and Pacific funds also declined, according to the statement.
China\’s stocks are the worst performers in Asia this year after the central bank twice ordered banks to set aside more funds as reserves and officials stepped up curbs on property speculation.
The Shanghai Composite Index has dropped 7.9 percent in 2010, while the Hang Seng China Enterprises Index, tracking Hong Kong-traded mainland companies, has lost 7 percent.
\”China\’s story continued to sour\” for global developing nation and Asian fund managers as \”the country\’s government tries to engineer an exit strategy that prevents asset bubbles and keeps inflation within reasonable bounds without drastically curtailing growth\”, EPFR said.
China stock funds have posted net outflows in nine of the first 11 weeks of the year even as emerging-market funds continued to draw fresh money, the Cambridge, Massachusetts-based researcher said in a March 18 statement.
Indonesia, Turkey
Indonesia\’s weighting within Asian equity funds rose to a 12-year high, EPFR said. Data for the month ended Jan 31 was released to clients on Feb 23, the company said.
The Shanghai Composite Index fell 1.2 percent to 3019.18 at the close on Thursday, the worst performer in Asian trading, while the Jakarta Composite Index climbed 0.88 percent to 2799.149. The Indonesian gauge is the best performer in Asia this year.
Funds tracking global emerging stock markets also boosted their investments in developing Europe to a 15-month high and raised their holdings of the Middle East and Africa from a 12- year low set in December, EPFR said.
Turkey was the fund group\’s biggest \”overweight\” for a sixth straight month, followed by Russia, Indonesia, Thailand and Mexico, according to the statement.
Six of the eight major equity fund groups tracked by EPFR, including those investing in Asia and global emerging market stocks, also increased their cash weightings in January.
Bloomberg News
On 2010-03-04, In Stocks, By admin
Chinese shares open higher Tuesday
Chinese shares opened slightly higher on Tuesday, with the benchmark Shanghai Composite Index up 0.30 percent to open at 3,085.74.
The Shenzhen Component Index added 0.31 percent to open at 12,754.70.
The ChiNext exchange, the country\’s start-up board for small and medium-sized companies, continued to plunge at the opening with most stocks falling, after 20 of its 28 stocks down 10 percent, the daily limit, on Monday.
On 2010-03-04, In Stocks, By admin
Hong Kong stocks widen losses to close down 1.76%
Hong Kong stocks opened slightly lower on Tuesday and widened their losses during the day\’s trading before closing down 1.76 percent.
The benchmark Hang Seng Index opened down 0.1 percent at 21,598. 63, ignoring moderate overnight gains on the Wall Street, and was down 0.71 percent by lunch break. It moved between 21,684.73 and 21,223.42 during the day\’s trading.
Turnover totaled 61.01 billion HK dollars (7.82 billion U.S. dollars), compared with Monday\’s 65.12 billion HK dollars (8.35 billion U.S. dollars).
Analysts said they expected the Hang Seng Index to continue to look to the United States and the Chinese mainland economy for further directions, tipping for the blue chip index to be bound within the 21,000-22,000 range in the near term.
Only five of the 42 constituents of the Hang Seng Index gained ground on Tuesday, two remained unchanged and the other 35 ended lower. The properties sub-index shed 2.71 percent, making it the leading loser among the four major stock categories. The finance category lost 1.65 percent, and the commerce and industry 1.75 percent.
The utilities shares ended down 0.98 percent.
Market heavyweight HSBC lost 0.75 percent at 85.7 HK dollars, contributing a decline of 23 points to the blue index. Local unit Hang Seng Bank edged up 0.18 percent.
China Mobile, the leading mobile carrier on the Chinese mainland, was down 1.76 percent. Smaller rival China Unicom tumbled 3.17 percent at 7.78 HK dollars.
The mainland-headquartered banks were all losers, with the biggest commercial lender ICBC down 2.06 percent, China Construction Bank down 2.36 percent and Bank of China down 2.65 percent. Insurance chip China Life was down 2.43 percent and Ping An 2.01 percent.
The oil shares were also lower, with PetroChina down 2 percent, Sinopec down 1.2 percent and offshore oil producer CNOOC down 2.86percent.
Cheung Kong, the flagship of Hong Kong\’s richest man Li Ka- shing, finished the day down 1.92 percent at 97.05 HK dollars. SunHung Kai Properties, the leading residential housing developer in Hong Kong, tumbled 3.74 percent at 113.4 HK dollars.
Instant messaging and online gaming software provider Tencent shed 3.56 percent, giving up some of the sharp gains recorded on Monday.
HKEx, the sole exchange operator in Hong Kong, was down 1.87 percent. (7.8 HK dollars = 1 U.S. dollar)
On 2010-03-04, In Stocks, By admin
Chinese shares fall on liquidity concerns
Chinese equities fell on Wednesday following media reports that some major banks would stop lending for the rest of January and the central bank would increase interest rate on Friday.
The benchmark Shanghai Composite Index dropped 2.93 percent after rising for four consecutive days to close at 3,151.85 points.
The Shenzhen Component Index dived 3.25 percent, or 434.52 points, to close at 12,916.15 points.
Combined turnover totaled 326.6 billion yuan (47.8 billion U.S. dollars), up from 270.91 billion yuan on the previous trading day.
Losers outnumbered gainers by 771 to 108 in Shanghai and 765 to 55 in Shenzhen.
Media reports said that Chinese authorities had already given verbal orders to some banks to stop lending for the rest of January in an effort to cool the economy.
However, this was denied by China\’s top banking regulator Liu Minkang on Wednesday at the Asia Financial Forum held in Hong Kong, but Liu did say that the country\’s overall credit growth would be restricted to 7.5 trillion yuan in 2010, compared with last year\’s record 9.59 trillion yuan.
Premier Wen Jiabao said at a cabinet meeting on Tuesday that China will manage the pace of credit growth and guard against financial risks.
Concerns among investors were intensified after a Hong Kong-based TV station reported Wednesday afternoon that the central bank would raise interest rates by 0.27 percent on Friday to curb the growing inflation expectation.
China\’s central bank raised the reserve requirements on banks by 0.5 percentage points on Monday, the first increase in 18 months, which analysts forecast would help freeze 250 billion yuan of liquidity.
Banking shares slumped across the board by 3.17 percent, led by Huaxia Bank which dropped by 4.24 percent. Industrial and Commercial Bank of China, the country\’s largest commercial bank, sank 2.57 percent to 4.93 yuan, while Bank of China lost 1.68 percent to 4.1 yuan.
Shares of property developers declined by 3.1 percent. China Vanke Co., the country\’s largest property developer by market value, sank 2.98 percent to 9.76 yuan. Poly Real Estate Group Co., the country\’s second largest developer, lost 3.62 percent to 20.51 yuan.
On 2010-03-04, In Stocks, By admin
Chinese shares close mixed at midday Friday
Chinese shares closed mixed at midday on Friday. The benchmark Shanghai Composite Index was slightly up 0.08 percent, or 2.66 points, to close at 3,267.29 points.
The Shenzhen Component Index lost 0.43 percent, or 59.15 points, to close at 13,700.69 points.
The Hushen 300 Index reflecting the performance of the country\’s Shanghai and Shenzhen stock exchanges ended 0.11 percent lower midday at 3587.05 points.
On 2010-03-04, In Stocks, By admin
ChiNext stock index down
The ChiNext Index closed lower on Friday as only four of the 28 shares at China\’s start-up board for small and medium-sized enterprises went up.
The board, which is based in Shenzhen and started trading on Oct. 30, 2009, is tailored to the needs of enterprises engaged in independent innovation and other enterprises with great growth potential.
On 2010-03-04, In Stocks, By admin
Chinese shares close up 1.61%
Chinese equities rose Friday with the benchmark Shanghai Composite Index up 1.61 percent, or 52.42 points, to close at 3,317.04, led by heavyweights.
The Shenzhen Component Index increased 0.91 percent, or 125.09 points, to close at 13,884.93.
Combined turnover rose to 406.55 billion yuan (59.52 billion U.S. dollars) from 314.94 billion yuan on the previous trading day.
Losers outnumbered gainers by 686 to 185 in Shanghai and 697 to117 in Shenzhen.
Most heavyweights gained. Industrial and Commercial Bank of China Ltd., the nation\’s biggest listed lender, gained 2.85 percent to 5.41 yuan. China Vanke Co., the country\’s biggest listed property developer, rose 3.37 percent to 11.97 yuan. PetroChina Co., the country\’s largest oil producer, was up 3.33 percent to 13.97 yuan.
\”Signals from the government reassured investors on the continuity of the positive macro-economic policies and boosted the heavyweights in the banking, chemical and coal sectors,\” said Zhang Xiang, an analyst with Guodu Securities.
A meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee agreed last Friday that the country would continue the proactive fiscal policy and moderately easy monetary policy next year.
On 2010-03-04, In Stocks, By admin
Hong Kong stocks close slightly lower
Hong Kong stocks tracked an overnight decline on Wall Street to close lower 0.25 percent Friday, ending a four-day rally of the Hang Seng Index.
The benchmark index opened 0.68 percent lower at 22,400.49. It moved between 22,240.86 and 22,528.84 before ending down 55.72 points at 22,498.15. Turnover rose to 74.04 billion HK dollars (about 9.56 billion U. S. dollars) from Thursday\’s 70.07 billion HK dollars (about 9.05 billion U. S. dollars).
The upward momentum of the index will be in place for the remaining weeks of the year because of rising optimism over a sustainable global economic recovery and as concerns over Dubai\’s debt crisis have receded, said analysts.
Three of the four major categories lost ground on Friday, with the utilities sub-index falling 0.73 percent, the commerce and industry losing 0.55 percent, and the finance, 0.11 percent. The properties sub-index was the only one to gain ground, going up 0.30 percent.
The China Enterprises Index rose 0.02 percent to close at 13, 461.55.
Market heavyweight HSBC finished down 0.37 percent at 93.45 HK dollars and its local unit Hang Seng Bank down 0.17 percent to 116.60 HK dollars.
China Mobile, the leading mobile carrier on the Chinese mainland, closed up 0.20 percent at 74.10 HK dollars.
Stocks of insurance firms were strong. Top insurer China Life swelled 2.63 percent to 41.00 HK dollars, while smaller rival Ping An rose 1.58 percent to 74.00 HK dollars. PICC swelled 4.42 percent to 7.09 HK dollars. But China Taiping dropped 1.41 percent to 28.05 HK dollars.
The leading Chinese mainland commercial lenders failed to extend recent strength, with Bank of China leading the decline, down 1.55 percent at 4.46 HK dollars. China Construction Bank dipped 0.28 percent to 7.18 HK dollars and ICBC lost 0.15 percent to 6.74 HK dollars. Bank of Communications was unchanged.
The mainland oil shares were mixed. PetroChina up 0.10 percent, while Sinopec down 0.30 percent. Offshore oil producer CNOOC ended flat.
As for local developers, Sun Hung Kai Properties, the largest residential housing developer in Hong Kong, rose 0.08 percent to close at 118.60 HK dollars. Henderson Land fell 2.31 percent to 59. 15 HK dollars. Cheung Kong, the flagship of Hong Kong\’s richest man Li Ka- shing ended flat.
Consumer product exporter Li &Fung dropped 3.76 percent to close at 33.25 HK dollars, the biggest fall among blue chips. (7. 742 HK dollars = 1 U.S. dollar)
On 2010-03-04, In Stocks, By admin
ChiNext stock index higher
The ChiNext Index closed higher on Monday as only five of the 28 shares at China\’s start-up board for small and medium-sized enterprises went up.
The board, which is based in Shenzhen and started trading on Oct. 30, 2009, is tailored to the needs of enterprises engaged in independent innovation and other enterprises with great growth potential.
