ChiNext stocks down — December 11
The ChiNext Index closed lower Friday as only one 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 October 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
On 2010-03-04, In Stocks, By admin
Hong Kong stocks close up 0.93%, ending 5-day decline
Hong Kong stocks swelled 0.93 percent to close at 21,902.11 on Friday, ending a 5-day decline due to bargain hunting.
The Hang Seng index opened 0.45 percent higher at 21,796.83. It ended 202.07 points higher after trading between 21,796.83 and 22,143.84 during the session. The index is down nearly 3 percent for the whole week.
The turnover fell to 68.95 billion HK dollars (about 8.91 billion U.S. dollars) from Thursday\’s 82.03 billion HK dollars ( about 10.59 billion U.S. dollars).
Analysts said they remain optimistic in the long term about local shares, though investors may sell stocks to lock in profit before the year\’s end.
Market heavyweight HSBC rose 1.75 percent to 90.15 HK dollars after falling over 5 percent in the past five sessions. China Mobile dipped 1.05 percent to 70.35 HK dollars.
Local property developers were among the biggest gainers. Cheung Kong up 2.03 percent to 100.50 HK dollars. Henderson Land rose 1.31 percent to 57.80 HK dollars and Sun Hung Kai Properties rose 2.51 percent to 118.30 HK dollars.
As for mainland lenders, ICBC gained 0.62 percent to 6.45 HK dollars, China Construction Bank was up 0.74 percent at 6.84 HK dollars, and Bank of Communications ended flat at 9.14 HK dollars.
The mainland oil shares closed higher. PetroChina up 0.84 percent, Sinopec up 0.63 percent and offshore oil producer CNOOC, 1.51 percent.
Tencent was the biggest blue chip gainer, soaring 7.96 percent to 157.30 HK dollars. Fashion retailer Esprit was 2.67 percent higher at 53.90 HK dollars. (7.743 HK dollars = 1 U.S. dollar)
On 2010-03-04, In Stocks, By admin
ChiNext stock market down on Monday
The ChiNext closed lower Monday 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 October 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 1.71% on Monday
Chinese equities rose 1.71 percent Monday, led by banking stocks.
The benchmark Shanghai Composite Index went up 1.71 percent, or 55.58 points, to close at 3,302.90. The Shenzhen Component Index gained 0.47 percent, or 64.57 points, to close at 13,940.44.
Combined turnover was 231.1 billion yuan ($33.8 billion).
Losers outnumbered gainers by 517 to 305 in Shanghai and 499 to 255 in Shenzhen.
On 2010-03-04, In Stocks, By admin
China approves three more QFIIs
The China Securities Regulatory Commission in November approved the Qualified Foreign Institutional Investor (QFII) license to the BNY Mellon Asset Management International, the Manulife Asset Management (Hong Kong) and the Nomura Asset Management, the Shanghai Securities News reported on Tuesday.
As of the end of October, 78 QFIIs had been approved with an investment quota of $15.48 billion, Sun Lujun, a State Administration of Foreign Exchange (SAFE) official announced Monday.
Sun said that QFIIs had invested 75.6% of their total assets in the stock markets by the end of October and their bank savings had dropped from 41.8 percent at the beginning of 2009 to 16.6 percent at the end of October.
He added this indicated policies aimed at encouraging middle and long-term investors had gained some effects and that QFIIs\’ confidence on Chinese A-share markets had been rising.
So far, there are 91 QFIIs in China with 16 gaining their qualification this year.
On 2010-03-04, In Stocks, By admin
China outstrips US as center for IPOs
China has outstripped the US in the amount of money raised from stock listings, underscoring the region\’s stronger economy and a resurgence in investment.
Companies have raised nearly $52 billion from initial public offerings on exchanges in Hong Kong and the Chinese mainland so far this year, according to financial research firm Dealogic. That\’s about twice as much as the some $26.5 billion in American IPOs. In 2007, the amount of money raised from IPOs in Hong Kong and the mainland also exceeded the US total.
Hong Kong alone has drawn more than $27 billion this year, making the southern Chinese financial center the world\’s top city for equity capital raising for the first time, according to Dealogic\’s records dating to 1997. Since 2000, Wall Street has led every year except for 2006, when London was the destination of choice.
Chinese companies, looking to capitalize on liquidity created by government stimulus measures and raise their international profile, were behind all but a handful of the region\’s IPOs this year.
But even a couple of Western companies moved to cash in while solidifying their links to a region expected to help underpin their growth for years. US casino companies Las Vegas Sands and Wynn Resort both floated Hong Kong shares of their Macau operations in recent months.
Analysts point to a number of lackluster listings as a sign of investor fatigue that could slow the pace of offerings in the near term.
Over the long run, though, the trend is likely to continue even once the US regains some vitality as more and more companies seek a toehold in Asia.
\”China is where most of the growth will be compared to other countries in the world,\” said Belle Liang, head of research at Core Pacific-Yamaichi International. \”Where else can you see this kind of growth?\”
Companies from other parts of the world, including Russian aluminum gain Rusal, are also eying Hong Kong listings.
Greater Chinese IPOs were big in number and size.
Among them: the $7.3 billion IPO from China State Construction Engineering Corp., which listed in Shanghai. The company, builder of the \”Water Cube\” swimming center for the Beijing Olympic, produced this year\’s second-largest after Banco Santander Brasil SA\’s $7.5 billion IPO, according to Dealogic.
On 2010-03-04, In Stocks, By admin
Morgan Stanley sees \’boom and bust\’ for China stocks
China stocks are headed for a \”boom and bust\” in 2010 because a rally in the first half may stall as inflation accelerates and the government withdraws some stimulus, Morgan Stanley said.
\”We see a temporary window of high growth and low inflation in the first half of 2010 followed by rising inflation worries in the second half,\” Morgan Stanley analysts led by Jerry Lou wrote in a report. \”This means an equity market boom and bust in the same year.\”
The MSCI China index may rise to 81.7 next year, higher than an earlier forecast of 74.1, the analysts said. They cut their forecast for the Hang Seng China Enterprises Index by 5.3 percent to 15399 to reflect the valuation of bank shares and raised their estimate for Hang Seng Index by 11 percent to 25716.
Morgan Stanley\’s forecasts translate into gains of as much as 25 percent for mainland shares and an 18 percent gain in Hong Kong equities from Tuesday\’s close.
The MSCI China, tracking mostly mainland companies traded in Hong Kong, fell 1 percent to 65.11 yesterday, while the Hang Seng Index declined 0.9 percent to 21611.74. The gauges have both climbed more than 50 percent this year.
Analyst expectations of strong growth in China appear to be \”unanimous\”, with earnings-per-share for the MSCI China forecast to grow 21 percent, the Morgan Stanley analysts said. This means that the cost of capital and the strength of the US dollar will be a bigger factor for Chinese equities next year.
China\’s government will probably adopt a \”moderate\” exit to its monetary and fiscal policies in order to ensure that infrastructure projects will be completed, the report said. High domestic grain prices relative to international markets will provide an \”inflation buffer\”, Morgan Stanley said.
Still, a strong recovery in developed economies and potential inflation \”shocks\” could send mainland and Hong Kong shares lower more than 20 percent from Tuesday\’s level, Morgan Stanley said. The brokerage\’s so-called bear-case scenario forecasts a drop to 50.4 for the MSCI China and a decline to 17161 for the Hang Seng Index.
\”Growth generally leads inflation by six months in the US, which means a growth shock in the US might lead the inflation shock this time – if there is one in 2010,\” the analysts said. \”If the US property market rebounds surprisingly, we would sell China equities because inflation could shock and the dollar strengthen.\”
Investors should own consumer, insurance, Internet and media, phone and energy shares in China next year and hold fewer banks, developers and materials suppliers because of the risk of a policy exit, the brokerage said.
China stocks will probably be in a \”slowly rising bull market\” next year, Royal Bank of Scotland Group Plc analyst Wendy Liu said yesterday in a Bloomberg Television interview in Hong Kong. Still, so-called asset plays including banks and property may need to \”calm down a bit\” after this year\’s rally, she added.
On 2010-03-04, In Stocks, By admin
Chinese shares fall, driven by weak property stocks
Chinese equities fell on Tuesday, led by real estate developers after the State Council, the Cabinet, decided on Monday to curb the trend of soaring housing prices in some cities.
The benchmark Shanghai Composite Index edged down 0.86 percent, or 28.44 points, to close at 3,274.46 points.
The Shenzhen Component Index lost 0.82 percent, or 114.6 points, to close at 13,825.84 points.
Combined turnover totaled 213.2 billion yuan (31.2 billion U.S. dollars), shrinking from 231.1 billion yuan on the previous trading day.
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.
