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Apr-16-2008

Tokyo gains as Shanghai drops before data release

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HONG KONG, April 15 (Reuters) - Chinese property firm Fantasia Group (China) Co Ltd plans to raise about $500 million in a Hong Kong initial public offerings in the third quarter, sources close the deal said on Tuesday, amid Beijing's clampdown on bank lending to the real estate sector. (More...)
The delay in repatriating the red chips is yet another example of the volatility that has rocked the market - which last year saw the main Shanghai index jump 97 per cent as floods of liquidity fuelled strong demand for A shares. (More...)
Turnover on the mainboard was relatively modest at HK$74.85 billion - down from HK$77.14 billion on Friday. (More...)
First-quarter profit exceeded forecasts at regional banks, including U.S. Bancorp, Regions Financial, M&T; Bank Corp and Marshall & Ilsley Corp. Shares in the companies jumped between 1.5 per cent and 8.4 per cent on the news. (More...)
DBS Group Research said China's economy likely grew at a slower pace in the first quarter, rising 10.5 percent from a year earlier. (More...)
Shares of Commonwealth Bank fell by 2.3 percent to 40.49 Australian dollars and Toll Holdings plunged sharply by 15 percent to 8.05 Australian dollars in Sydney. (More...)
The Shenzhen Composite Index sank 6.3 percent to 1,009.16. (More...)
PetroChina closed 5.4 percent lower at HK$9.80. (More...)
Cheung Kong Infrastructure, which owns 39 percent of Hongkong Electric, rose 4. 5 percent to 32.60 HK dollars. (More...)
As one of the Big Four state-owned commercial banks, ICBC picks up pace in overseas acquisitions, however, it remains cautious about buying U.S. assets. (More...)
The blue-chip Hang Seng Index.HSI may head for the 23,000 level if the index fails to hold above a floor of 23,400, Kwong added. (More...)
'Investors expect further policy tightening on the mainland. (More...)

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HONG KONG, April 15 (Reuters) - Chinese property firm Fantasia Group (China) Co Ltd plans to raise about $500 million in a Hong Kong initial public offerings in the third quarter, sources close the deal said on Tuesday, amid Beijing's clampdown on bank lending to the real estate sector. The listing hopeful is shrugging off a 14 percent drop in Hong Kong's benchmark index.HSI so far this year on concerns about a U.S. recession and spreading credit market woes, which have scared off companies planning $7 billion in Hong Kong IPOs so far this year, according to Thomson Financial data. The Shenzhen-based developer focuses on residential and office buildings, and has about 2 billion yuan (US$286 million) in assets, it said on its Web site. [1] The bank is one of three Asian banks interested in acquiring shares in Hong Kong's Wing Lung Bank. China Construction Bank fell 5.8 percent to HK$6.32 on worries that earnings by China's number three bank will not be sustained this year. The bank said Friday that its net profit increased 49 percent to 69.1 billion yuan in 2007, beating analyst forecasts. China has postponed initial public offerings on the mainland by Hong Kong-listed companies in case the IPOs cut their valuations, the South China Morning Post reported Monday, quoting unidentified sources. The newspaper said the mainland authorities had been planning to allow companies such as China Mobile, CNOOC, Lenovo and China Netcom to list in Shanghai in June, but that these IPOs might be postponed until next year.[2]

HONG KONG, April 14 (Reuters) - Hong Kong shares tracked mainland Chinese losses to fall 3.5 percent on Monday, as banking stocks led a sell-off on resurgent fears that strong economic data could trigger a new round of austerity measures by Beijing. China-backed and Hong Kong-incorporated red chip companies also came sharply into focus after a newspaper reported that Beijing was discouraging them from listing shares in Shanghai because of weak sentiment on domestic bourses. "All eyes are now on the data due from China this week, not to mention earnings from some major U.S. firms," said Ben Kwong, chief operating officer from KGI Asia. "It's no surprise there was a correction after recent gains. That's no disappointment."[3] I do believe that around the 3,200 level, the A-share index should find very good support," said Peter Lai, director at DBS Vickers in Hong Kong. In Hong Kong, the benchmark Hang Seng Index dropped 3.5% to 23,811.20, while the Hang Seng China Enterprises Index lost 5.2% to 12,664.21, hurt by both the performance in Shanghai and the Friday sell-off on Wall Street. Lai said Hong Kong stocks were expected to be volatile ahead of earnings reports from U.S. companies this week. "The fluctuation will be wide and wild," he said.[4] Hong Kong's stock market is likely to experience increased volatility this week, as uncertainty over the United States economy persists after a surprisingly weak earnings report from General Electric, according to analysts. The Hang Seng Index could fall by 1,000 points if major U.S. financial institutions such as JP Morgan Chase, Merrill Lynch and Citigroup announced disappointing quarterly results this week and U.S. economic figures to be released were worse than expected, they said.[5]

China Vanke and Poly Real Estate Group, the mainland's largest and second-largest developers by market value, fell 10 per cent to close at 22.92 yuan and 24.30 yuan, respectively. In Hong Kong, Guangzhou R&F; Properties, KWG Property Holding, Beijing Capital Land and Shanghai Forte Land bore the brunt of the reaction along with mainland financials which were targeted because of their uncertain earnings prospects for this year. "The financial stocks had a very strong rebound in the past three weeks on the back of stronger than expected first-quarter results," said Dominic Chan, an analyst at CLSA. "But going forward, we shouldn't extrapolate that kind of strong quarterly performance for the rest of this year."[6] Soaring valuations on the A-share market then whetted the appetite of the Hong Kong-listed red-chip firms for a domestic listing and several prepared for the step by moving assets into overseas shell companies. Market sources said some of the Hong Kong-listed red-chip companies last year appointed investment banks to arrange their mainland listings. The chill that has since fallen over the market has led to a review of those plans. The Shanghai Composite Index closed at 3,492.89 points on Friday, down 42.7 per cent from its record high in mid-October, and some analysts predicted the stock benchmark could fall further to 2,800 points as investors continued to sell their A shares because they remained overvalued when compared with overseas stocks.[7] In mainland China, the benchmark Shanghai Composite Index ended up 1.6 per cent at 3,348.35 after falling 5.6 per cent Monday. "Sentiment is fragile and investors are unwilling to enter the market before the release of major economic data later this week," said Zhang Yang, an analyst at Orient Securities.[8]

The Hang Seng Index lost 699.75 points at the market opening, erasing all of last week's gains, before skidding even further to finish the day down 856.59 points or 3.47 per cent at 23,811.2. The news was even worse on the mainland, with the Shanghai Composite Index falling 5.62 per cent to 3,296.672 points for its largest decline since January 28.[6]

COSCO Pacific, Asia's third-largest container-terminal operator, closed at a three-week low on concern earnings would suffer as slower growth dampened trade flows. China Overseas Land & Investment, a builder controlled by the country's construction ministry, suffered its biggest decline in a month after the Chinese mainland's central bank governor said there was room to raise lending and deposit rates. The Hang Seng Index lost 856.59, or 3.5 percent, to close at 23,811.2, its sharpest drop since March 17. The Hang Seng China Enterprises Index, a measure of so-called H shares of mainland companies, fell 5.2 percent to 12,664.21, its steepest fall since March 17.[9] Hang Seng China Enterprise Index, which tracks the overall performance of 43 Chinese mainland state-owned enterprises on Hong Kong Stock Exchange, edged up 1.2 points or 0.01% to 12,665.41 points.[10] HONG KONG, April 15 (Xinhua) -- Hang Seng China Enterprises Index on Hong Kong Stock Exchange edge up Tuesday 1.20 points, or 0.01 percent higher, to close the day's trading at 12,665.41.[11]

Japan's Nikkei 225 index fell 3.1 percent to close at 12,917.5, while Hong Kong's Hang Seng index was down 3.5 percent at 23,797.4 in afternoon trading.[12] Japans Nikkei 225 fell 3.1 percent, while Hong Kongs Hang Seng Index lost 3.5 percent. Disappointment over a lack of market-supporting moves by Beijing dampened buying sentiment on both mainland exchanges, analysts said.[13] Elsewhere in the region Japan's Nikkei 225 index closed 3.1 percent lower and Hong Kong's Hang Seng index fell 3.5 percent.[14] Hong Kong's Hang Seng index has been down more than three and a-half percent.[15] Introduced on Oct. 3, 2001 and readjusted on Sept. 11, 2006, Hang Seng Mainland Composite Index gauges the performance of 103 Hong Kong-listed companies with principal places of business in Hong Kong and the Chinese mainland.[11]

Apr. 15, 2008 (China Knowledge) - Hong Kong stocks plunged on Monday on sell-off, tracking mainland Chinese woes as concern over Beijing's potential measures to curb inflation arose after the release of mainland consumer price index and first-quarter Gross Domestic Product data this week weighed on the market. The rest of this article can only be viewed by China Knowledge Premium Members.[16] Chinese mainland financial and property firms took a particularly big hit on speculation that upcoming economic data will prompt Beijing to curb credit further. Dealers here said that near-term outlook for Hong Kong market would stay volatile given more results of economic data due out in U.S. this week, while current sell-off in A-share markets may not pause in near-term. The U.S markets slumped Friday after GE, considered a barometer of the U.S. economy due to its diversified operations, reported a 6.0 percent drop in first-quarter profit and cut its forecast for the full year.[17] HONG KONG, April 14 (Reuters) - Hong Kong shares tracked mainland Chinese losses to fall 3.5 percent on Monday, with financial plays leading the slide on fears strong economic data this week could trigger another round of austerity measures by Beijing.[18] HONG KONG (Thomson Financial) - Hong Kong shares closed sharply lower Monday following a steep decline on mainland markets as investors turned cautious before the release of Chinese inflation data later this week.[2]

HONG KONG (Thomson Financial) - Hong Kong shares were higher in early trade Wednesday on optimism that China's economy remained robust and inflation slowed in the first quarter, which should help boost companies' earnings. China will announce later in the day its gross domestic product and inflation data for the January to March period.[19] HONG KONG, Apr. 15, 2008 (Thomson Financial delivered by Newstex) -- Hong Kong shares turned higher in afternoon trade after mainland Chinese stock markets recovered, boosted by the government's offer of tax rebates to oil companies. China's Ministry of Finance will grant value-added tax (VAT) rebates to Sinopec (NYSE:SNP) Group and National Petroleum Corp. 'Hong Kong stocks went up because China was also higher this afternoon,' said Francis Lun, general manager at Fulbright Securities.[20] HONG KONG (Thomson Financial) - Hong Kong shares finished a volatile trading day slightly higher on Tuesday, with gains driven by a rebound in the mainland bourses after Beijing said it would grant value-added-tax (VAT) rebates to China National Petroleum Corp and Sinopec Group.[21]

HONG KONG (Thomson Financial) - Hong Kong-listed China Construction Bank may sell 40 billion yuan ($5.7 billion) worth of bonds due in 10 years to boost capital, the South China Morning Post reported on Tuesday, citing an unnamed banker. China's third-biggest lender may sell 5 billion yuan of the bonds in Hong Kong, its first debt sale in the city, the newspaper said. Last week, CCB said its 2007 net profit rose 49 percent to 69.1 billion yuan after its fee and commission income more than doubled from a year earlier.[22] Angang Steel tumbled 5.5 percent to HK$17.96. China's second-biggest steelmaker said Monday its first-quarter net profit was little changed at 2.44 billion yuan from 2.39 billion yuan a year before. Hong Kong's property counters were mostly higher on optimism the city's de facto central bank will continue cutting its base interest rate along with the Federal Reserve, boosting demand for real estate.[23] 'There are more signs that the worst is over,' Gorges said. 'In Hong Kong and China, companies are still expected to do well this year. The country's top lender, Industrial and Commercial Bank of China (ICBC), earlier forecast that its first-quarter profit probably rose more than 50 percent from a year ago. Smaller rival China Merchants Bank said its profit for January to March more than doubled from a year earlier. Easing inflation may keep the Chinese authorities from further raising its benchmark one-year interest rates this year.[19] Even if it comes out that the central bank is going to raise interest rates in China more, I think that also makes the Renminbi more attractive and the best way for international investors to gain exposure to Renminbi are actually Chinese equities because otherwise it is difficult to buy it and the interest rates also still right now on the international markets like in Hong Kong is just above 1%, but inflation is 8.7%. It could actually benefit the Chinese stock markets.[24]

The Dow Jones Industrial Average fell 256.56 or 2.04 per cent on Friday, the S&P; 500 shed 27.72 points or 2.04 per cent while the Nasdaq Composite dropped 61.46 points or 2.61 per cent. Patrick Yiu Ho-yin, an associate director at CASH Asset Management, said the uncertain U.S. economy would give investors an excuse to dump Hong Kong stocks this week.[5] BANGKOK, Thailand — Asian stocks rebounded modestly Tuesday as investors scooped up stocks that had fallen in the previous day's plunge, but many remained anxious about the outlook for the U.S. economy and further policy tightening in China. In Japan, the benchmark Nikkei 225 stock index rose 73.07 points, or 0.57 per cent, to 12,990.58, recovering some of its 3.1 per cent plunge Monday.[8]

Since reaching a peak of nearly 32,000 points in October, the index has fallen 26 percent as investors dumped shares on worries about a recession in the U.S. and a slowdown in China's economy as the mainland authorities tightened the reins on money supply through higher interest rates and reserve requirements for bank deposits. The International Monetary Fund (IMF) recently cut its 2008 growth forecast for the U.S. economy to 0.5 percent from 1.5 percent.[23]

Kwong is expecting the market to dip below 23,400 during the course of the week. 'This week is all about consolidation,' he said. The Shanghai Composite Index plunged 5.6 percent after China's central bank chief said over the weekend that the authorities would continue to tighten monetary policy to curb inflation even after the yuan's 4 percent gain against the U.S. dollar this year. Analysts were expecting China to ease its monetary policy this year as a stronger yuan will help ease inflation by making imports such as oil less expensive.[2] The index was down 1.8 percent as of the 11:30 a.m. break in trading in Shanghai after falling 6.5 percent yesterday. To cool prices, China has let the yuan appreciate 4.4 percent this year versus the dollar, reducing import costs. It has also imposed price controls and raised banks' reserve requirements to a record.[25]

The delay in repatriating the red chips is yet another example of the volatility that has rocked the market - which last year saw the main Shanghai index jump 97 per cent as floods of liquidity fuelled strong demand for A shares. At that time, Beijing hoped the repatriation of red-chip shares at valuations that corresponded with their Hong Kong market prices could help stabilise the overheated equity market and pre-empt a boom-to-bust scenario. [7] The index tumbled 3.1 percent Monday. Hong Kong shares held steady on Tuesday, biding their time on the eve of the release of crucial Chinese economic data.[26] HONG KONG, April 15 (Reuters) - Hong Kong shares held steady on Tuesday, biding their time on the eve of the release of crucial Chinese economic growth and consumer inflation data.[27]

Hong Kong developer Henderson Land Development fell 2.6 percent to HK$56.65. Tycoon Lee Shau-kee has raised his stake in Henderson Land to 52.94 percent from 52.85 percent. Lee bought shares in his company three times this month, according to a disclosure to the stock exchange.[2] Shares of TABCorp Holdings sank 7.2% and Tatts Group declined 2.2%. Both gaming stocks slumped more than 20% Friday, after the Victoria state government decided to end their duopoly over gaming machines by 2012. In Hong Kong, shares of property developer Cheung Kong (CHEUY) dropped 2.6%, on reports it's in talks to acquire failed carrier Oasis Hong Kong Airlines, which halted operations in the past week. Oasis founder Raymond Lee reportedly pledged his 60% stake in the airline earlier this year as collateral for a HK$70 million ($9 million) personal loan from Cheung Kong, that was used to help shore up the airline.[4]

Hong Kong and mainland stocks paced a regional rout yesterday as investors tracked losses on Wall Street and braced for further signs of a global economic slowdown. The sell-off was sparked after the Group of Seven nations said that the global economic crisis was likely to get worse before it got better, and General Electric shocked investors by saying it would not meet its profit forecast for this year.[6] SINGAPORE (Thomson Financial) - Asian stocks tumbled Monday, tracking Wall Street's decline Friday after a surprise earnings miss by conglomerate General Electric, with a gloomy communique from the weekend G7 meeting adding to the downdraft. HONG KONG (XFN-ASIA) - Nomura International (Hong Kong) kept its "strong buy" recommendation on China Construction Bank (CCB), citing its better-than-expected net interest margin (NIM) in 2007.[28] Hong Kong's stock index tumbled 3.5 percent Monday, dragged down by sharp losses on Wall Street last week and lower-than-expected corporate earning.[14]

The H-shares index, tracking the performance of mainland stocks listed in Hong Kong, dived 5.2 percent at 12,664.21 points.[17] HONG KONG, April 15 (Xinhua) -- Hong Kong stocks rose 90.13 points, or 0.38 percent, to close at 23,901.33 on Tuesday, following the rebound of major markets in the region, especially mainland's Shanghai market.[29]

In China and Hong Kong, property developers and other blue chips also fell on fears that authorities may further tighten credit to combat inflation. On the Shanghai exchange, property sector leader China Vanke and Poly Real Estate Group both fell by the daily 10 percent limit.[14] Among Chinese developers listed in Hong Kong, China Overseas Land dropped 5.6 percent, Shimao Property fell 7.3 percent and Guangzhou R&F; Properties tumbled 11.4 percent. Analysts and traders said they expect the Hong Kong market to trade in a narrow range for the remainder of the week.[14]

Small enterprises even those in sunset industries can ride the tide in a buoyant economy if they are flexible enough, says Eddy Li Sau-hang, president of the Hong Kong and China Economic and Trade Association. Li, founder of his watch company, Campell Timer, was among the first batch of Hong Kong manufacturers to set up factories in Guangdong in 1989. After that, he watched the territorys manufacturing sector continue to lose competitiveness to its mainland counterparts. In 2003, the year of the SARS outbreak, Li shifted his business strategy from purely that of a manufacturer to include property investment and equity holdings. At that time, not only was property priced at just half of the land cost, but also it was cheap to borrow money. That year, Li pumped HK$300 million to start up a family foundation in conjunction with a property management unit. He started acquiring old industrial blocks and renovated them into modern buildings, leasing premises to small innovative entrepreneurs. He focused on areas including Wong Chuk Hang, Shau Kei Wan, A Kung Ngam, and Yau Tong.[30]

Thursday April 17 -Japan revised Feb industrial output -Japan weekly capital inflows -Australias Oxianas annual general meeting -Singapore March non-oil domestic exports -Malaysia Feb manufacturing sales -Malaysias Public Bank Q1 earnings -Philippines March foreign portfolio investments -China Q1 economic data -Chinas Maanshan Iron FY results -Beijing Shougang Co Ltd. FY results -Hong Kong Jan-March unemployment rate -Hong Kong-listed China National Building Material FY results -Hong Kong-listed Gome FY results -Hong Kong-listed Shui On Land FY results -Indias MMTCs Q4 results -EUs McCreevy addresses EPC corporate breakfast -EUs McCreevy addresses Cork Chamber of Commerce -Euro zone Feb foreign trade -ECBs Tumpel-Gugerell in panel discussion in Mannheim, Germany -ECB monthly bulletin -EU rules on proposed acquisition by Groupama of OTP Banks insurance, 6 percent group stake -EU rules on proposed acquisition by Randstad of Vedior -US Initial weekly jobless claims -US April Philadelphia Fed Survey -US March composite indexes -US March NY employment and unemployment -US Google Inc Q1 results.[31] Wednesday April 16 -Australias AXA Asia Pacific annual general meeting -SKoreas March unemployment rate -Philippines March balance of payments -Hong Kong-listed Dongfeng Group FY results -Hong Kong-listed Hopson Development FY results -Hong Kong-listed Techtronic Industries FY results -Hong Kong-listed Guangzhou Investment FY results -Hong Kong-listed Geely Auto FY results -Hong Kong-listed Shanghai Electric FY results -Hong Kong-listed Want Want China FY results -Chinas Liuzhou Iron & Steel FY results -Indias Petronet LNG FY results -Euro zone March HICP -EU rules on acquisition by Vivendi Games of Activision Inc. -EU rules on acquisition by Associated British Foods of GB Ingredients yeast business -Chizhov, head of Russian mission to EU and former Finnish PM speak on the EU regarding Russia at Residence Palace -ENELs head of European affairs at energy package debate at Stanhope Hotel -Belgian PM Yves Leterme meets EUs Barroso -EUs Reding meets Elfriede Sole, head of Austrian telecoms regulator -US March Real Earnings -US March new residential construction -US March consumer prices -US March industrial production and capacity utilization -US March Cleveland Fed Median CPI -US Fed Beige Book -US March NJ employment, unemployment -US Abbott Laboratories Q1 results.[31] Friday April 18 -Japan March consumer confidence survey -Indonesias Antam shareholders meeting -Bursa Malaysias Q1 results -Singapores MobileOne Q1 results -Singapores Ascendas REIT year to March results -China Southern Airlines FY results -Hong Kong-listed Agile Property FY results -Hong Kong-listed CITIC Resources FY results -Hong Kong-listed Galaxy Entertainment FY results -Hong Kong-listed Jinjiang Hotels FY results -Hong Kong-listed Sinotruk FY results -Hong Kong-listed Yanzhou Coal FY results -Chinas Tangshan Iron & Steel Co. FY results -Chinas COFCO Property (Group) FY results -Chinas Chongqing Changan Automobile Co. FY results -Chinas Gree Electrical Appliances FY results -Guangzhou Baiyun International Airport Co 2007 results -Chinas Inner Mongolia Baotou Steel Union 2007 results -Indias wholesale price index for week till April 5 -Indias Wipro FY results -EU rules on acquisition by Suez Environment of SITA Sverige stake -EUs McCreevy addresses National Payments Conference 2008, Dublin -EUs Kroes addresses ASPEN European dialogue on Europe, U.S. and the global disorder - the need for a new Bretton Woods in Paris -US March regional & state employment, unemployment -US Xerox Corp Q1 results.[31]

Wednesday April 23 -Australias Q1 consumer price index data -Australia and New Zealand Banking Group H1 to March financial results -Australias BHP Billiton Ltd. Q3 production report -Australias Santos Ltd. Q1 production report -Australias Zinifex Ltd. Q3 production report -Malaysia March inflation -Singapore March CPI -Indonesias Bank Niaga shareholders meeting -Indonesias Global Mediacom shareholders meeting -Euro zone provisional April PMIs -US March NAR existing home sales -US Boeing Co. Q1 results.[31] Thursday April 24 -Japan Feb all-industries index -Japan 2-year government bonds auction -Japan weekly capital inflows -Reserve Bank of New Zealand interest rate decision -Caltex Australia AGM -Australias Rio Tinto Ltd. annual general meeting -Indonesias Bank Permata shareholders meeting -Philippine central bank policy meeting -Indias Maruti Suzuki India FY results -Indias HDFC Bank FY results -Indias ACC Q1 results -Euro zone Feb current account -ECB conference in Frankfurt -US March revised building permits -US Local Area Personal Income, 2006 -US March advance durable goods -US initial weekly jobless claims -US March help wanted index -US March new residential sales -US March state and local building permits -US April Kansas City Fed manufacturing survey -US 3M Co. Q1 results.[31] Monday April 21 -Japans Feb Tertiary index -Japans revised Feb leading index of business condition -Australias Q1 producer price index data -Indias Axis Bank FY results -Indias Satyam Computer Services FY results -Indias Tata Consultancy Services FY results -ECB annual report; Papademos appears before European Parliament economic and monetary affairs committee in Strasbourg, France -US March Chicago Fed national activity index -US Eli Lilly & Co. Q1 results.[31] Tuesday April 15 -Japans 30-year government bonds auction -Japans Tokyo, Osaka March condominium sales -Australias Macquarie Group briefing in protected investment solutions -Singapores Feb retail sales -Singapore Airlines March load factor data -Philippines Feb overseas workers remittances -Hong Kong-listed China Merchants Holdings FY results -Hong Kong-listed PICC P&C; FY results -Hong Kong-listed China Aoyuan FY results -Shanghai Electric Co. FY results -Chinas Shandong Chenming Paper Holdings FY results -Chinas Chenzhou Mining Group Co. FY results -Taiwan 35 billlion twd, 5-year govt bond offer -Indias Infosys Technologies FY results -Indias HCL Technologies Q3 results -ECB main refi result -EUs Almunia speaks on Future challenges facing the euro, ESC, Brussels -Suezs Etienne Davignon, EUs Michel and Vaclav Havel launch foundation for democracy -ECBs Tumpel-Gugerell speech in Athens -US March producer prices -US April Empire state manufacturing survey -US Intel Corp Q1 results.[31]

Turnover on the mainboard was relatively modest at HK$74.85 billion - down from HK$77.14 billion on Friday. "This is most likely profit- taking pressure as turnover was relatively low," said First Shanghai Securities strategist Linus Yip Sheung-chi. Yip said investors were taking a cautious approach as they wait for direction from upcoming economic data and corporate results from China and the United States. China is due to announce March's inflation figure and first-quarter gross domestic product growth data this week. In the United States, financial giants like JPMorgan Chase, Merrill Lynch and Citigroup will report their earnings. [32] Mainboard turnover.VM.HK dipped to HK$74.8 billion ($9.6 billion) from HK$77.14 billion on Friday. The Shanghai benchmark index.SSEC ended 5.6 percent lower on Monday, marking its biggest drop since January, on rumours that authorities might take fresh action to curb property prices. Concern over potential measures by Beijing to curb inflation after the release of mainland consumer price and first-quarter Gross Domestic Product data this week weighed on the market.[3]

The Shanghai A-share index also fell 5.6%, to 3,459, registering losses of more than 37% in 2008 to date. Market sentiment was pressured by speculation that China's central bank, the People's Bank of China, may tighten monetary policy further after the release this week of consumer price index data.[4]

At the International Monetary Fund's meeting in Washington, Italian Finance Minister Tommaso Padoa-Schioppa said the "chain of bad news may not have come to an end" and officials urged banks to take steps to relieve the credit squeeze. COSCO Pacific fell HK$1.22 (15 U.S. cents), or 8.1 percent, to HK$13.78, its lowest close since March 25, the biggest percentage loser on the index. China COSCO Holdings, the world's largest operator of dry-bulk ships, lost HK$1.42, or 7.3 percent, to HK$18.08, its sharpest decline since March 14.[9] Stocks also fell after General Electric, the world's No. 1 maker of power-plant turbines, jet engines and locomotives, said first-quarter earnings plunged 12 percent. China Overseas lost 5.6 percent to HK$14.28, its biggest drop since March 17. Guangzhou R&F; Properties slumped 11 percent to HK$19.50, its largest decline since March 17. Ping An Insurance (Group) retreated 5.1 percent to HK$62, its steepest drop since March 20.[9] Bargain-hunting activity in late morning trade helped trim overall losses, although investors continued to reduce positions in Chinese property stocks. China Eastern Airlines tumbled 5.9 percent after the airline announced weak core 2007 results and as investors remained concerned about its earnings outlook amid rising oil prices.[33] The Dow Jones Industrial Average fell 2 percent after General Electric Co. (nyse: GE - news - people ) reported disappointing first-quarter results. Wall Street is expected to continue to be on the edge ahead of some key earnings results this week. 'Investors are cautious about earnings in the U.S. Citigroup (nyse: C - news - people ) and Merrill Lynch (nyse: MER - news - people ) are reporting this week. Both will likely be bad,' said Francis Lun, general manager at Fulbright Securities.[34] In Europe, the London market's FTSE 100 was down 0.7 percent in midday trading, while Germany's DAX fell 0.8 percent and France's CAC 40 slipped 0.3 percent. The declines extended a slump on Wall Street on Friday after reports of weak consumer sentiment and disappointing earnings from General Electric Co., which cast a gloomy light on a slew of earnings reports expected this week including those from banking giants J.P. Morgan Chase & Co., Citigroup Inc. and Merrill Lynch & Co.[14]

First-quarter profit exceeded forecasts at regional banks, including U.S. Bancorp, Regions Financial, M&T; Bank Corp and Marshall & Ilsley Corp. Shares in the companies jumped between 1.5 per cent and 8.4 per cent on the news. After the closing bell, Intel Corp posted revenue just ahead of Wall Street's expectations and stuck to its full-year profit margin target, driving its shares up 7.4 per cent in extended trade. It had closed 1.1 per cent higher ahead of the earnings report. [35] Capping the gains in Hong Kong in the early session were concerns about the U.S. economy, with American companies reporting disappointing first-quarter results. Wall Street declined overnight after Wachovia Corp., the fourth-biggest U.S. bank, unexpectedly reported a $393 million first-quarter net loss, compared with its $2.3 billion profit a year before.[23] HONG KONG (Dow Jones) -- Asian markets declined Monday on mounting fears about the U.S. economy as well as a sell-off on Wall Street, with Tokyo and Hong Kong hit by banks such as Mitsubishi UFJ Financial Group and HSBC Holdings, while steelmakers weighed in Shanghai and Seoul. Shanghai-listed shares were the worst hit, with the benchmark Shanghai Composite, which tracks both the yuan-denominated A shares and the foreign currency denominated B-shares, sinking as much as 5.6% to 3,296.57.[4] HONG KONG (Thomson Financial) - Hong Kong shares finished the morning session sharply lower on Monday, following a slump on the Shanghai market on concerns Beijing's continued monetary tightening measures could weigh on major Chinese companies' earnings.[34] HONG KONG (Thomson Financial) - Hong Kong shares finished a volatile morning session little changed on Tuesday, shedding early gains after bargain-hunting interest was dampened by weakness on the Shanghai bourse due to speculative trade.[33]

Bank of China fell 2.9% to HK$3.66, while China Mobile lost 3.7% to HK$126. PetroChina plunged 5.4% to HK$9.80, one the few shares there to fall more than its Shanghai listing. That may indicate some late strength in the U.S.-listed ADRs due to overselling in Hong Kong.[36] In Hong Kong, shares of market heavyweight HSBC Holdings (HBC) dropped 1.6%, while Industrial & Commercial Bank of China fell 5.9% to halt a three-day winning run.[4]

Apr. 14, 2008 (China Knowledge) - Hong Kong stocks rallied on Friday, hitting two-month high, powered by the banking shares as they expected rosy profit in the first quarter of this year.[37] The Chinese lender reaped US$11.6 billion net profit in 2007, up 65% year-on-year. Based on its stock price on the Hong Kong stock market, its market value stood at US$248 billion, the largest in the world.[38] The H-shares index, initiated in August 1994 and readjusted on Sept. 10, 2007, tracks the overall performance of 43 Chinese mainland state-owned enterprises listed on the Hong Kong Stock Exchange.[11] Passers-by walk past a bank displaying the movements of the Hang Seng Index on an electronic board of the Hong Kong Stock Exchange in Hong Kong Monday, April 14, 2008.[14] Hong Kong's Hang Seng Index broke a two-day winning streak, as it opened lower and moved sideways for the rest of the session.[39]

Tracking losses in the mainland, the Hang Seng China Enterprises Index of H shares tumbled 692.91 points or 5.19 percent to 12,664.21.[32] The Hang Seng China Enterprises Index tracked the losses on mainland markets, ending 692.91 points or 5.2 percent lower at 12,664.21.[2]

Hang Seng China H-Financials Index moved up 2.03 points, or 0. 01 percent, to close at 16,029.33.[11]

The benchmark Hang Seng Index.HSI ended at 23,811.20, weighed down by a near-6 percent dive in China Construction Bank (0939.HK: Quote, Profile, Research ).[3]

The market is looking for some positive news or any excuse to buy shares.' At 3:04 p.m. (0704 GMT), the Hang Seng Index was 97.65 points or 0.4 percent higher at 23,908.85. [email protected] Copyright Thomson Financial News Limited 2008.[20] "The Hang Seng Index will fall about 500 points to 24,000 today following the decline in the U.S. market last Friday, which was hit by the disappointing General Electric results," said Sun Hung Kai Financial strategist Castor Pang Wai-sun. Further falls could be in store if more bad news came from the U.S., he said.[5] Lackluster results from General Electric coupled with a steep drop in the consumer sentiment index of the University of Michigan proved to be the undoing of the U.S. markets last week, when the major U.S. averages chalked up weekly losses. The Hang Seng Index opened lower at 23,968 compared to its previous closing level of 24,668.[40] Traders also expressed disappointment over no concrete measures being announced by the G-7 ministers, who met at Washington over the weekend. U.S. stocks turned in a lackluster performance on Friday on the back of dismal results from conglomerate General Electric (GE) and a drop in the University of Michigan's consumer sentiment index to its lowest level since 1982, The major U.S. averages posted losses for the week ended April 11th.[39]

HONG Kong's benchmark stock index dropped the most in three weeks yesterday after the Group of Seven finance ministers said global economic prospects had weakened.[9] The benchmark stock index dropped the most in three weeks yesterday after the Group of Seven finance ministers said global economic prospects had weakened. Several Chinese companies suffered their biggest declines to date.[9]

Apr. 14, 2008 (China Knowledge) - Chinese shares edged up in small volumes on Friday led by stocks in banking and aviation industry. The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, edged up 0.61% or 21.15 to 3492.89 points after fluctuating between 3517.82 and 3462.14 points. The rest of this article can only be viewed by China Knowledge Premium Members.[41] In China, the benchmark Shanghai Composite index closed down by 5.6 percent to 3,296.672 points, led by property developers and metal producers.[42] In Asia, the biggest declines were in China, where the Shanghai Composite Index plunged 5.6 percent and the Shenzhen index lost 6.3 percent.[14] The region's biggest declines came in China, where the Shanghai Composite Index plunged 5.7 percent by midafternoon to 3,294.0.[12]

In China, the Shanghai Composite Index has been almost six-percent lower. Friday, poor first-quarter earnings from General Electric sharpened worries over both corporate profits and the wider American economy, a vital Asian export market.[15] Disappointment over a lack of market supporting moves by Beijing also dampened buying sentiment on the Hong Kong and Shanghai exchanges, analysts said. Poor first-quarter earnings from General Electric Co. sharpened worries over both corporate profits and the wider American economy, a vital Asian export market.[12]

"Despite closing almost at the day high on Friday, expect a volatile week in Hong Kong and Asia ahead of earnings in the U.S., as well as a whole series of macro news from the U.S. and China.[36] HONG KONG (XFN-ASIA) - China Construction Bank was lower in Hong Kong on profit-taking after reporting in-line 2007 results. TAIPEI (XFN-ASIA) - Taiwan Cooperative Bank (5854.TW) and Cardif, the life insurance unit of BNP Paribas insurance arm BNP Paribas Assurance, are planning a life insurance joint venture, the Economic Daily News reported, without naming its sources.[28] HONG KONG (XFN-ASIA) - UBS maintained a "buy" call on China Construction Bank (CCB), with target price of 7.7 hkd, citing the mainland lender's strong operating performance in 2007.[28]

Ping An Insurance shed 6.6 percent. Analysts said losses in Hong Kong were milder than those on mainland bourses, because fund houses took advantage of lower share prices to return to the market.[14]

"But the outlook is not that bad. On the bright side, if the mainland announces a slower inflation rate this week, it will help both the A-share market and Hong Kong stocks," said Mr Yiu. He said the market would take heart if March inflation on the mainland is between 8 per cent and 8.2 per cent.[5] "Tackling inflation requires a cocktail of measures and faster currency appreciation is one important ingredient,'' said Tao Dong, chief Asia economist at Credit Suisse Group in Hong Kong. Tao expects the yuan to climb at least 10 percent versus the dollar this year after a 7 percent gain in 2007, helping to reduce inflows of trade cash that threaten to fuel inflation.[25] In Hong Kong, heavyweight HSBC fell 1.6 percent to 130.7 HK dollars and China Mobile skid 3.7 percent to 126 HK dollars, respectively.[17] Hong Kong China Gas, the city's dominant gas supplier, gained 1.6 percent to 21.75 HK dollars.[29]

China's red-chip companies like China Mobile lost as much as 3.7 percent and CNOOC dropped by 4.8 percent in Hong Kong.[42]

In Hong Kong, selling was mostly due to Chinese financial stocks, as well as heavyweights China Mobile CHL and PetroChina.[36] Apr. 16, 2008 (China Knowledge) - Hong Kong stocks closed higher on Tuesday, tracking the rebound of mainland markets.[10] Red-chip listings on the Shanghai Stock Exchange have been put on hold by the State Council because Beijing is worried that weak market sentiment will depress valuations, say sources familiar with the plans. China had planned to issue an approval to the first red-chip listing in Shanghai in June, a move that was due to give the domestic exchange a boost over its Hong Kong counterpart.[7]

HONG KONG, April 14 (Xinhua) -- Hong Kong stocks plunged 856.59 points Monday, or 3.47 percent, to close at 23,811.2 points, tracking regional markets' fall.[17] In Hong Kong, the market was lifted by gains in power providers and in sympathy with a recovery in mainland Chinese stocks.[8] Red chips are mainland companies incorporated and listed in Hong Kong with controlling Chinese shareholders. The regulators have now decided to put the "bring them back home" listing plans on hold and will not proceed until sentiment for A shares recovers, say sources.[7] Regional collectors are a growing force, too: in Sotheby's Hong Kong April sale of Chinese modern art last year, more than three-quarters of buyers were Asian. ''Many collectors from the mainland have a background in real estate and they are just beginning to collect,'' says Zheng.[43] The Hong Kong Pavilion will be an integral part of the China Pavilion at the Expo. To tap the best creative talents of local professionals, the Constitutional and Mainland Affairs Bureau and the Architectural Services Department launched the Hong Kong Pavilion Concept Design Competition earlier this year.[44] Volumes are likely to remain thin as investors stand sidelined," says Steven Wong, a trader for Daiwa Securities SMB in Hong Kong. "Listings in Shanghai are unlikely to proceed this year now. That's positive for Hong Kong at least," he adds.[36] Power companies led the gains in Hong Kong as investors sought defensive stocks.[8] Hong Kong shares made tentative gains as investors opted for defensive plays.[35]

The China Enterprises Index of Hong Kong-listed companies, or H shares, slid 5.2 percent.[3] The government aims to bring inflation down to 4.8 percent in 2008, matching the level for all of last year. The benchmark CSI 300 Index of stocks has tumbled 35 percent this year, partly on concern that government measures to cool prices will dent earnings.[25] TORONTO (Reuters) - Lofty commodity prices and the ability to turn a blind eye to signs of a U.S. recession have allowed Toronto's main stock index to outperform nearly every benchmark this year -- but the upcoming earnings season could end all that.[45]

The dollar rose to 101.20 yen from 101.01 yen late Monday in New York. Buying lost steam in the afternoon, as "traders were cautious also ahead of a slew of earnings report from U.S. financial insitututions later this week," said Koji Takeuchi, senior economist at Mizuho Research Institute. "If they are better than expected, stocks may rise again."[8] 'The market is in a correction mode now after sharp gains in the last few weeks. Investors are concerned about the economic data coming out of China and U.S. corporate earnings, including those from major financial services companies,' said Ben Kwong, research head at KGI Securities.[2] Analysts said worries of further policy tightening in China limited the local market's rise, and would likely lead to choppy trade in the near term. They also said investors are awaiting the release of major economic indicators in China this week, including the first-quarter gross domestic product data due Wednesday.[8]

The trade surplus pumped $41.4 billion into the financial system in the first quarter and foreign direct investment added $27.4 billion. Interest rates have stayed unchanged this year, after six increases in 2007, as the government tries to avoid encouraging inflows of speculative capital. Zhou Xiaochuan, the governor of the People's Bank of China, said this week that there's still room for an increase.[25] China's top credit card issuer has received regulators' approval to open a financial leasing unit with a capital of 2 billion yuan ($286 million). Last week, China's sixth-biggest lender said its net profit probably rose 140 percent in the first quarter from 2.5 billion yuan a year earlier. Other lenders were also higher.[19] China Eastern Airlines rose 1 percent to HK$3.45. The mainland's third-biggest carrier posted net profit of 268.9 million yuan for 2007, reversing a 3.3 billion yuan loss in 2006, helped by the yuan's 7 percent appreciation, which lowered the cost of servicing its U.S. dollar-denominated debt. Other mainalnd carriers were also higher.[23]

CCB that recorded a 49.27 percent annual profit growth for last year was down 5.81 percent, ICBC down 5.85 percent, Bank of China down 2.92percent, Bankcomm down 4.18 per cent, CM Bank down 4.02 percent and CITIC Bank down 3.63 percent.[17] China Overseas Land & Investments lost 5.6 percent at HK$14.28 while R&F; Properties was down 11.4 percent at HK$19.50. China raised interest rates six times last year and increased the reserve requirement for bank deposits last month to its highest on record. Last week the IMF cut its 2008 growth forecast for China to 9.3 percent from 10 percent.[2] Stocks in Asia were greeted by heavy selling to start the week, with China the worst hit as Beijing officials announced they were suspending new listings on Shanghai's stock exchange for the time being and that a coming interest rate hike remains a possibility.[36]

Martin Hennecke, Senior Manager at Tyche Group feels that the Shanghai market is one of the few markets that is still expensive now in Asia. He said that even if the Chinese central bank raises interest rates, it would make the Renminbi more attractive. He feels since the economies in Europe and U.S. were slowing down, it was safer for investors in Mainland China to stay cautious on exporters.[24] Among U.S. listings that could struggle somewhat is Baidu.com BIDU, as investors factor in the impact of interest rate hikes on consumer spending. China Mobile performed better than its smaller telco rivals, however, helped by a report issued by Citigroup recommending the company as a buy. In Japan, a strengthening yen hit most exporters, such as Canon CAJ and Sony SNE, but Nintendo NTDOY bucked the trend amid excitement over the launch of the best-selling video game, Mario Kart, for the Wii console. The game is now available in Europe and Japan, and will be released in the U.S. later this month.[36]

Hong Kong, China and basically all companies will experience the same pressure facing U.S. companies due to rising costs of raw materials and falling consumer spending,' Clarke said.[23] Financial firms and earnings reports led the decline in major markets like Japan, Australia, China and Hong Kong.[42] HONG KONG (XFN-ASIA) - Kim Eng Securities said the reported shortlisting of Industrial and Commercial Bank of China (ICBC) and Bank of Communications (BoCom) in the final round of bidding for control of local lender Wing Lung Bank comes as "a surprise".[28] Small enterprises even those in sunset industries can ride the tide in a buoyant economy if they are flexible enough, says Eddy Li Sau-hang, president of the Hong Kong and China Economic and Trade Association.[30] Li adds: China counterparts are catching up with us, equipped with better resources and support. Hong Kong industries can only take a complementary role not lead them. He says businesses also need to adapt to environmental changes. Along these lines, Campell Timer changed from being solely a manufacturer to become a more marketing-oriented enterprise.[30]

Japan's Nikkei surged 1.42% or 184.04 points at 13,174.62, while Hong Kong's Hang Seng gained 0.84% or 201.39 points at 24,102.72.[24] In Hong Kong, the Hang Seng tumbled 856 points, or 3.5%, to 23,811.20, while the Japanese Nikkei lost 406 points, or 3.1%, to 12,917,51.[36]

Hang Seng Mainland Composite Index went up 23.80 points, or 0. 55 percent, to close at 4,389.36.[11] The Hang Seng Index lost 856.59 points or 3.5 percent to close at 23,811.20, with all 43 constituents of the blue-chip index heading south. "This week the sentiment will turn more cautious," said Ben Kwong Man- bun, chief operating officer of KGI Asia, forecasting the HSI to trade within the range of 23,000 to 24,500.[32] Hang Seng China-Affiliated Corporations Index moved up 56.84 points, or 1.06 percent, to close at 5,421.02.[11]

The blue chip Hang Seng Index rose 90.13 points, or 0.4 per cent, to 23,901.33 after tumbling 3.5 per cent on Monday.[8] The Hang Seng Index has jumped 17 per cent in the past three weeks with the index closing at 24,667.79 on Friday.[5]

"If the market dropped to 20,000, then market turnover would come up and people may want to buy." The Hang Seng Index would be under heavy selling pressure this week and might find initial support at 23,400, Mr Lin said.[6]

Hang Seng Index, the benchmark, opened slightly higher at 24,442.27 points in the morning session. The rest of this article can only be viewed by China Knowledge Premium Members.[37] After fluctuating between 23,613.49 and 24,043.89 points, the blue-chip Hang Seng Index rallied 90.13 points, or 0.38% to 23,901.33.[10]

Among bank stocks, HSBC was down 0.46 percent, Hang Seng Bank up 1.11 percent, Bank of East Asia up 1.82 percent, BOC HK up 0.95percent, and StanChart down 1.23 percent.[29] Power companies were among the day's biggest winners as investors sought defensive stocks with Hang Seng utilities sub-index leaping 1.8%.[10]

Mainland A-share and H-share property plays fell into a tailspin as investors feared that the authorities might soon use tightening measures that could slow property growth. More than 10 mainland-listed property stocks dropped their 10 per cent daily limit.[6] Airline stocks buckled under pressure from higher crude prices. Shares of China Southern and Air China both fell 3.3 per cent.[35] Delta shares dropped 9 per cent and Northwest shares fell 4 per cent as the legal and regulatory hurdles were reviewed. Other airline stocks stumbled as crude oil prices continued to surge.[35]

The retailer's shares jumped 7.3 per cent, shrugging off a survey that showed British like-for-like retail sales fell in March for the first time in two years. Oil shares rallied as crude continued its record-breaking run.[35] France's CAC 40 added 14.19, or 0.30 per cent to 4780.68, while Germany's DAX picked up 30.55, or 0.47 per cent to close at 6585.05. Repsol posted its biggest gain in Madrid trading in almost six years after the Brazilian government said the Carioca oil field find off the Brazilian shore, in which it has a 25 per cent stake, may hold 33 billion barrels of oil. Its shares jumped 9.3 per cent in Spain.[35] Japanese shares gained 0.6 per cent on Tuesday as rising crude prices lifted trading houses, which tend to own stakes in overseas oil fields.[35]

Before the markets opened Monday, Wachovia Corp. reported an unexpectedly large first-quarter loss of $393 million, tainted by exposure to credit markets. The fourth-largest U.S. bank said it will cut its dividend by 41 percent to 37.5 cents per share and plans to raise $7 billion from sales of preferred shares.[14]

CNOOC (nyse: CEO - news - people ), China's biggest offshore oil producer, surged 3.3 percent to HK$12.60 dollars as international crude prices touched record highs above $112 a barrel in Asian trade, boosted by supply concerns and a sluggish U.S. dollar.[21] Index heavyweight China Mobile, Asia's largest cellphone carrier, fell 3.7 percent to HK$126.00.[2] April futures fell 3.1 percent to 23,835. Aluminum Corp of China retreated 6.5 percent to HK$12.12, its biggest drop since March 20, and China Shenhua Energy lost 4.7 percent to HK$34.30, its largest fall since March 31.[9]

Shares of China Vanke plunged sharply by 10 percent and Poly Real Estate followed by dropping 10 percent in Shanghai. Shares of Baoshan Iron & Steel Co. fell by 5.9 percent and Nanjing Iron & Steel Co. dropped by 8.5 percent, over the fears that the cost of raw materials could impact their profits.[42] Shares of HSBC Holdings shed 1.6 percent, followed by Industrial & Commercial Bank of China losing 5.9 percent, retreating last week's gains.[42] Taiwan share prices closed up 0.36 percent Tuesday on hopes of better ties with China after a landmark meeting between Taiwan's vice president-elect and the Chinese president.[26]

We hold property for stable rental income on a longterm basis, not for speculative investment. His industrial premises boast full occupancy with waiting lists, compared to only 50 percent vacancies five years ago. Li also believes in the growing story of China, so his family foundation continues to look for potential stake acquisitions in mainland enterprises that are preparing for public listings. We have been buying stakes in potential Chinese firms, mainly in manufacturers and environmental related factories, he says, adding some of them will be seeking listings in the near future.[30] Zheng, whose understanding of contemporary Chinese art comes from more than a decade of experience on the mainland and in the region, is well connected. He belongs to the same generation as many of the artists associated with his gallery. Like their careers, his began during the wild, early years of new art in China, in the 1980s. He was a painter and took part in group shows before gradually getting into curating and dealing. Throughout the early and mid-80s, Zheng recalls, mainland artists found the freedom to do what they thought was right rather than toe the party line. ''That was the time of the underground,'' he says. With a few exceptions such as the so-called Campaign Against Spiritual Pollution in 1983, when the authorities fired warning shots over the heads of any potential subversives, new Chinese art stayed off their radar.[43] "The central government is now reassessing the matter and it will take some time before the plan goes ahead." The official said it was unlikely that any red chips, including China Mobile (SEHK: 0941, announcements, news ), CNOOC (SEHK: 0883 ), Lenovo Group (SEHK: 0992, announcements, news ) and China Netcom Group (SEHK: 0906 ), would be allowed to float A shares this year.[7]

The nation's central bank increased the rate six times last year. China may raise rates two times this year, said Alex Tang, research head at Core Pacific-Yamaichi.[19]

Standard Chartered Bank expects China's inflation rate to slow to 8.2 percent in March from 8.7 percent in February, according to economist Frances Cheung. The nation's economy probably expanded at 10.5 percent in the first quarter from a year ago, she said.[19] Faster yuan gains failed to stop inflation topping 8 percent for a second straight month in March, according to the survey. China's cabinet, the State Council, said this month that the world's fastest-growing major economy faces dual risks: overheating and the threat of a slowdown.[25]

April 15 (Bloomberg) -- China's economy probably expanded more than 10 percent in the first quarter and inflation may have stayed near an 11-year high, maintaining pressure on the government to do more to cool prices.[25]

Mainland stocks plummeted led by property plays after the People's Bank of China governor said over the weekend that the central bank will stick to a tight monetary policy to curb inflation.[32] Mainland banking and property stocks led the decline on concerns that the Chinese authorities will embark on another round of austerity measures to tame inflation.[32]

'We expect a moderation in first-quarter earnings of Chinese companies due to the deteriorating economic environment,' said Daniel Chan, a senior investment strategist at DBS Bank. Stocks of mainland financial companies, which derive a substantial portion of their non-operating income from investment in the Chinese equity markets, tumbled sharply.[2] China's biggest bank is not keen on buying assets in the United States because of concern that the credit crisis may not yet be over, the Wall Street Journal reported Tuesday, quoting ICBC Chairman Jiang Jianqing. Other Chinese financial stocks were also higher.[23] SINGAPORE (Thomson Financial) - Asian stocks extended losses Monday, tracking Wall Street's decline Friday after a surprise earnings miss by conglomerate General Electric, with a gloomy communique from the weekend G7 meeting adding to the downdraft.[28]

I have bought stocks like Ping An Insurance (2318), and Bank of Communications (3328). They have so much room for development. Like mainland banks, there are areas of private banking, asset management and foreign exchange they could get into, providing earnings growth. Li, 54, earned his seed capital for his various ventures through savings, starting his own business in the mainland in 1989. I saved through my monthly salary, which was about HK$40,000 to HK$50,000, he recalls.[30] TORONTO (Reuters) - The Toronto Stock Exchange's main index shed more than 225 points on Friday, hit hard by deepening worries for a weak earnings season and another sign the United States may be sliding into a recession.[45] In early January and again in early March the Toronto Stock Exchange's S&P;/TSX composite index plunged on a slew of concerns, headlined by fears the United States, by far Canada's biggest trading partner, could fall into a recession.[45]

The Chinese mainland's benchmark Shanghai Composite Index dived 5.6 percent, close at 3,296.67.[17] The Shanghai Composite Index plunged 196 points, or 5.6%, to 3296.67 on the news, led by selling in market heavyweight Aluminum Corp. of China ACH.[36] China's Shanghai Composite Index opened lower and traded sideways in the morning before declining steadily to close down 196.22 points or 5.62% at 3,297.[39]

China's Shanghai Composite rose 1.6% to 3,348.35, after sinking 5.6% in the previous session, while the Shenzhen All share index gained 2% at 1,028.77. Both indexes overcame sharp losses earlier in the session.[46]

Elsewhere, shares of Macquarie Group gave up 3.1% and National Australia Bank lost 1.8% in Sydney, while DBS Group Holdings (DBSDY) shed 2.6% in Singapore. One exception was Mizuho Financial Group (MFG), which rose 1.7% on top of the more than 5% gains it posted Friday, as investors read the sharp losses reported by the company's securities unit in the past week as a signal that the unit's subprime mortgage-linked troubles are nearing an end.[4] LONDON (Thomson Financial) - NYSE Euronext has launched a "fast path" campaign to persuade Chinese, Indian and Russian companies planning initial public offerings in the U.S. to list partially in Europe as well. SYDNEY (Thomson Financial) - Australia's third largest bank Australia & New Zealand Banking Group Ltd. said on Monday it plans to review its involvement in securities lending after the collapse of Melbourne stockbroker Opes Prime Group.[28]

The printer-maker Canon fell by 5 percent, mobile-phone operator KDDI dropped by 7.8 percent and the office equipment maker Ricoh tumbled by 4.4 percent. "In terms of importance to its relevant market, Canon is as important to the TSE as GE is to the NYSE," said Pali International analyst Pelham Smithers in a report, according to The Financial Times news report on Monday.[42]

Along with bearish news from China, a report in the London Times that analysts are expecting additional writedowns from Citigroup C and Merrill Lynch MER totaling $15 billion rattled investors.[36] Mainland museums wouldn't touch the new work and private galleries did not exist. The first sign of a market for the emerging art was interest from foreign collectors and in the 90s ''China fever'' began to take hold, stoked by curious expats in Beijing ''' investors such as Uli Sigg, a Swiss collector who boasts arguably the biggest and best collection of new mainland art ''' and exhibitions in Europe.[43]

Industrial and Commercial Bank of China (SEHK: 1398 ) and China Construction Bank (SEHK: 0939, announcements, news ) Corp led declines, skidding 5.85 per cent and 5.81 per cent, respectively.[6] BP was also buoyed by news that China had accumulated a stake of just under 1 per cent in the oil major.[35]

China Vanke dropped 3.4 per cent, while Poly Real Estate Group fell 4.2 per cent.[8] Among defensive utility stocks, HK & China Gas gained 1.6 per cent, CLP rose 2.3 per cent, and HK Electric climbed 1.1 per cent.[35] Elsewhere, Australia's main stock index rose 1.1 per cent, while Taiwan's key index inched up 0.4 per cent.[8] The Labor Department's overall Producer Price Index jumped 1.1 per cent in March, or nearly twice the gain of 0.6 per cent that economists had expected.[35]

Investors are also waiting for U.S. economic data for March, including retail sales and the consumer price index.[14] In economic news, the New York Federal Reserve Bank's Empire State manufacturing index showed some stabilisation in April after tumbling to a record low in March.[35]

Elsewhere, in South Korea, the Kospi index closed down by 1.9 percent to 1,746.71 points, New Zealand's NZX 50 index droped by 0.5 percent to 3,470.96 points.[42] In Australia, the S&P;/ASX 200 index closed lower by 1.8 percent to 5,342.40 points.[42]

Market heavyweight PetroChina fell 3.3 percent to 16.91 yuan, helping pull the index lower.[13] Property sector leader China Vanke fell by the daily 10 percent limit to 22.92 yuan.[13] China's largest non-life insurer posted a 43.8 percent increase in net profit in 2007 to 3 billion yuan, less than analysts have predicted. Other insurers were also down.[19]

Financial stocks performed mixed amid fears that Beijing would revive measures to tame inflation. It announced a 44% increase in 2007 net profit to RMB 2.99 billion yesterday. It expected to raise as much as RMB 10 billion (US$1.43 billion) in its planned IPO in Shanghai.[10] A profit warning from State Street Corp saw it fall 9.9 per cent after the financial services firm said it faces billions of dollars of unrealised losses on some investments.[35]

On the downside, Crocs plunged 43.2 per cent and was the Nasdaq's third most-actively traded issue after the shoe retailer warned late Monday that first-quarter earnings won't meet forecasts. Northrop Grumman fell 6.9 per cent after the defence contractor said it expects to take a first-quarter pre-tax charge related to delays in its amphibious-assault-ship program due to quality concerns. Of those that have already reported this week, Wachovia, which posted an unexpected loss on Monday, was down 0.5 per cent.[35] Shares of JPMorgan Chase, which reports earnings on Wednesday, advanced 1.5 per cent.[35] The company forecast its earnings per share during the current financial year started April 1 would grow by a minimum of 16.3% and revenues would increase by at least 19.2%. Shares of market heavyweight and conglomerate Reliance Industries advanced 2.7% in the afternoon, on media reports that it is talking to global energy firms, including Chevron Corp. (CVX), Exxon Mobil Corp. (XOM), British Gas and Royal Dutch Shell (RYDAF) for a stake sale in one of its offshore gas fields.[46]

Rio is set to report quarterly sales on Wednesday. Elsewhere, AstraZeneca jumped 8.6 per cent after the Anglo-Swedish drug maker said it had settled U.S. patent litigation against India's Ranbaxy Laboratories over its top-selling drug, ulcer pill Nexium. On the downside, Carphone Warehouse slumped 13.3 per cent and touched its lowest point in over two years after Europe's biggest independent mobile phone retailer missed fourth-quarter forecasts for broadband and lowered its outlook due to increased costs.[35] Reporting after the close, Washington Mutual booked a quarterly loss of US$1.40 per share, versus forecasts for a loss of US$1.05 per share. It was up 3 per cent at close but down 0.5 per cent in extended trade.[35]

Blue chips led the gains, with Citic Securities up 3.4 per cent and China Eastern Airlines 2.8 per cent higher.[8] Semiconductor Manufacturing International Corp surged 42.3 per cent on talk that the loss making firm was close to securing a major investor.[35] Among the trading houses, Mitsui added 3.1 per cent and Mitsubishi Corp climbed 2.3 per cent.[35]

Crude fell by 43 cents to $109.71 a barrel in electronic trading, after it was recorded at $110.14 a barrel on the New York Mercantile Exchange on Friday.[42] Chinese oil stocks were up after crude oil futures touched a record $114.08 a barrel in New York trading Tuesday.[19]

Apart from being sound business, a wider audience for Chinese contemporary art is also likely to bring it into the global art mainstream, which is one of Zheng's ambitions. His discussion of Chinese art and its critical reception is peppered with the words ''professional'', ''international standards'' and ''academic orientation'', and there's little doubt that extending his operations to Hong Kong is a stepping stone on the path to greater global recognition for mainland work. Whether the mainland art scene is better off with a more conventional art scene may be a moot point, but with Zheng's foresight and familiarity with its key figures, Chinese contemporary art seems assured of an even higher profile in the future.''''''[43] Time will tell, although the early signs are encouraging: the gallery's debut show is a properly curated exhibition in which Norman Ford, who was curator for the Hong Kong show Star Fairy at the Venice Biennale last year, has taken a museum approach, with a detailed catalogue that includes an essay and a wide-ranging interview with the mainland artist.[43] The mainland's initial proposal to list the red chips at home led the Hong Kong government to lobby against the plan, since it was concerned that the move would hurt sentiment on the Hong Kong market.[7]

The U.S. market fell only slightly last night, so that could ease selling pressure in Hong Kong.[23] The Hong Kong dollar is showing weakness against the U.S. dollar and is currently fetching 7.7914 domestic dollar against the U.S. currency.[40] MANILA (Reuters) - Merly Paz, a Filipina domestic worker in Hong Kong, has stopped sending money for the construction of her home in southern Iriga City because the peso value of her U.S. dollar-pegged salary has fallen sharply.[45] "My salary is limited so I placed the house on hold," said 31-year-old Paz who has been working in Hong Kong for nearly 8 years.[45] Zheng is also very particular about space. ''Hong Kong has good galleries,'' he says, ''but usually they are not well equipped to house big exhibitions. There's simply not a lot of space in this city.'' Beijing has many problems, but a lack of space is not among them. Since the mid-1990s, a cluster of galleries has developed in Dashanzi ''' also known as the 798 art district ''' a largely disused factory compound in the north of the city where his gallery is now based. ''Running a gallery in Beijing has some advantages,'' says Zheng, '' and we would like to bring some of these benefits to Hong Kong.'' He has at least managed to overcome the space issue: his new gallery, in the basement of the Hollywood Centre, occupies 1,100 square feet.[43]

"The Shanghai Expo will provide an opportunity for us to showcase Hong Kong's city charms, quality city life and to promote Hong Kong's creative industries," Mr Tang said during the prize presentation ceremony at the Hong Kong Visual Arts Centre.[44]

The Hong Kong market is currently oversold,' said Castor Pang, strategist at Sun Hung Kai Financial.[23] Witnessing the evolution of the Hong Kong manufacturing industry over the past 20 years, Li acknowledges that there is no going back.[30] ''Chinese art went through an ice age that lasted almost a century. It's small wonder it's now growing all the more vigorously.'' Zheng says Hong Kong is the right spot to repeat his successes in Bangkok and Beijing.[43] The A-share price correction since October 2007 resembles the bursting of the red-chip bubble in Hong Kong in the mid-1990s.[47] The winning design concept will be adopted as the blueprint for the detailed design and development of the Hong Kong Pavilion.[44] According to the designers' idea, the middle level is mostly open, transparent space. This level will provide the pavilion with a distinctive look that symbolises the infinite imagination and creativity of Hong Kong and its people.[44]

DBS Group Research said China's economy likely grew at a slower pace in the first quarter, rising 10.5 percent from a year earlier. China's GDP has been growing in access of 11 percent, and last week, the government raised its estimate of 2007 growth to 11.9 percent from the previous estimate of 11.4 percent. [14] The parent of China's biggest coal producer, China Shenhua Group, may buy a 10 percent stake in Anglo American, the world's second-biggest mining company, the South China Morning Post reported Monday.[2]

On the mainland telecom stocks side, China Mobile was up 0.87 percent, China Unicom up 1.13 percent, Netcom flat, and China Telecom down 1.2 percent.[29] Coal stock China Shenhua was down 3.23 percent, China Coal down3.13 percent and Yanzhou Coal down 5.13 percent.[17]

Resource stocks also declined on a fall in crude oil and metal prices, with Aluminum Corp. of China (ACH) shedding 9.4% and Jiangxi Copper Co. (JIXAY) skidding 8.6% in Shanghai, while Korea Zinc Co. fell 3.2% in Seoul.[4] China Life Insurance LFC declined 5.8% to 28.60 yuan, while Ping An PIAIF, the country's second-largest insurer, fell 5.1% to 62 yuan. Commodity stocks also suffered in the selloff, as oil and gold fell after OPEC was rumored to be "quietly" cutting its output of crude.[36]

In China, real estate stocks moved lower in reaction to the news that new regulations will be introduced to tighten rules to purchase houses for investment purposes.[39]

Local stocks sank more than 3 percent yesterday as investors used weak overseas markets and a sharp fall on mainland bourses as an excuse to lock in recent gains.[32] The number of retail stock investor accounts has grown exponentially in recent years (Chart 5), numbering 130 millions in 2007 or 22% of total urban population.[47]

Major U.S. indices gained half a percentage point on Tuesday in a day dominated by upbeat earnings. Record oil and gas prices didn't concern investors too much as the market marched to its first positive session in three days.[35] "Investment sentiment remains fragile while most investors are cautious as volatility in the U.S. and China markets is likely to remain," said Linus Yip, a strategist at First Shanghai Securities.[29]

China's export growth slowed in the first quarter and the trade surplus narrowed for the first time in more than three years as U.S. demand waned.[25] "Overall, the inflation problem is due to supply shortages.'' Snowstorms crimped first-quarter growth by disrupting the production of companies such as Zhuzhou Smelter Group Co. and Chenzhou Mining Group Co. A weakening appetite for exports may further cool China's expansion.[25] 'China is going to stay on a pretty good growth path and inflation probably eased a little bit in March,' said Howard Gorges, vice chairman at South China Securities.[19]

Preliminary reports in the Chinese state media point towards an annual inflation rate of 8.3 percent in March, marginally lower than in February but still close to a 12-year high.[2] The underperformance of the Chinese market was attributed partly to comments from the People's Bank of China Chief that the central bank will continue to tighten monetary policy to rein in inflation.[39] The mood darkened when central bank chief Zhou Xiaochuan said there was still room for Beijing to raise interest rates to stamp out inflation.[6]

"There's room for using interest rates further," Zhou Xiaochuan, governor of the People's Bank of China, told Bloomberg News over the weekend.[9] China has raised interest rates regularly, imposed taxes on capital gains and land appreciation, stopped non-residents from buying apartments, told banks to curb loans to developers and employed a "use it or lose it" policy on land to deter speculation.[1]

Shares of Commonwealth Bank fell by 2.3 percent to 40.49 Australian dollars and Toll Holdings plunged sharply by 15 percent to 8.05 Australian dollars in Sydney. [42] Shares of financial firms like Mitsubishi UFJ declined by as much as 3.7 percent, followed by Sumitomo Mitsui Financial Group losing by 4.2 percent in Tokyo.[42] In Japan, high-tech shares were dragged down by a Nikkei report that said Canon Inc.' s net profit for the January-March quarter is likely to fall 16 percent due to a rising yen.[14] Shares of Hyundai Steel lost 4.7% and Posco (PKX) sank 6.5% in Seoul, while in Shanghai trading, shares of Baoshan Iron & Steel Co. tumbled 5.9% and Nanjing Iron & Steel Co. slumped 8.5%. In a note to clients, Goldman Sachs noted that Posco recently increased its 2008 sales forecast 17%, but didn't raise its profit guidance.[4] Shares of Toll Holdings, which is the largest shareholder in Virgin Blue, tumbled 15.1%. ABN Amro downgraded Toll to hold from a buy earlier Monday, "reflecting the perceived overhang of Toll retaining its 62.8% share of Virgin Blue and the flow-through financial impact of Virgin Blue's 35% FY08 profit downgrade."[4] The drop in Canon's shares came on the heels of a Nikkei business daily report over the weekend that Canon's January-March quarter net profit likely declined 16% from a year ago, hurt by a stronger yen. In Sydney, shares of Virgin Blue Holdings plummeted 21.6% after the company warned Friday that its annual net profit could drop sharply.[4]

Tesco, which was among the top blue-chip gainers, reported a record 7.3 billion pound annual profit and said it had made a strong start to the new financial year.[35]

In December last year, the regulator was ordered to suspend the launch of index futures as Premier Wen Jiabao was worried that the debut of financial derivatives would destabilise the market. The CSRC had announced that futures contracts would start trading last year but they have yet to appear.[7] Market close to long-term trend Economic and statistical indicators suggest that the Shanghai A-share index is trading close to its long-term trend line. A further drop in the index will bring it below its long-term trend. There is a strong economic rationale for this mean reversion tendency.[47] Singapore's Straits Times Index fell 2.5% to 3,047.28 in the afternoon trading.[4] In afternoon trading, India's Sensitive Index, or Sensex, rose 2.4% to 16, 191.04 and the broader S&P;/CNX Nifty gained 2.4% to 4,894.15, while Singapore's Straits Times Index added 0.5% to 3,058.54.[46]

The Shenzhen Composite Index sank 6.3 percent to 1,009.16. Other regional markets also dropped following a 2.0 percent decline in the Dow Jones industrial average last Friday. [13] The Shanghai benchmark index, which sank to a fresh 12-month low in the morning, rebounded to close up 1.6 percent.[26] Elsewhere in Asia on Monday, Australia's market fell 1.8 percent and South Korea's key index sank 1.9 percent.[14] Elsewhere, Australia's S&P;/ASX 200 index lost 1.8% to 5,342.40, South Korea's Kospi shed 1.9% to 1,746.71, New Zealand's NZX 50 index slipped 0.5% to 3,470.96 and Taiwan's Weighted index fell 0.2% to 8,892.68.[4]

On Wall Street, the Dow Jones Industrial Average (DJI) ended 23 points down at 12,302, the S&P; 500 index (SPX) shed 4.51 points to 1,328, while the Nasdaq Composite (RIXF) fell 14.42 points to 2,275.[46] BANGKOK, Thailand -- Asian markets fell Monday after Wall Street tumbled late last week on concerns over a slowdown in the U.S. economy and the outlook for corporate profits.[12] LONDON (AP) — Stock markets across Europe and Asia fell Monday amid concerns about a slowdown in the U.S. economy and the outlook for corporate profits.[14]

Additional pressure on stocks came from renewed and rising concerns over the state of the U.S. economy as the Group of Seven finance ministers expressed fears over weakening global economic prospects in the financial sector.[42]

U.S. stocks crept higher on Monday with energy shares buoyed by record oil prices and moods lifted by better-t.[13] 'Losses on the Shanghai market are curbing the enthusiasm for local shares even as most stocks are now oversold,' said Peter Lai, investment manager at DBS Vickers.[33]

Shanghai shares were affected by rumours that Beijing will announce new restrictions to curb speculative property investment.[33]

An investor at Asia's third-biggest container terminal operator is selling 56.69 million shares at HK$13.08 to HK$13.20 per share.[19] Shares also came under pressure when investors used Wall Street's decline on Friday as an excuse to pocket gains from the market's two-day rally.[48] Investors may also be encouraged to buy shares after the Dow Jones Industrial Average rebounded overnight on higher-than-expected manufacturing data.[19]

After a strong performance last week, investors were unloading positions in Chinese financials.[36]

The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10, tracks the performance of nine major banks and insurers of the Chinese mainland.[11] The index tracks the performance of 31 locally listed companies with a significant equity interest held by entities in the Chinese mainland.[11]

A: Globally we like commodities, but within China we don't particularly see the commodity plays because internationally there are also good buys in commodities like gold, and there it doesn't depend on the currency because commodities is just like another currency. For Mainland China, we just stay cautious on exporters to Europe and U.S. because we think those economies will go into a depression quite likely and looking for safer income stream companies like utilities and other areas like that.[24] China Netcom, the smaller of the mainland's two fixed-line phone networks, lost 4.6 percent at HK$21.75.[2] China Life Insurance, the biggest insurer on the mainland, slid 5.8 percent to HK$28.60 and rival Ping An Insurance plunged 5.1 percent to HK$62.[2]

China Life Insurance, the nation's biggest insurer, was up 1.6 percent at HK$29.05, while smaller rival PICC Personal & Casualty advanced 1.04 percent to HK$7.78.[23] China Life Insurance, the nation's largest insurer, lost 0.4 percent at HK$28.60.[19] China's biggest offshore oil producer, CNOOC, slid 4.8 percent to HK$12.20.[2] Air China, the nation's biggest international airline, jumped 2.3 percent to HK$5.88.[23] Oil refiner China Petroleum & Chemical Corp. (Sinopec) jumped 2.9 percent to HK$7.07.[19]

China Life edged up 0.35 percent, while Ping An and PICC P$C fell 1.69 percent and 0.78 percent.[29] Bank of China BACHF fell 3.8% to 4.86 yuan, and Industrial & Commercial Bank of China IDCBF slid 5.2% to 5.81 yuan.[36]

PetroChina closed 5.4 percent lower at HK$9.80. It also fell sharply in Shanghai. [2] PetroChina (nyse: PTR - news - people ) gained 0.7 percent to close at HK$9.87 while Sinopec finished 1.3 percent higher at HK$6.87.[21]

Gross domestic product rose 10.4 percent in the first quarter from a year earlier, according to the median estimate of 24 economists surveyed by Bloomberg News, after expanding 11.2 percent in the previous three months.[25] The economy grew 11.9 percent in 2007, the fastest pace in 13 years, while inflation was at 8.7 percent in February, the highest in nearly 12 years.[19] Soaring food prices pushed inflation concerns to the forefront as the World Bank warned of an impending humanitarian crisis that could undo years of poverty-reduction efforts.[45] World food prices rose 57 percent last month from a year earlier, according to the United Nations.[25]

Property prices have more than tripled and rentals are up 20 percent, providing a yield of about five percent.[30]

The Dow Jones Industrial Average dipped 0.2 percent on Monday, far less than 2 percent drop posted on Friday when General Electric shocked Wall Street with a 6 percent decline in first-quarter profit.[23] VANCOUVER, British Columbia (Reuters) - A stake in troubled bank National City Corp could be a shrewd and cheap way to give Bank of Nova Scotia its first foothold in U.S. retail banking, analysts said on Friday. The Wall Street Journal reported late on Thursday that Canada's second biggest bank has jumped into the bidding for National City, which is under regulatory pressure to bolster its capital, or find a buyer, before reporting quarterly results this month.[45] The market's overall rise was tempered by losses on Wall Street overnight and concerns over weak U.S. corporate earnings in the first quarter.[21]

That could just be the tip of the iceberg, with the United States set to release a series of corporate earnings this week as well as the latest monthly measurements of inflation, consumer confidence and housing data.[6] Concern over potential measures by Beijing to curb inflation after the release of mainland consumer price and first-quarter Gross Domestic Product data on Wednesday weighed on the market.[27]

China will report first quarter gross domestic product data Wednesday, and will also issue other economic indicators.[14]

China's foreign-exchange reserves, the world's largest, surged to $1.68 trillion at the end of March.[25] Swedish clothing retailer H&M; gained 1.6 per cent despite reporting an 8 per cent fall in turnover in established stores in March.[35] The core PPI, which excludes volatile food and energy prices, rose 0.2 per cent last month, in line with economists' expectations.[35] The Nikkei 225 added 73.07, or 0.57 per cent to 12990.58. Advantest Corp, the world's largest maker of microchip testers, climbed 2.8 per cent after Nomura raised its investment stance on the chip-making equipment industry to bullish from neutral. Tokyo Electron advanced 3.5 per cent after Nomura raised its rating to buy from neutral, citing signs of a recovery in the chip-making equipment industry as memory chip prices have started rising.[35]

The Dow closed 60.41 points, or 0.49 per cent higher at 12362.47, while the broader S&P; 500 gained 6.11, or 0.46 per cent to 1334.43.[35] CLP gained 2.3 per cent while Hongkong Electric climbed 1.1 per cent to HK$49.55.[8] Among the miners, Rio Tinto picked up 3.2 per cent in UK trade, while BHP Billiton added 3.8 per cent.[35] The two lenders are still up on the month though, tallying 6.83 per cent and 8.78 per cent gains.[6] Steel maker JFE Holdings rose 6.1 per cent, while Toyota Motor Corp. gained 1 per cent and Honda Motor Co. rose 1.1 per cent.[8] Elsewhere, Swiss drug maker Roche was down 3.5 per cent after big-selling drug Rituxan failed to show it was an effective treatment for a type of multiple sclerosis.[35] Exxon Mobil rose 1.2 per cent, ConocoPhillips added 1.8 per cent and Chevron was up 1 per cent.[35]

Cheung Kong Infrastructure, which owns 39 percent of Hongkong Electric, rose 4. 5 percent to 32.60 HK dollars. [29] The Dow Jones industrial average fell two percent Friday and begins the week at 12,315.[15] Hang Lung Properties, one of the city's top developers, rose 1.9 percent to HK$30.35.[23] Since 2005, Li has also been investing in stocks. His equity assets total about HK$30 million a small portion of his family foundation. Their are high, but profits are huge too.[30] Weak dollar, supply disruptions boos oil, while stocks mixed ahead of key earnings reports.[13] Mainland property stocks took a beating on fears that tighter credit will impact demand for real estate.[2] Despite crude oil prices at record highs, bargain buyers bought some airline stocks in the region, after a string of declines in recent weeks.[46]

LONDON (Thomson Financial) - Part of the estimated 600 million euro for the construction of JadeWeserPort, the deep water container port in the German town of Wilhelmshaven, is scheduled to be raised in the capital markets in 2009, according to Helmut Werner, managing director of the JadeWeserPort Realisierungs GmbH & Co. KG, the project manager controlled by the state of Lower Saxony and the city of Bremen. LONDON (Thomson Financial) - UBS has downgraded its recommendations on European insurers Swiss Reinsurance and Assicurazioni Generali Spa. to'sell' from 'neutral', whilst reducing its stance on Helvetia Holding Ag. to 'neutral' from 'buy', with no changes to the target prices, following their recent strong share performance, traders said.[28] European shares rallied for the first time in over a week despite a slump among the continent's auto producers.[35]

As one of the Big Four state-owned commercial banks, ICBC picks up pace in overseas acquisitions, however, it remains cautious about buying U.S. assets. The U.S. government has introduced a series of measures such as Fed rate cut to support the nation's economy but great risk still exists, Jiang said. About half a year ago, several U.S. financial institutions contacted ICBC for possible investments, but being rejected, Jiang said without naming those firms. [38] Among commodity traders, Mitsubishi Corp. gained 2.3% and Marubeni Corp. added 3%. Financials also posted strong gains, recovering some of their steep losses recently, with Macquarie Group jumping 5.4% and Commonwealth Bank of Australia gaining 2.7%.[46]

Markets were nudged above the gain line on positive economic news from the U.S. and a surge in BG Group partner, Repsol.[35] The change in plans follows a determined drive last year by regulators to push through with the return of red chips on the Shanghai bourse in a bid to bring the country's most profitable companies back home and inject new vigour into the domestic market.[7] The measures hit housing market transactions in some cities at the end of last year, including Guangzhou, Shanghai and Shenzhen. With many developers struggling to recycle money from apartment sales to finance new projects, analysts believe firms that fail to raise funds to build on their land will be snapped up by stronger rivals.[1]

The blue-chip Hang Seng Index.HSI may head for the 23,000 level if the index fails to hold above a floor of 23,400, Kwong added. [3] "The government faces two contradictory choices: economic growth or cooling inflation," said Zhang Xiuqi, an analyst at Guotai Junan Securities. "Its clear that further monetary tightening will come, maybe even more strict measures, and investors think that will be at the sacrifice of growth," he added.[13] Property developers were sold on concerns the Chinese government could raise interest rates in the near term to control inflation.[8]

'Investors expect further policy tightening on the mainland. Some are adopting a wait-and-see stance at this point,' he said. [33]

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2. Hong Kong shares close sharply lower on Wall Street, Shanghai falls - UPDATE - Forbes.com
3. HK shares deflate, banks head south on China fears | Markets | Asia | Reuters
4. Asian Stocks Slump; Banks, Steelmakers Hit (Breaking News) at SmartMoney.com
5. SCMP.com - the online edition of South China Morning Post, Hong Kong's premier English-language newspaper
6. SCMP.com - the online edition of South China Morning Post, Hong Kong's premier English-language newspaper
7. SCMP.com - the online edition of South China Morning Post, Hong Kong's premier English-language newspaper
8. The Canadian Press: Asian stocks rebound modestly on bargain-hunting; Nikkei rises 0.6 per cent
9. Global warning sees shares in Hong Kong taking a dive -- Shanghai Daily | '''''''''''' -- English Window to China News
10. Untitled
11. China Enterprises Index up 0.01 pct _English_Xinhua
12. Asian Markets Fall; Nikkei Down 3.1 Pct | Chron.com - Houston Chronicle
13. Chinas Shanghai index falls 5.6 percent on worries over credit tightening, earnings - International Herald Tribune
14. The Associated Press: Asian, European Markets Fall
15. WTTE FOX 28 - International News
16. Untitled
17. HK stocks plunge 3.47% on regional markets' fall_English_Xinhua
18. HK shares deflate, banks slide on China fears | Markets | Asia | Reuters
19. Hong Kong shares higher on optimism about China's GDP, inflation - UPDATE - Forbes.com
20. Hong Kong shares turn higher in afternoon trade after Chinese stocks recover
21. Hong Kong shares close higher on rebound in mainland markets - Forbes.com
22. Business finance news - currency market news - online UK currency markets - financial news - Interactive Investor
23. Hong Kong shares higher in early trade on bargain-hunting - UPDATE - Forbes.com
24. Moneycontrol India :: News :: Interest rate hike in China may boost Renminbi: Tyche Grp :: :: FII View :: Martin Hennecke,Tyche Group,Nikkei,Hang Seng,Taiwan Weighted,Straits Times,Seoul Composite,Renminbi,gold
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31. Asian economic and business calendar -- to April 29 | Latest News | News | Hemscott
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34. Hong Kong shares end morning sharply lower on China worries, Wall Street's fall - Forbes.com
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37. Untitled
38. Untitled
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42. Asian Markets Close Lower Amid Rising Fears Of Worsening U.S. Economy | April 16, 2008 | AHN
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44. Media-Newswire.com - Press Release Distribution - PR Agency
45. reportonbusiness.com: globeinvestor.com - Reuters Canada Business Summary
46. ASIA MARKETS: Tokyo, Shanghai Shake Off Early Losses
47. A-share correction: How much more to go? - General - FinanceAsia.com - The network for financial decision makers
48. Hong Kong shares end morning sharply lower on China worries, Wall Streets fall

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