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Nov-05-2009China Eastern gets stock-sale OK, shares jump(topic overview)
CONTENTS:
- HONG KONG, Nov 5 (Reuters) - Shares of Chinese property firm Evergrande Real Estate Group Limited ( 3333.HK ) were indicated 14.3 percent higher ahead of their $729 million Hong Kong trading debut on Thursday. (More...)
- Reuters calculations based on the closing price of Tingyi's Hong Kong-listed stock valued the share issue at HK$3.4 billion ($438 million). (More...)
- Master Kong Holdings, a subsidiary of Ting Hsin International Group, the largest Taiwanese-funded company in China, is expected to offer 380 million TDRs in Taiwan at an estimated NT$40 (US$1.23) per TDR. (More...)
- News of the company's possible listing comes at a time when rising prices have sparked fears that an asset bubble could be forming in the city's property market. (More...)
- Bank of China ( 3988.HK ), China Construction Bank ( 0939.HK ), Industrial & Commercial Bank of China ( 1398.HK ) and Agricultural Bank of China extended new loans of about $19.9 billion in October, up 23 percent from the previous month, the official China Securities Journal reported on Tuesday. (More...)
- The S&P 500 advanced 0.7 per cent yesterday as the Institute for Supply Management's factory index rose to a three-year high. (More...)
- The report says the surprise growth is better news for Asia's poor. (More...)
- By comparison, Agile Property ( 3383.HK ) trades at 12 times 2010 earnings, while China Overseas Land ( 0688.HK ) trades at 16 times. (More...)
- "Price pressures should remain muted and, given our current outlook for global commodity prices, consumer price inflation should end 2010 close to zero," said the report released on the website of the International Monetary Fund. (More...)
- Stocks on that MSCI gauge trade at an average 22 times estimated profit, the lowest level since May 14, according to Bloomberg data. (More...)
- To view or change all of your email settings, visit the Email Setup Center ]] Email Setup Center. (More...)
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HONG KONG, Nov 5 (Reuters) - Shares of Chinese property firm Evergrande Real Estate Group Limited ( 3333.HK ) were indicated 14.3 percent higher ahead of their $729 million Hong Kong trading debut on Thursday. The Guangzhou-based property developer saw its opening share price set at HK$4.0, compared with a Hong Kong IPO price of HK$3.50 each, which had been at the mid-point of an indicated range. BofA-Merrill Lynch and Goldman Sachs ( GS.N ) are joint sponsors of the deal, and they together with Credit Suisse ( CSGN.VX ) and BOC International are joint global coordinators and joint bookrunners. Several recent mainland property IPOs have met with cool response as the broader market comes off its highs and investors weigh a flood of similar offerings. [1] Several recent mainland property IPOs have met with cool receptions as the broader market comes off highs and investors weigh a flood of similar offerings. Shenzhen-based Excellence Real Estate Group Ltd last week shelved plans for an IPO in Hong Kong of up to $1 billion, blaming market conditions, while Mingfa Group also scaled down its fundraising plans. Evergrande attracted strong demand because of its low valuations. It drew orders for about 10 times the number of shares earmarked for institutional investors, while the Hong Kong retail tranche generated orders for about 46 times the shares initially on offer. Based on Evergrande's offering price, which represents a price-to-earning multiple of 5.8 times estimated 2010 earnings by its IPO underwriters.[2]
Shares of Evergrande Real Estate rose as much as 20 per cent on its debut in Hong Kong on Thursday, shrugging off the cool investor response to a flood of recent Chinese property offerings. Guangzhou-based Evergrande traded at HK$4.00 at GMT 3:04, against its initial public offering price of HK$3.50.[3]
The government has responded to local concerns by capping loans on properties valued at more than $3m at 60 per cent, and for cheaper flats, the loan is capped at $1.7m. Those who are acquiring most of the top-priced properties are mostly mainlanders paying cash. They do not need Hong Kong mortgages. Given the state of the British economy, it's hardly surprising that the chief executive of the Hong Kong & Shanghai Banking Corp is shifting back from London to the bank's historic HQ, Hong Kong. Hong Kong Resources Holdings, with 219 jewellery stores in China, is a classic success story - its share price has risen 500 per cent in the past year - that points to the dimensions and results of the Chinese credit boom.[4] Hong Kong's own monetary base has doubled in recent months to more than $115 billion, lifting the sharemarket by 100 per cent and property prices by almost 30 per cent. "Luxury flats are being snapped up," says Holland, "largely by mainland (Chinese) buyers eager to get their money offshore." The middle-class folk who dominate Hong Kong's 7.1 million population are feeling frozen out of this action, getting worried that they will be priced out of their own city.[4]
The IPO was priced at HK$1.65 per share. Recent debutants such as Chinese developer Yuzhou Property ( 1628.HK ) fell on their first trading days. Tingyi Group ( 0322.HK ), the company behind noodle brand Master Kong, said on Monday that it plans to raise about $440 million in a share offering in December, Taiwan's largest IPO from a company returning to its home base. Each of the 380 million Taiwan Depository Receipts (TDR) issued will be worth half of the price of its Hong Kong-listed shares, although a final price had yet to be set, Tingyi said in a filing with the Taiwan Stock Exchange.[5] TAIPEI, Nov 2 (Reuters) - Tingyi Group, the company behind instant noodle brand Master Kong, plans to issue 380 million TDR units in a secondary listing in its home base Taiwan in December, sources said on Monday. Each Taiwan Depository Receipt issued will be worth half its stock listed in Hong Kong, with no final price set yet, one of the sources, who has direct knowledge of the information, said. Many Taiwan firms had previously chosen to list in Hong Kong or Singapore in the past due to previous restrictions that kept them from listing back home if a large portion of their assets are based in China.[6] Tingyi made the announcement after the Hong Kong stock exchange closed on Monday. Its shares were up 2.87 percent, beating a 0.61 percent decline on the benchmark Hang Seng index.HSI. Other companies that have returned to Taiwan for secondary listings include food and beverage company Want Want ( 0151.HK ) ( 9151.TW ) and PC parts maker Ju Teng ( 3336.HK )( 9136.TW ). Many Taiwan companies had previously chosen to list in Hong Kong or Singapore because of previous restrictions that kept them from listing at home if a large portion of their assets were based in China.[7]
U.S. stocks rose on Monday, spurred by stronger-than-forecast data on manufacturing and pending home sales, but a Federal Reserve official's warning about banks' loan losses capped gains. HSBC Holdings ( 0005.HK ) ( HSBA.L ), Europe's biggest bank, is preparing to boost its China presence about 20 percent next year, as it ramps up for an IPO in one of its fastest growing markets, a top company executive said. HSBC is aiming to open 15-20 new branches in China next year pending regulatory approval, up from the 90-100 it will have at the end of this year, Sandy Flockhart, chief executive of Hong Kong and Shanghai Banking Corp, said in Taipei on Monday.[5] HONG KONG, Nov. 2 (Xinhua) -- The retail sales of Hong Kong in September grew by 2.4 percent year on year to 21.4 billion HK dollars (2.7 billion U.S. dollars), the Census and Statistics Department of the Hong Kong Special Administrative Region (HKSAR) government said Monday.[8] HONG KONG, Nov 3 (Reuters) - The International Monetary Fund said on Tuesday it shares the Hong Kong government's concern that the city could face sharp asset price inflation, as data showed home sale and purchase agreements nearly doubled in October.[9] "We share the authorities' concerns that a credit-asset price cycle could take hold, leading to a sharp run-up in prices for certain real and financial assets," the International Monetary Fund said in an annual report on Hong Kong. "While such asset price movements are part of the natural equilibrating mechanism of the Hong Kong economy, there is a risk that prices could become driven more by short-term liquidity conditions, divorced from fundamental forces of supply and demand."[9]
When the International Monetary Fund finally takes notice, it must be old news. On Tuesday the IMF issued its annual report on Hong Kong, saying that it shared the government'''s '''concerns that a credit-asset price cycle could take hold, leading to a sharp run-up in prices for certain real and financial assets'''.[10] HONG KONG — The International Monetary Fund said Tuesday that Hong Kong faced a potential surge in property prices and endorsed a government plan to cool any overheating in the market. The Washington-based organisation's warning came as prices in the southern Chinese city soared with luxury developments up more than 40 percent since January this year.[11] "We welcome the consideration that is now being given to increasing the supply of land to the market as one of the possible means to help moderate potential property price surges," the IMF said in a report on the city's economic health. The IMF raised its growth forecast for Hong Kong, saying the region's economy would likely contract two percent this year -- down from its earlier 3.5 percent forecast -- with five percent growth in 2010.[11] Government data on Tuesday showed that sale and purchase agreements, with stamp duty paid, for residential property units in the city soared 97 percent from a year earlier to 9,300. They fell 24 percent from September, indicating the announcement of tighter mortgage lending rules may have dampened sentiment. The Washington-based IMF also said it had raised its GDP forecasts for Hong Kong following a recent improvement in the economy. It forecast a 2 percent decline in GDP this year, against a 3.5 percent decline previously, and 5 percent GDP growth in 2010, up from 3.5 percent previously.[9]
HONG KONG, Nov. 3 (Xinhua) -- The International Monetary Fund (IMF) on Tuesday released its latest growth forecasts for Hong Kong economy, projecting a contraction of 2 percent in 2009, followed by a growth of 5 percent in 2010.[12]
HONG KONG, Nov 3 (Reuters) - Hong Kong stocks are set to open 0.1 percent lower on Tuesday, as local property companies extended losses, while Swire Pacific ( 0019.HK ) rose after disclosing plans for a separate listing of its property subsidiary.[13] HONG KONG, Nov 3 (Reuters) - Shares of Swire Pacific ( 0019.HK ) rose 6.3 percent to a 20-month high on Tuesday after the conglomerate said it was considering spinning off its property unit on the mainboard.[14]
HONG KONG (Dow Jones)--Hong Kong shares ended lower for a second consecutive day Tuesday as investors took profit in Chinese banks, but Swire Pacific defied the trend and gained 1.1% on the proposed spin-off of its property unit. Analysts said they expect the benchmark index to consolidate between 20,800 and 22,000 points in the near term, with a downside bias.[15]
Robert Olsen, 11.03.09, 06:30 AM EST Hoping to get in before it's too late, Swire Pacific said it may list its property unit on the city's stock exchange. HONG KONG -- In the latest sign of bullish sentiments about Hong Kong's real estate market, Swire Pacific said on Tuesday that it was looking to spin off its property division.[16] The British conglomerate said it was considering a separate listing of Swire Properties Ltd. on the main board of the Hong Kong stock exchange. Swire did not provide a possible time frame or any financial details for the listing of its real estate unit, but analysts estimate it could come in the first half of next year.[16]
HONG KONG, Nov 5 (Reuters) - Hong Kong stocks are set to open 0.97 percent lower on Thursday, tracking losses in other Asian markets, but debutant Chinese property developer Ever Grande Real Estate ( 3333.HK ) rose.[17] HONG KONG, Nov 3 (Reuters) - Hong Kong stocks are seen higher on Tuesday after Wall Street rose on Monday, while banks will be in focus after a newspaper report said China's top four state-owned lenders extended more credit in October.[5]
HONG KONG, Nov 4 (Reuters) - Hong Kong stocks are set to open up 0.74 percent on Wednesday on bargain hunting after a two-session decline, while Asia Resources Holdings (0899.HK: Quote, Profile, Research ) soared after it said it would acquire a stake in an Indonesian company.[18] HONG KONG, Nov. 2 (Xinhua) -- Hong Kong stocks narrowed their sharp opening losses on Monday to close at 21,620.19, down 132.68 points, or 0.61 percent.[19]
HONG KONG, Nov. 3 (Xinhua) -- The number of sale and purchase agreements for all building units in Hong Kong in October was 11,112, up 83.5 percent year on year but down 23 percent from the previous month, the city's Land Registry said Tuesday.[20] The impact of the new requirement will likely be limited, Paul Schulte, an analyst for Nomura recently wrote, since luxury buyers are less dependent on credit for home purchases. Mr. Schulte believes new land sales are necessary, and that without them Hong Kong's large pool of deposits, low interest rates and deep well of mainland Chinese buyers will continue to exert upward pressure on prices.[21]
Consumer confidence has been boosted as job losses have slowed in recent months and the unemployment rate fell in July'September, to 5.3%, for the first time in nearly two years. A sharp rise in Hong Kong stock and property prices this year had also created a wealth effect, analysts said.[22] Master Kong Holdings is expected to raise more than NT$14 billion (US$430.77 million) through the offering, said the deal's underwriter SinoPac Holdings. Both the funds raised via the TDRs and the offer price should set new highs in the history of Taiwan's stock market, according to SinoPac Holdings. If everything goes smoothly, the official listing of the Master Kong TDRs could occur by the end of this year at the earliest. Master Kong brand instant noodles have a dominant 54 percent share of China's instant noodle market, while its tea beverage line has a 50 percent share and bottled water has a 21 percent share.[23] Master Kong Holdings made Forbes Asia's Fabulous 50 Companies list in 2009, with a total market value of 100 billion Hong Kong dollars. Master Kong Holdings will be the 10th overseas business to apply to the TWSE to list TDRs in Taiwan since the start of this year. Four of those applicants have already been listed.[23]
The World Bank warned Tuesday that the sudden reappearance of billions of dollars in investment capital in East Asia is "raising concerns about asset price bubbles" in equity markets across Asia and in real estate in China, Hong Kong, Singapore and Vietnam.[24] The bank said concerns about asset price bubbles were being reinforced by a rapid increase in equity and house prices across the region, notably in China, Hong Kong and Singapore.[25] The profits, the cash generated offshore and brought back, are recirculated through the banks - to which private businesses and individuals without official guanxi or networks have only limited access. No wonder China and Hong Kong, its centre for recycling capital, are forever blowing bubbles. The dreams of the elites there never truly fade and die, however, because they are unlikely to be called to account for failed investments. The South China Morning Post business commentator Tom Holland described how this year "liquidity has cascaded into developing economies' asset markets in massive quantities".[4]
The measures come after 30,000 Hong Kong small investors who bought $1.8 billion in Lehman-linked derivatives were left in limbo after the U.S. investment bank collapsed September last year. Upset they weren't fully aware of the risk their investments carried -- many of the complex derivatives were innocuously labeled "mini-bonds" -- investors took to the streets.[26] Hong Kong regulators announced a settlement with 16 local banks in July that returned up to 70 percent of principal to the buyers, or up to $6.3 billion Hong Kong dollars ($813 million).[26] The property division is one of Swire's most profitable units, contributing 1.85 billion Hong Kong dollars ($237 million) to the company's bottom line during the first half of 2009.[16] Revenue from the same division accounted for 3.84 billion ($492 million) Hong Kong dollars, or 32%, of the conglomerate's total revenue.[16]
The total price of the 6,158-square-foot condominium located in Hong Kong's up-market Mid-Levels district was 439 million Hong Kong dollars ($56.3 million).[16]
A condominium from billionaire Lee Shau Kee's Henderson Land Development recently set a new record when it sold for 71,280 Hong Kong dollars ($9,138) a square foot.[16] The release of the IMF report came just three weeks after Henderson Land, a large Hong Kong developer, announced it had sold a penthouse on the 68th floor of a 40-storey building for HK$71,280 ($9,200) per square foot ''' a marketing gimmick made possible by omitting dozens of floor numbers.[10] Last month, a luxury flat sold for a world record HK$71,280 ($9,200) per square foot. That prompted the central bank, the Hong Kong Monetary Authority, to raise the downpayment to buy luxury property and cap mortgage loans for mass-market property.[9] Bank of America Merrill Lynch in a research note on Tuesday upgraded Swire to "buy" from "underperform," saying the spinoff could unlock the value of Swire's non-property businesses including beverage and oil services. "We think Swire may be renewing its focus on property development in Hong Kong," the brokerage said, adding Swire may need to raise new funds for landbank acquisition. It raised Swire's price target to HK$110 from HK$75.[14] The Guangzhou-based property developer's opening share price was HK$4, compared with a Hong Kong IPO price of HK$3.50 each, which had been at the mid-point of the indicative range.[2] The Hong Kong Monetary Authority last month raised down-payment requirements for luxury homes for the first time since 1991. "People seem to have recognised that their dream about continually rising property shares has burst," said Castor Pang, a research director at CINDA International Holdings, a Hong Kong brokerage.[27]
HONG KONG -- The International Monetary Fund expressed concern about spiraling asset prices in Hong Kong, adding a prominent voice to a heated local debate about whether the government should be doing more to prevent a housing bubble.[21] Tuesday, the International Monetary Fund cited "a risk" that surging Hong Kong asset prices are being driven by a flood of capital "divorced from fundamental forces.[24]
HONG KONG (Dow Jones)--The International Monetary Fund said Tuesday it revised Hong Kong's 2009 and 2010 economic forecasts on increased optimism, but warned the city remains vulnerable to external shocks because it is an open economy.[28]
HONG KONG (Dow Jones)--The Hong Kong dollar strengthened against the U.S. dollar Wednesday as a rebound in local stocks attracted capital inflows. Traders said they expect the Hong Kong dollar to remain strong as upcoming initial public offerings will also continue to attract inflows. They said the U.S. dollar will likely trade between HK$7.7500 and.[29] HONG KONG (Dow Jones)--The Hong Kong dollar was slightly lower against the U.S. dollar Tuesday as a decline in local shares trimmed capital inflows.[30]
The territory's currency peg to the U.S. dollar is helping boost fund inflows as a weak dollar makes Hong Kong assets attractive while the peg forces Hong Kong to track moves in U.S. interest rates, which are expected to stay low for some time.[9] The organisation also backed the city's currency peg to the U.S. dollar as an "anchor of monetary and financial stability." The HKMA has injected billions of dollars into the foreign exchange market in recent months to keep the Hong Kong dollar within its required trading range against a weakening U.S. dollar.[11] "The Hong Kong market will rebound today, benefitting from the rise in U.S. markets and the drop in the U.S. dollar," said Conita Hung, research head at Delta Asia Financial Group.[5]
Zijin Mining Group Co., China's No. 1 gold producer, rose 1.6 per cent in Hong Kong after the precious metal climbed to a one-week high.[27] The MSCI Asia Pacific excluding Japan Index lost 1.1 per cent to 384.74 as of 3:54 p.m. in Hong Kong, with almost two stocks declining for each that rose.[27] Hong Kong's Hang Seng Index fell 1.7 per cent, South Korea's Kospi Index lost 0.6 per cent and India's Sensitive Index declined 0.4 per cent.[27]
Sino Land Co. dropped 4.4 per cent in Hong Kong on concern the government will enact measures to curb property speculation. India's Suzlon Energy and Reliance Communications slumped more than 5 per cent after their quarterly results missed analyst estimates.[27] Sun Hung Kai Properties, Hong Kong's No. 1 property developer by market value, declined 3.1 per cent to HK$114.10.[27]
Hong Kong's is wider; the richest 10 per cent earn about a third of the city's total income. This is a core reason for the sense of anxiety that continues to pervade China's ruling party even after just celebrating 60 years in unchallenged power.[4] HONG KONG - HONG KONG said on Monday that September retail sales rose 2.4 per cent year-on-year - the first increase after seven months of declines - due to an improving economy buoyed by stronger tourism figures.[31] HONG KONG: September retail sales in Hong Kong rose for the first time since January, by 2.4% from a year earlier, government data showed yesterday. It is a further sign that the economy, which pulled out of recession in the second quarter, is on a firm recovery footing.[22]
Hardly anyone's thinking about repaying the billions of bucks involved. Most of it has swiftly found its way into property and shares. Within China, house sales have surged 70 per cent this year. This raises interesting questions about the fulsome praise that has been lavished on the Chinese stimulus package, in Australia as elsewhere. Some of the spending has doubtless found its way to useful projects where investment will be returned, in a socially and economically beneficial way, for some time to come. It's more difficult to see what's gained from printing heaps more money and telling the government's banks to shovel it out to mates.[4] The rest expect a half-point increase. Australia on October 6 became the first Group of 20 nation to raise interest rates amid signs of strength in its economy, while the Bank of Japan said last week it will let its programs of buying corporate debt expire at the end of the year. Investor concern about the withdrawal of stimulus policies and lower-than-estimated profits at companies from PetroChina to National Australia Bank have dragged the MSCI Asia Pacific Index, which includes Japan, down by 5.2 per cent from this year's high on October 20.[27] Futures on the U.S. Standard & Poor's 500 Index lost 0.3 per cent, reversing earlier gains, as UBS, Switzerland's largest bank, reported a fourth consecutive quarterly loss and Lloyds Banking Group announced a $34 billion rights offer.[27]
"Further improvements in the economic and corporate news will help justify valuations," said Jason Teh, who helps manage $3.2 billion at Investors Mutual in Sydney. "A lot of stocks have had a good run, making it harder to find value in this market." Suzlon, the country's biggest maker of wind-turbine generators, tumbled 8.3 per cent to Rs 61.3 as its loss in the three months ended September 30, including that of units, widened on slowing equipment orders.[27]
HONG KONG: Asian markets ended a two-day run of losses as commodity-related stocks rallied on a gold price surge, while investors eyed monetary policy meetings in the United States and Europe this week.[32] We want to make sure that complicated products are only sold to investors who truly understand them," Chan said. Thousands of investors who bought other financial products not covered by the July settlement have complained they are being ignored. A Hong Kong Monetary Authority official said Monday regulators are about to take action on about 600 such cases.[26] Hong Kong officials said Monday they have tightened regulation of complicated investment products after thousands of local retail investors were burned by Lehman Brothers-backed derivatives last year.[26]
The insurer said in July it would relaunch a Hong Kong IPO after trying to raise more than $4 billion from the Hong Kong market last year, but did not provide a detailed timeframe for the listing. It said funds from the offering would be used to boost its capital.[33] Shenzhen, the dynamic city that neighbours Hong Kong, which hosts one of China's stock markets - Shanghai has the other - last week launched a Nasdaq-style second board, named ChiNext, with 28 start-ups. These allegedly small companies' flotations raised $2.5bn, were on average oversubscribed 120 times, and priced the firms at an average 56 times their earnings in 2008. If this isn't a supreme sign of a bubble, what else is it? David Harilela, a scion of the most successful Indian family in Hong Kong, who is developing a luxury estate in Kowloon Tong, has no doubts: "The bubble is starting," he asserts. One of the results of this extraordinary sloshing around of cash is naturally increasing the already yawning gaps in China and Hong Kong between the wealthy, connected elite, and the rest.[4] China Pacific hired China International Capital Corp (CICC) as the lead underwriter for the sale, sources with direct knowledge of the situation have told Reuters. The insurer said on Oct. 28 that China's securities regulator had accepted its application for a Hong Kong listing.[33] SHANGHAI, Nov 5 (Reuters) - China Pacific Insurance (Group) Co Ltd ( 601601.SS ), China's third-largest life insurer, plans to carry out its planned Hong Kong listing by Christmas, the official China Securities Journal said on Thursday.[33]
HONG KONG, Nov 4 (Reuters) - Hong Kong shares may rise on Wednesday on bargain hunting after the market's fall in the last two sessions, with China Unicom (0762.HK: Quote, Profile, Research ) in focus after it signed up over one million 3G subscribers.[34] HONG KONG, Nov 5 (Reuters) - These are some of the leading stories in Hong Kong newspapers on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.[35]
Hong Kong's extremely low interest rates and easy lending policies are prompting "a sharp run-up in prices for certain real and financial assets," the IMF warned Tuesday.[21] In another report released by the IMF in May on the regional economic outlook, a contraction of 4.5 percent was projected for Hong Kong in 2009, followed by a modest growth of 0.5 percent in 2010. The IMF mission on Tuesday also said they expected unemployment to decline in the coming months and inflation pressure to remain little.[12] The IMF said in a report it expects Hong Kong's gross domestic product to contract 2.0%.[28]
The assessment released Tuesday was made by an IMF mission to Hong Kong following consultation discussions with local officials and businessmen, the Information Services Department of the Hong Kong Special Administrative Region (HKSAR) government said.[12]
Rising housing prices, particularly that of the luxury flats, have caused concerns for potential asset bubbles and prompted the Hong Kong Special Administrative Region (HKSAR) government officials to comment on housing prices in the city.[20] Hong Kong Chief Executive Donald Tsang warned last month of the risk of a property bubble and said the government could release more land for residential property development.[9] Hong Kong Chief Executive Donald Tsang said yesterday the government is "closely" monitoring the local property market and has tools available to stabilise it if necessary.[27]
Lawmakers last month organized a march on Hong Kong Chief Executive Donald Tsang's residence to push the government to increase land supply.[21]
HONG KONG (Dow Jones)--China Overseas Land & Investment Ltd. (0688.HK) said Tuesday it agreed to buy four sites in China for a total of CNY10.84 billion.[36] HONG KONG (Dow Jones)--China Eastern Airlines Corp. (CEA) said Wednesday it received conditional approval from China's securities regulator to sell.[37]
Hong Kong international striker Chan Siu-ki is lining up a trial with Tottenham next month. Chan, who scored against Harry Redknapp's men in a pre-season friendly, is expected to undergo a 10-day stint after Hong Kong champions South China and Tottenham agreed a club partnership earlier this week. Chan has scored 22 goals in 27 appearances for his club.[38] Now South China forward Chan is believed to be one of the first players on course to benefit from the fledgling scheme. Chan, who has scored 22 goals in 27 appearances for his club, found the net with a long-range effort against Harry Redknapp's side when the two teams met in early August in the Hong Kong National Stadium. Tottenham executive director Paul Barber believes the partnership with South China will help the growth and development of both clubs. He told the club's official website : "Tottenham Hotspur already has an established following in Hong Kong and given the history and success of South China they are a welcome partner.[39]
Chan, who scored against the White Hart Lane outfit in a pre-season encounter, is expected to travel to North London for a 10-day stint in December. Hong Kong champions South China and Tottenham agreed a club partnership earlier this week which will see an exchange programme put into place, while coaching methods will also be shared.[39]
Chan Siu-ki, 24, will have 10 days to impress Spurs boss Harry Redknapp next month, the South China Morning Post said. The forward has scored 22 goals in 27 appearances for his club South China, the newspaper said, and netted with a long-distance volley against Spurs when the two teams met in Hong Kong in the summer.[40]
Cheung Kong, the flagship of Hong Kong's richest man Li Ka-shing, was down 1.35 percent at 98.95 HK dollars.[19] Sun Hung Kai Properties, the leading residential housing developer in Hong Kong, also went down 1.59 percent to close at 117.8 HK dollars.[19]
Hong Kong dipped 1.76 percent and Sydney 0.20 percent, while Seoul was 0.59 percent off.[41]
Swire Pacific said on Monday that it was considering a separate main-board listing for Swire Properties, a division that holds hotel interests in Hong Kong, the UK, and the United States, but that no final decision had been made.[14] Swire's property portfolio is heavily weighted towards office and retail space in some of the city's prime locations on Hong Kong Island, including Pacific Place and Taikoo Place.[16]
Hong Kong's property market has been bolstered by rising demand among mainland Chinese buyers for luxury homes.[16]
HONG KONG — English Premier League side Tottenham Hotspur have offered a trial to a Hong Kong international striker who scored against the London giants in a pre-season friendly, a news report said Wednesday.[40] Hong Kong international striker Chan Siu-ki is said to be heading to Tottenham for a trial period next month, according to reports in the Far East.[39]
A spokesman explained to us yesterday that the HKMA is simply following "international standards" set in the U.S. and Britain. If those regulators' track record in foreseeing the last financial crisis is anything to go by, Hong Kong would be better served forging its own path.[42] HONG KONG (Dow Jones)--The Hong Kong Monetary Authority kept its base rate at 0.50% Thursday, in line with the U.S. Federal Open Market Committee's decision overnight.[43] The Hong Kong Monetary Authority (HKMA), the city's de facto central bank, told local banks to cap home loans in a bid to curtail speculative buying.[11] The Hong Kong Monetary Authority last month tightened home loans for luxury properties, requiring a 40% down payment instead of the previous 30%.[21]
Asia's biggest financial center will do so toojust because. That's the takeaway from the Hong Kong Monetary Authority's announcement Thursday that the territory will take on new powers to oversee banker compensation. It is the first major act of the new HKMA chief, Norman Chan.[42]
The idea that bankers caused the financial crisis is only credible with politicians and unaccountable bureaucrats. It's especially seductive in the U.S., where Wall Street firms leveraged up to their necks and then took taxpayer money when they were bailed out. No such crisis happened in Hong Kong, where banks more prudently managed their balance sheets.[42] Last week a flat on Conduit Road in Hong Kong's mid-levels was bought for a world record of $51m - $135,626 per square metre.[4] Starting as a trading company in 1816, the company has been operating in Hong Kong for almost 140 years.[16] HONG KONG (Dow Jones)--Guoco Group Ltd. (0053.HK), an investment holding company, has raised its stake in medium-sized Hong Kong lender.[44] HONG KONG (Dow Jones)--HSBC Holdings PLC (HBC) unit Hongkong & Shanghai Banking Corp. said Thursday it left its best lending rate unchanged.[45] The latest figures come two weeks after the agency said Hong Kong's unemployment rate fell in the July to September period, the first decline since the start of the global economic crisis in August 2008.[31] Hong Kong's banking system weathered the global financial crisis and was now "healthy, liquid and well capitalized," the report said.[11] The official explanation is that Hong Kong wants to curb "excessive risk-taking" that contributed to the global financial crisis.[42]
The mood appeared frenetic, as people called out in answer to the pleading of a man in the centre with a roving microphone. It proved something altogether more pious in Hong Kong terms: it was a promotion of the sale of apartments off the plan.[4] The protracted process of recovery in the main industrial economies is likely to mean that the contribution to Hong Kong's economic growth from external demand should remain relatively weak for some time, it said.[12] Hong Kong's banking system has proved to be resilient over the past year, and it remains healthy, liquid and well capitalized, it added.[12] The Hong Kong champions and Tottenham on Tuesday agreed a "club partnership", the paper said, in an effort to boost the English side's profile in Asia.[40] Trinity Ltd ( 0891.HK ), a unit of consumer goods exporter Li & Fung ( 0494.HK ), will debut in Hong Kong.[5] A FEW days ago as I was walking past the foyer to a large apartment complex in Hong Kongs mid-levels, I did a double-take. It was late in the evening, yet the room was packed to overflowing with people.[4]
Reuters calculations based on the closing price of Tingyi's Hong Kong-listed stock valued the share issue at HK$3.4 billion ($438 million). [7] The insurer, partly owned by the Carlyle Group, is in the final stages of preparing for the listing and plans to offer no more than 1 billion Hong Kong-listed H shares at no less than HK$23.52 ($3.04) per share, the newspaper reported, citing a source familiar with the situation.[33]
Aviation-to-property conglomerate Swire Pacific ( 0019.HK ) ( 0087.HK ) said on Monday that it was considering a separate main-board listing for property division Swire Properties Ltd. The South China Morning Post, citing bankers specialising in new listings, said the spinoff could raise HK$30 billion ($3.9 billion).[5] The listing is expected in the first half of next year, according to some media reports. "We believe the market will take this news positively, as it appears to us to signal the group's intention to develop its property businesses more aggressively," Goldman Sachs said in a research note. "On the other hand, it remains uncertain how the potential spinoff would change its growth strategy and project execution," the note added, maintaining a "neutral" rating on the stock. Swire Properties, which was first listed in June 1977, was taken private by its parent and delisted from the stock exchange in July 1984.[14]
As Asian economies zoom ahead and the U.S. and EU and Japan keep interest rates low, lots of capital is flowing to developing Asia. That's a recipe for quick inflation of asset prices, something already being seen in real estate, commodities, stocks and currencies. 'As liquidity is working its way through the system, and demand is relatively low, the credit is finding its way to stock exchanges and real estate markets. It's a danger,' says Vikram Nehru, the World Bank's chief economist for East Asia and Pacific.[46] Mr. Nehru says the asset price situation is of particular concern for China, the largest economy in the group. 'The problem China has is that if they tighten monetary policy, it will lead to further inflows of foreign exchanges. They have to resort to administrative ceilings on credit, and especially sectors like real estate,' he says.[46]
Master Kong Holdings, a subsidiary of Ting Hsin International Group, the largest Taiwanese-funded company in China, is expected to offer 380 million TDRs in Taiwan at an estimated NT$40 (US$1.23) per TDR. [23] Taipei, Nov. 2 (CNA) Master Kong Holdings, China's leading instant noodle maker, filed an application with the Taiwan Stock Exchange (TWSE) Monday to list Taiwan depositary receipts (TDRs), according to a fund management source.[23]
The China Enterprises Index.HSCE of top locally listed mainland Chinese stocks was set to fall 0.98 percent to 12,704.96.[17] The benchmark Hang Seng Index opened down 2.57 percent at the day's low of 21,194.12, tracking losses on the Wall Street as investors worried about the hovering uncertainties over the economic recovery amid negative consumption news. The blue chip index narrowed its losses to 1.72 percent by lunch break, and edged up further in the afternoon, partly helped by the strength of the Chinese mainland market.[19]
"We welcome the consideration that is now being given to increasing the supply of land to the market as one of the possible means to help moderate potential property price surges," the IMF said. Property prices have surged by 28 percent overall this year, and price increases for luxury property have topped 40 percent, as wealthy mainland Chinese have snapped up luxury apartments.[9] The IMF encouraged the government to consider the possibility of increasing the supply of land to the market to help in moderating property prices.[16] The IMF said it supported "increasing the supply of land to the market as one of the possible means to help moderate potential property price surges."[21] Kwok Ka-ki, a former lawmaker who organized last month's housing protest, said even the IMF as an outsider could see that more land supply was needed. "Donald Tsang says that he's concerned about property prices, but nothing has been done -- zero," Mr. Kwok said.[21]
News of the company's possible listing comes at a time when rising prices have sparked fears that an asset bubble could be forming in the city's property market. [16] "The quality of the property will assure a premium rating but the remaining assets of Swire Pacific, comprising aviation, marine services, beverages and trading is likely to trade at a steeper discount." it added added.[14] Shares of Asia's No.4 air carrier Cathay Pacific ( 0293.HK ), a unit of Swire Pacific, fell 1.1 percent.[14] Swire Pacific ( SWRAY.PK - news - people ) belongs to the holding company John Swire & Sons, which is headquartered in London and still controlled by the founding Swire family.[16]
Bank of China ( 3988.HK ), China Construction Bank ( 0939.HK ), Industrial & Commercial Bank of China ( 1398.HK ) and Agricultural Bank of China extended new loans of about $19.9 billion in October, up 23 percent from the previous month, the official China Securities Journal reported on Tuesday. [5] Gold and silver jewellery sales have risen by 15.5 per cent in China in 2009, and overall sales are expected to reach $45bn by the end of the year.[4] Fuel sales led September's increase with an 11.6 per cent rise, the agency said. Sales of consumer durable goods such as appliances, along with watches and jewellery, food, tobacco and electrical goods, rose between 2.3 per cent and 8.3 per cent, the agency said.[31]
In Seoul, Hyundai Motor rose 2.9 per cent to 105,000 won. The company controlled 4.4 per cent of the U.S. auto market at the end of September, according to Autodata Corp. Kia Motors Corp., which got 30 per cent of its revenue last year in North America, gained 2.8 per cent to 18,150 won.[27] Zijin Mining rose 1.6 per cent to HK$7.78 after gold futures in New York gained 1 per cent in after-hours trading.[27] Prices jumped 1.3 per cent to $1,054 an ounce in New York yesterday, the highest closing level since October 23.[27] National Australia Bank, the country's third-largest by market value, lost 1.8 per cent to A$28.39, while Westpac Banking Corp., the second biggest, dropped 0.6 per cent to A$25.43. Australia's central bank raised its overnight cash rate target to 3.5 per cent from 3.25 per cent, as forecast by 18 of 22 economists surveyed by Bloomberg News.[27] National Australia Bank sank 1.8 per cent as the country's central bank raised interest rates for the second time in four weeks.[27]
The S&P 500 advanced 0.7 per cent yesterday as the Institute for Supply Management's factory index rose to a three-year high. [27] Among stocks that gained today, Hyundai Motor Co. added 2.9 per cent in Seoul as Ford said it expects to be "solidly profitable" in 2011.[27] Motor vehicle and parts sales fell the most at 7.8 per cent, followed by furniture and apparel, which dropped between 1.3 per cent and 5.6 per cent.[31]
The revised estimate of the value of retail sales in August, at22.7 billion HK dollars (2.9 billion U.S. dollars), edged down by 0.1 percent year on year, while the volume of retail sales decreased by 0.9 percent year on year.[8] The agreements were worth a total of 45.5 billion HK dollars (5. 8 billion U.S. dollars), up 140 percent year on year but down 32.2 percent from September.[20]
The total value stood at 36.3 billion HK dollars (4.7 billion U.S. dollars), down 35.3 percent month on month.[20]
Turnover totaled 65.12 billion HK dollars (8.35 billion U.S. dollars), compared with last Friday's 76.35 billion HK dollars (7.79 billion U.S. dollars). Analysts said they saw support for the Hang Seng Index at 21,000 and resistance at 22,000 or slightly lower positions, adding that the downside risks might be increasing.[19]
Concerns about the price spike -- largely driven by mainland Chinese buyers -- peaked last month when a luxury flat sold for 57 million U.S. dollars, a world record at 11,300 U.S. dollars per square foot.[11] Chinese oil refiner Sinopec (0386.HK: Quote, Profile, Research ) said it will buy about one million barrels per day of crude from Saudi Arabia next year, a volume nearly 30 percent above the current rate. The firm expects its refining business to stay profitable in the last quarter.[34]
After netting out the effect of price changes over the same period, the volume of retail sales increased by 1.0 percent year on year in September, according to the estimates released by the Census and Statistics Department.[8] Based on the seasonally adjusted series, the volume of total retail sales increased by 4.5 percent in the third quarter compared to the second quarter. The HKSAR government spokesman said he expected continued support for consumer confidence and retail sales from factors such as the "the gradual improvement of the local economy, the resilience of the labor market as well as the relief measures." The rebound in tourism will also help, he added.[8]
Lawmakers said the new measures fall short, and urged the government to prosecute banks that misled investors and to ban some risky products outright. Under the new regulations, banks must issue risk warnings for complex products and record conversations between their sales staff and clients to prevent deception, K.C. Chan, Secretary for Financial Services and the Treasury, said at a legislative hearing Monday. The government was also considering setting up an investor education body and a financial services ombudsman, he said.[26] Shouldn't the government exercise discretion and ban certain products that are very complicated, very risky or whose terms are unfair to investors?" Ho said. Chan argued disclosure-based regulation is the international norm, adding that the new measures require bank staff to explain their products in layman's terms and assess their clients' appetite for risk.[26]
The report says the surprise growth is better news for Asia's poor. Those living on less than $2 a day will drop to 446 million people in 2010 from 508 million in 2008. That's faster than the World Bank figured based on its previous growth forecast. [46] The World Bank issued its semiannual report on East Asia today calling the recovery there'surprisingly swift and very welcome.' But the report warned of what might come next: dangerous asset bubbles. Besides raising the bank's growth forecast for the region to 6.7% this year from 5.3%, the report is notable because it recognizes the burdens Asia faces for being the first region to come out of the global slowdown.[46]
Inflationary pressures could force east Asian central banks to tighten monetary policy "sooner rather than later" to choke off emerging asset bubbles, the World Bank warned yesterday.[25] Concerns are mounting that efforts by governments and central banks to stoke a recovery will create a nasty side effect: asset bubbles in real-estate, stock and currency markets, especially in Asia.[24]
"We're tending towards the view that we will see some relapse next year as people basically lose faith in governments' ability to continue to come to the rescue," said Peter Elston, a Singapore-based strategist at Aberdeen Asset Management, which had about $234 billion under management as of September 30.[27] Evergrande raised $729 million, well below the $2.1 billion offer it attempted last year.[2]
Ford, the only major U.S. auto maker to avoid bankruptcy, posted a quarterly pre-tax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion, or $1.32.[27]
The core of China's economy remains in state hands, with only the manufacturing and distribution sectors available for true private and/or foreign ownership. It's no surprise the cash ends up in houses and shares. It's also inevitable that, given the way the government controls the currency, that China will continue to record trade surpluses. It does help keep workers employed in export factories, but also helps keep their wages down.[4] The shares rose to as high as HK$101, the highest since Feb. 5, 2008, before steadying at HK$98.20, still up 3.4 percent and bucking a 0.43 percent fall in the boarder market.HSI.[14] Even a 0.79 percent pick-up in New York Monday ' after data showing U.S. manufacturing rose for a third straight month ' was unable to ease jitters.[41] The results of the U.S. Federal Reserve's policy meeting late Wednesday ' with the Fed's outlook in focus ' and a jobs report Friday will determine the direction of Asian markets in the near term, analysts said. The Fed is expected to hold its key lending rate steady in a range of zero to 0.25 percent.[32] The IMF blamed the price run-up on low interest rates imported from the U.S., saying that "the implications of the resulting high level of liquidity will have to be deftly managed." The HKMA says luxury home prices are now at a historic peak, surpassing their levels after the last great run-up in the mid-1990s.[21] "There is a risk that prices could become driven more by short-term liquidity conditions, divorced from fundamental forces of supply and demand," the IMF wrote. Public concern has been rising after a surge of some 30% in the residential market this year, capped by a number of record transactions in the luxury market.[21]
A report released in October by the IMF has projected a contraction of 3.6 percent in 2009 and a growth of 3.5 percent in 2010.[12] Resource-related companies across the region jumped Wednesday after gold surged to record highs, helped by news of the Indian central bank's purchase of 200 tonnes the precious metal from the IMF.[32]
Asian stocks fell, led by banks and developers, as UBS reported a wider-than-estimated loss amid investor concern that the withdrawal of stimulus measures will cause the global recovery to falter.[27] The paper indicated that a China Pacific investor relations official could not confirm the listing plans. "We have not yet received such information.[33]
China Mobile, the leading carrier on the Chinese mainland, was down 0.2 HK dollars, or 0.27 percent, at 73.8 HK dollars.[19] The leading insurance players also gained ground, with China Life up 1.5 percent at 37.1 HK dollars and Ping An up 0.29 percent at 69.8 HK dollars.[19]
The mainland banks were mostly lower, with China Construction Bank down 0.59 percent, Bank of China down 1.31 percent and Bank of Communications down 1.05 percent.[19]
By comparison, Agile Property ( 3383.HK ) trades at 12 times 2010 earnings, while China Overseas Land ( 0688.HK ) trades at 16 times. [2] Evergrande has the largest land reserves among mainland property developers, with a total gross floor area (GFA) of about 51.2 million square meters, and with an average cost of about 445 yuan ($65.19) per square meter.[2]
Sales of furniture and fixtures also fell (by 1.3%), despite the big jump in property prices.[22] Total retail sales in September were HK$21.4 billion (S$3.92 billion), the Census and Statistics Department said in a statement.[31]
"Price pressures should remain muted and, given our current outlook for global commodity prices, consumer price inflation should end 2010 close to zero," said the report released on the website of the International Monetary Fund. [12] Analysts tipped investors to remain cautious until the end of a U.S. monetary policy meeting and the release of a non-farm payrolls report on Friday.[41]
Opposition lawmaker Ronny Tong criticized the government for not focusing on legal action. "I think it's strange that there is not a single case of prosecution after investigating for more than a year," Tong said. Another lawmaker, Albert Ho, asked Chan why the government didn't consider banning certain risky products altogether, as do a number of other developed markets when it comes to selling to retail investors.[26]
The gauge has surged 88 per cent from a three-month low on March 2 on signs that government stimulus measures are reviving the global economy.[27]
Stocks on that MSCI gauge trade at an average 22 times estimated profit, the lowest level since May 14, according to Bloomberg data. That's still higher than the 13.7 times at the start of the year. [27] Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms.[14]
To view or change all of your email settings, visit the Email Setup Center ]] Email Setup Center. [21]
SOURCES
1. China's Evergrande up 14.3 pct ahead of HK debut | Markets | Europe | Reuters
2. UPDATE 1-Evergrande shares up 14.3 pct in HK debut | Markets | Europe | Reuters
3. FT.com / Equities - Bullish debut for Chinese property IPO
4. Chinas stimulus bubble bursting? | The Australian
5. HK shares seen higher on Wall St rise; eyes on banks | Industries | Financial Services & Real Estate | Reuters
6. Tingyi plans 380 mln TDR unit issue in December - Forbes.com
7. UPDATE 1-Tingyi plans $440 mln Taiwan share offer in Dec | Stocks | Reuters
8. Hong Kong's retail sales return to year-on-year growth in September _English_Xinhua
9. UPDATE 1-IMF frets about Hong Kong asset price inflation | Reuters
10. FT.com / Columnists / World View - Hong Kong property bubble still has room to grow
11. AFP: IMF warns over surge in Hong Kong property prices
12. IMF raises growth forecasts for Hong Kong economy _English_Xinhua
13. HK stocks set to open down 0.10 pct; Swire Pacific gains | Markets | Asia | Reuters
14. UPDATE 1-Swire soars to 20-mth high on spinoff hopes | Reuters
15. HK Shares End Down On Chinese Banks; Swire Pacific Rises - WSJ.com
16. Blowing Bubbles In Hong Kong - Forbes.com
17. HK stocks set to open down 1 pct; Evergrande rises | Industries | Financial Services & Real Estate | Reuters
18. HK stocks set to open 0.7 pct higher on bargain hunting | Markets | Asia | Reuters
19. Hong Kong stocks narrow losses to end 0.61% lower_English_Xinhua
20. Hong Kong's October flat sales down 23% from previous month_English_Xinhua
21. Hong Kong Asset Prices Draw Concern - WSJ.com
22. HK retail sales rise in September
23. Master Kong applies for TDR listing in Taiwan - Taiwan News Online
24. Fears of a New Bubble as Cash Pours In - WSJ.com
25. FT.com / Asia-Pacific - Asia warned over emerging asset bubbles
26. Hong Kong tightens regulation of derivatives sales - BusinessWeek
27. Asian stocks fall on stimulus concern, UBS loss
28. IMF Boosts Hong Kong 2009, 2010 Economic Forecasts - WSJ.com
29. HK Dollar Up As HK Stock Gains Attract Inflows; To Stay Strong - WSJ.com
30. HK Dollar Slightly Down Late As Weaker HK Stocks Trim Inflows - WSJ.com
31. HK retail sales up 2.4%
32. Daily Times - Leading News Resource of Pakistan
33. China Pacific to list in HK by Christmas -paper | Industries | Financial Services & Real Estate | Reuters
34. HK shares may rise on bargain hunting after 2-day fall | Quotes | Company News | Reuters
35. PRESS DIGEST - Hong Kong - Nov 5 | Industries | Financial Services & Real Estate | Reuters
36. China Overseas Land To Buy 4 Sites In China For CNY10.84 Bln - WSJ.com
37. China Eastern Gets Conditional OK To Sell Additional A Shares - WSJ.com
38. Spurs set to take Hong Kong international Chan Siu-ki on trial | Mail Online
39. Sky Sports | Football | Premier League | News | Chan linked with Spurs trial
40. AFP: Spurs give trial to Hong Kong striker
41. Daily Times - Leading News Resource of Pakistan
42. Hong Kong Regulatory Lemmings - WSJ.com
43. HKMA Keeps Base Rate At 0.50% After Fed Stands Pat - WSJ.com
44. Guoco Group Raises Bank Of East Asia Stake To 8.01% From 7.99% - WSJ.com
45. HSBC Keeps HK Dlr Prime Lending Rate Unchanged At 5.00% - WSJ.com
46. World Bank Warns Asian Recovery May Fuel Bubble - Real Time Economics - WSJ
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