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China, HK shares up; cling to signs of govt support By Matthew Goldstein Of Reuters

China bank, property shares rally on signs of govt support

 * Vaccine-makers jump after govt order for H1N1 vaccine
 * China continues to push IPOs; approves CNCEC
  (Updates to midday)
 By Parvathy Ullatil & Claire Zhang
 HONG KONG/SHANGHAI, Sept 7 (Reuters) - China stocks index
rose 1.6 percent on Monday after Chinese regulators eased inbound
investment rules but continued pushing initial public offerings
into the market.
 Hong Kong shares followed suit on hopes that the Chinese
government will continue to support its stock market while a
smaller-than-expected cut in U.S. jobs in August also encouraged
investors to return to risk-taking.
 China's foreign exchange regulator announced late on Friday
new draft rules governing investment quotas for the Qualified
Foreign Institutional Investors (QFII), raising the upward limit
for individual institutions to $1 billion from the existing $800
million. [ID:nPEK324660]
 Hong Kong shares jumped late on Friday after the announcement
to post their biggest single day gain in six weeks.
 But the new rules are expected to have only a limited impact
because total approved QFII quotas are worth only less than 1
percent of China's total stock market capitalisation.
 "The QFII news is part of measures by regulators to bolster
the stock market," said Fan Jianjun, head of securities research
unit of Development Research Centre of the State Council.
 "But it will only have more symbolic than real impact on the
market because QFIIs' capital base is really too small."
 IPOS STILL ON TRACK
 The benchmark Shanghai Composite Index .SSEC ended the
morning at 2,907.498 points after posting a slightly higher
weekly gain last week for the first time in five weeks.
 Gaining Shanghai A shares outpaced losers by 870 to 46, while
turnover edged down to 74 billion yuan ($11 billion) from a
moderate 84 billion yuan on Friday midday.
 China's biggest property conglomerate, China State
Construction Engineering Corp (601668.SS), rose 0.6 percent to
5.33 yuan after saying it had won an overseas contract worth $1.9
billion and a domestic contract worth 5.1 billion yuan ($747
million).
 Vaccine-makers outperformed, with Hualan Biological
(002007.SZ) jumping 10 percent to 45.03 yuan, after the
government on Friday ordered 7.3 million doses of vaccines for
the H1N1 strain of flu from domestic firms Sinovac Biotech
(SVA.A) and Hualan Biological. [ID:nPEK342918]
Analysts said that August economic data, mostly to be released
later this week, would indicate that China's recovery was still
on the right track, including improving exports.
 "Positive news slightly outweighs, suggesting the stock index
may continue a measured uptrend," said analyst Wen Lijun at
Nanjing Securities.
 In negative news, China's securities regulator said late on
Friday that it had approved China National Chemical Engineering
Co (CNCEC) for a stock IPO, dousing rumours it had put new
offerings on hold. [ID:nPEK329203]
 Metallurgical Corp of China (MCC), which is launching the
country's second-largest IPO this year worth as much as 19
billion yuan, will take institutional subscriptions on Tuesday
and retail subscriptions on Wednesday, draining funds from
existing stocks, analysts said.
 CHINA BANKS, PROPERTY GAIN
 By 0345 GMT the benchmark Hang Seng Index .HSI was 1.4
percent higher at 20,603.58, extending Friday's strong gains.
 "To provide grounds for stronger investment confidence,
we expect China to soon table measures, such as industry
consolidation directives and market opening guidelines," said
Taifook Securities analyst Marco Mak.
 The China Enterprises Index .HSCE, which represents top
locally listed mainland Chinese stocks, was up 1.6 percent at
11,949.45.
 China Unicom (0762.HK) rose 1.1 percent to HK$10.86 after
Spain's Telefonica (TEF.MC) said on Sunday it had reached a deal
with China's No. 2 wireless operator whereby each would buy $1
billion worth of the other's shares as part of a strategic
alliance.
 The Spanish telecoms company said in a regulatory statement
that its stake in Unicom would rise to about 8.06 percent, while
Unicom would hold between 0.885 and 0.892 percent of Telefonica.
[ID:nL642015]
 Chinese bank and property stocks extended gains on Monday
after Beijing's move to hike the upper limit for stock
investments by foreign funds reassured investors the government
was unlikely to take drastic measures to stifle the rally in the
stock market.
 China Construction Bank (0939.HK), China's No.2 lender jumped
1.7 percent while property developer China Overseas Land
(0688.HK) advanced 4.8 percent.
 Broad Intelligence International Pharmaceutical Holdings
(1149.HK) soared 44 percent to HK$0.95 after it said it would buy
an integrated software, application and solutions provider in
China, for HK$1.3 billion, to diversify it business. Trading in
the shares resumed on Monday after staying suspended from Aug.
28.
 (Editing by Jacqueline Wong)

China bank, property shares rally on signs of govt support

 * Vaccine-makers jump after govt order for H1N1 vaccine
 * China continues to push IPOs; approves CNCEC
  (Updates to midday)
 By Parvathy Ullatil & Claire Zhang
 HONG KONG/SHANGHAI, Sept 7 (Reuters) - China stocks index
rose 1.6 percent on Monday after Chinese regulators eased inbound
investment rules but continued pushing initial public offerings
into the market.
 Hong Kong shares followed suit on hopes that the Chinese
government will continue to support its stock market while a
smaller-than-expected cut in U.S. jobs in August also encouraged
investors to return to risk-taking.
 China's foreign exchange regulator announced late on Friday
new draft rules governing investment quotas for the Qualified
Foreign Institutional Investors (QFII), raising the upward limit
for individual institutions to $1 billion from the existing $800
million. [ID:nPEK324660]
 Hong Kong shares jumped late on Friday after the announcement
to post their biggest single day gain in six weeks.
 But the new rules are expected to have only a limited impact
because total approved QFII quotas are worth only less than 1
percent of China's total stock market capitalisation.
 "The QFII news is part of measures by regulators to bolster
the stock market," said Fan Jianjun, head of securities research
unit of Development Research Centre of the State Council.
 "But it will only have more symbolic than real impact on the
market because QFIIs' capital base is really too small."
 IPOS STILL ON TRACK
 The benchmark Shanghai Composite Index .SSEC ended the
morning at 2,907.498 points after posting a slightly higher
weekly gain last week for the first time in five weeks.
 Gaining Shanghai A shares outpaced losers by 870 to 46, while
turnover edged down to 74 billion yuan ($11 billion) from a
moderate 84 billion yuan on Friday midday.
 China's biggest property conglomerate, China State
Construction Engineering Corp (601668.SS), rose 0.6 percent to
5.33 yuan after saying it had won an overseas contract worth $1.9
billion and a domestic contract worth 5.1 billion yuan ($747
million).
 Vaccine-makers outperformed, with Hualan Biological
(002007.SZ) jumping 10 percent to 45.03 yuan, after the
government on Friday ordered 7.3 million doses of vaccines for
the H1N1 strain of flu from domestic firms Sinovac Biotech
(SVA.A) and Hualan Biological. [ID:nPEK342918]
Analysts said that August economic data, mostly to be released
later this week, would indicate that China's recovery was still
on the right track, including improving exports.
 "Positive news slightly outweighs, suggesting the stock index
may continue a measured uptrend," said analyst Wen Lijun at
Nanjing Securities.
 In negative news, China's securities regulator said late on
Friday that it had approved China National Chemical Engineering
Co (CNCEC) for a stock IPO, dousing rumours it had put new
offerings on hold. [ID:nPEK329203]
 Metallurgical Corp of China (MCC), which is launching the
country's second-largest IPO this year worth as much as 19
billion yuan, will take institutional subscriptions on Tuesday
and retail subscriptions on Wednesday, draining funds from
existing stocks, analysts said.
 CHINA BANKS, PROPERTY GAIN
 By 0345 GMT the benchmark Hang Seng Index .HSI was 1.4
percent higher at 20,603.58, extending Friday's strong gains.
 "To provide grounds for stronger investment confidence,
we expect China to soon table measures, such as industry
consolidation directives and market opening guidelines," said
Taifook Securities analyst Marco Mak.
 The China Enterprises Index .HSCE, which represents top
locally listed mainland Chinese stocks, was up 1.6 percent at
11,949.45.
 China Unicom (0762.HK) rose 1.1 percent to HK$10.86 after
Spain's Telefonica (TEF.MC) said on Sunday it had reached a deal
with China's No. 2 wireless operator whereby each would buy $1
billion worth of the other's shares as part of a strategic
alliance.
 The Spanish telecoms company said in a regulatory statement
that its stake in Unicom would rise to about 8.06 percent, while
Unicom would hold between 0.885 and 0.892 percent of Telefonica.
[ID:nL642015]
 Chinese bank and property stocks extended gains on Monday
after Beijing's move to hike the upper limit for stock
investments by foreign funds reassured investors the government
was unlikely to take drastic measures to stifle the rally in the
stock market.
 China Construction Bank (0939.HK), China's No.2 lender jumped
1.7 percent while property developer China Overseas Land
(0688.HK) advanced 4.8 percent.
 Broad Intelligence International Pharmaceutical Holdings
(1149.HK) soared 44 percent to HK$0.95 after it said it would buy
an integrated software, application and solutions provider in
China, for HK$1.3 billion, to diversify it business. Trading in
the shares resumed on Monday after staying suspended from Aug.
28.
 (Editing by Jacqueline Wong)

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September 7, 2009 - Posted by | Uncategorized

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