ces123456
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 Posted: Sun Apr 26, 2009 9:04 am Post subject: Chinese stocks - weekly market wrap-up |
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might be useful...
| Quote: | China Economic Scan Weekly Stockmarket Review – 25 April 2009
25/04/2009. Source: China Economic Scan. Callum Thomas, Managing Director, China Economic Scan
Chinese stocks closed down week on week with the Hang Seng falling –2.19% to 15,258.85, the Shanghai Composite down –2.21% to 2,448.60 and the Shenzhen Component off -2.76% to 9,315.21. But there were bright spots with the world’s largest IPO set to go ahead within the next 2 months, and the new “GEM” stock exchange taking further steps toward implementation.
China Zhongwang Holdings announced it will seek to raise up to HKD12.32 billion (US$1.6 billion) in the world's largest IPO this year. Citic Securities, JPMorgan Chase and UBS are managing the sale. The company will offer 1.4 billion new shares in Hong Kong at a price between HK$6.80-8.80 each. Pricing of its shares is scheduled for April 30 and listing is targeted for May 8.
China Zhongwang, maker of aluminium extrusion products such as window frames and railcar components, is touted as a Chinese economic recovery play and is likely to gain from stimulatory spending. It earned 1.9 billion yuan (US$278m) in 2008 on revenue of 11.3 billion yuan (versus 852 million on 7.5 billion in 2007).
Also revealed during the week; Huiyuan and Coke are rumored to be in talks about Coke establishing a minority stake in the company. Previously Coke had tried to takeover Huiyuan but failed to gain regulatory approval on competition concerns.
Also during the week, the China Securities Regulatory Commission (CSRC) said it would establish a 35 member independent committee, with industry representation, to approve listings on the new Growth Enterprise Market (GEM), which is set to commence operations from the 1st of May this year. The CSRC said, "The GEM has differences from main boards such as company qualifications, information disclosure and supervision. An independent committee is thus necessary,”
A Haitong report said China’s corporate profits fell 73% to 43.4 billion yuan ($6.4 billion) in Q4, with full year profits in 2008 falling 14% to 706.09 billion. Haitong cautioned of a “higher possibility” of further earnings declines in the first half of 2009.
Among those to announce their profits this week, China Mobile said net income in Q1 increased 5.2% to 25.2 billion yuan (US$3.7 billion) from 23.9 billion yuan in Q1 2008. Its operating revenue increased 9.2% to 101.3 billion yuan and EBITDA was up 7.7% to 53.38 billion yuan with an EBITDA margin of 52.7%. Earnings were less than median estimates of 26.5 billion yuan.
Shenzhen Development Bank (SDB), controlled by U.S. private equity firm TPG Capital, posted a 12% rise in Q1 net profit to 1.12 billion yuan ($161 million) from 1 billion a year earlier. Revenue rose 6% to 3.76 billion yuan from 3.55 billion yuan. The result was a turnaround from SDB's 77% slump in annual profit last year after a 5.6 billion yuan bad-loan write-off during the fourth quarter of 2008.
Shares in Yili Industrial jumped almost 8.6%, and shares in Bright Dairy & Food jumped 10% on Thursday, as the government offered a hand out of 3 billion yuan ($439 million) to help improve hog and dairy farming facilities, as well as offering to grant loans to dairy farmers.
Henan Yuguang Gold & Lead said its Q1 2009 profit dropped 75% to 12.9 million yuan; and phone equipment company, ZTE Corp, also released its Q1 profit, but saw an increase of 29% from a year earlier to 78.7 million yuan.
China Economic Scan is a leading provider of daily updates on the Chinese economy and financial markets. China Economic Scan focuses on bringing you the facts from the hundreds of articles that compete for your attention each day. You save time and due to our willingness to probe further and add value with additional facts and research; you get an edge in staying on top of the key developments in the world’s 3rd largest economy. For more info visit www.chinaeconomicscan.com |
http://www.chinaeconomicscan.com/weekreview25april09stocks.html |
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