Lujiazui Breakfast: News And Views About China Stocks (June 13)?

Investors in China’s main financial district are talking about the following before the start of trade today:

China stocks may fall today amid continuing concerns about slowing global economic growth, slower economic growth in China, and high inflation in the country. The government is expected to announce May’s CPI report tomorrow. The consensus forecast is about 5.5-5.6%, but a number of economists believe the figure could be higher, media reports said this morning.

In overnight U.S. trading on Friday, China’s Internet stocks continued to deflate.  Spokesman Liu Qi at news site Sina told the China Business News yesterday that New-Wave Investment Holding, which is controlled by Sina’s management team, has no further plan to dispose of its holdings in the company this year.  New-Wave agreed to sell a stake to Goldman in June, its third such disposal since last September, the newspaper said.   Shares in the company plunged 28% last week.  Among other Chinese Internet shares, e-commerce firm Dangdang lost 5.7% on Friday; its shares are off by half so far this year.

Yet not every Chinese online company fell.  Taomee, the children’s online game company and a self-styled Disney of China in the making, soared by 24% on its second day of trading on Friday, after sliding on its debut on Thursday. (See related story here.)

Beijing Orient Landscape, an landscaping company caught up in the property industry downturn, plans to raise up to 2.2 billion yuan by way of private placement of as many as 18 million new shares, the company said. He Qiaonv, together with her family, ranked no. 782 on the 2011 Forbes Billionaires List with wealth of $1.6 billion. Shares closed at 87.19 yuan at Friday, down 2.14%.

China Everbright Bank, one of China’s largest banks, has received approval from Beijing regulators to sell up to 12 billion shares in Hong Kong. However, the bank is still waiting for Hong Kong approval.  It is expected to start trading in Hong Kong in mid-July, the Shanghai Securities News reported today, but at home has been trading below its domestic IPO price.  

In other U.S. trading on Friday, shares in small-cap Advanced Battery Technologies plunged 10.6% amid worried about its accounting.    It’s just the latest among the group to be hit on the same problem.Shares in four newly listed companies on domestic exchanges where mixed on Friday.  LED display supplier Shenzhen Auto Electronics (002587) gained 7.4% to 17.18 yuan; Shandong fertilizer producer Stanley Fertilizer (002588) closed down 11.2% to 31.07 yuan, pharmaceutical supplier Shandong Realcan Pharmaceutical (002589) rose 22.2% to 24.44 yuan, and shares of  Zhejiang Vie Science and Technology (002590) also climbed, by 18%.

source: forbes.com
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