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Investors in China’s main financial district are talking about the following before the start of trade today:
While markets globally have been fixated on the Europe’s debt crisis, Chinese companies have been posting mixed third-quarter earnings reports. Among them:
Sany Heavy Industry, led by China’s richest man Liang Wengen, said today sales climbed by 22% in the third quarter from a year earlier to 11 billion yuan, or $1.7 billion, amid growing demand for its building equipment. (See related story here.)
Shanghai-listed Pang Da Automobile Trade, which last week teamed up with a Chinese partner to buy money-losing Saab Automobile, said today third-quarter net profit climbed by 92% to 299 million yuan. Revenue totaled 14 billion yuan, up 12% from a year earlier. (See story here.) Since it listed in April at the Shanghai Stock Exchange, however, the company’s shares have lost 45.5%.
In the transportation industry, state-run China Eastern Airlines said a 13% rise in revenue in the third quarter, to 24 billion yuan, helped overall profits. Net profit gained 5% to 3.3 billion yuan.
Among companies to report earnings woes: Shanghai-listed Sinovel Wind Group, one of China’s largest wind-turbine maker said net profit in the third quarter was 242 million yuan, plunging 49% from a year earlier. Net profit in first nine months was 900.7 million yuan, also dropping 49% on the year amid rough competition. Chairman Han Junliang ranked no. 132 on the 2011 Forbes China Rich List with wealth of $1 billion.
In news involving Chinese companies traded in Hong Kong, Bosideng International Holdings, China’s biggest down apparel manufacturer, said on Sunday would buy 70% of the “Jessie” women’s apparel chain for cash and stock worth about 892 million yuan, or about $142 million. The move will help diversify Bosideng’s business, and reduce its dependence on winter clothes. (See related article here.)
GCL-Poly, the Hong Kong-listed supplier of silicon products to the solar industry, will team up with Hon Hai Group of Taiwan to produce silicon materials, according to reports. There was no confirmation by GCL as of early this morning. China solar panel leaders such as Suntech have tumbled recently amid falling prices and U.S. anti-dumping threats.
In overnight U.S. trading on Friday, Chinese Internet stocks got a big boost from good earnings news from Baidu. Baidu’s Nasdaq-traded shares closed up by 4.5% after reporting that its third-quarter profit rose by 80%. Chairman Robin Li ranked no. 2 on the 2011 Forbes China Rich List published in August. Online video site Youku shot up by 11%.
And on Friday, China, which already ranks second in the world in the number of billionaires, celebrated a new billionaire family with the successful listing of Jiangsu Hengli Highpressure Oil Cylinder. After a 3.4% rise in its shares at the Shanghai Stock Exchange, chairman Wang Liping, together with his wife Qian Peixin and son Wang Qi, were worth 7.2 billion yuan, or $1.1 billion. The three own a total of 302.81 million shares or 72% of the listed company. (See related article here.)
Two other IPOs climbed on their trading debut in China on Friday. Zhejiang Jinlei Refractories, a maker of refractory materials using in steel manufacturing, soared by 123% to 25.08 yuan, and Xiamen Kingdomway Group, a vitamins supplier whose customers include Bayer and New Hope Group., rose by a third.
Finally, a riot over local government efforts to impose a tax on individual pieces of sewing machinery in Zhejiang province, a Chinese export center, has ended and tax collectors involved have been fired, according to a report in state-run Shanghai Daily on Saturday. The disorder occurred in Zhili, a center for production and trade of children’s clothing. (See related story here.)
– with Maggie Chen
source: forbes.com
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