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Investors in China’s main financial district are talking about the following before the start of trade today:
Shares in property companies declined yesterday as the Premier Wen Jiabao in Russia for a conference vowed to keep up tight monetary policies that have taken the wind out of the country’s once-galloping real estate market. Among the major developers whose shares fell yesterday, Vanke lost 2.0%. Authorities are also trying to combat higher consumer prices, which has been increasing at an annual rate of 5-6% of late. Signs of real estate market trouble are apparent even here in wealthy Shanghai, where a row of towers built by city-government-controlled developer Greenland stand empty along the once busy Shanghai Expo area. The China Daily reported today that Centaline, a Hong Kong real estate brokerage, plans to close 60 outlets in China and lay off 1,000 workers.
Hong Kong-traded shares in Great Wall Motor, which is also listed Shanghai, gained another 2% yesterday after the automaker on Friday announced plans to expand its production capacity. The company also said on Friday it had forge a cooperation agreement with Delphi, the former parts unit of GM that is eyeing an IPO. Chairman Wei Jianjun, ranked no. 278 on the 2011 Forbes China Rich List with wealth of $650 million. The company is also a member of the 2011 Forbes Asia Fab 50.
Zijin Mining Group, partly owned by Chinese billionaire Chen Fashu, said yesterday it would invest more than $1.5 billion in new mining projects. New projects include Gansu in China. Its Hong Kong-trade shares rose 0.8% yesterday. The company also said yesterday that it has sold $200 million of convertible bonds that it purchased from Glencore Finance in May for $260 million. Nice.
U.S.-based Yum, which runs the global KFC fast-food chain, received some good news today: China regulators have approved its acquisition of the shares it didn’t own in Hong Kong-listed Chinese restaurant chain, Little Sheep. The agreement was first announced in May. Yum rose by 1.2% overnight in U.S. trading. Among Chinese shares that trade in the U.S., attention was focused in part on the troubled solar energy business, where profits are being squeezed by falling prices. Suntech lost 3.6%.
Chinese auto stocks might come under more pressure today following a report of slowing sales in the world’s biggest market for cars. Passenger car sales fell by 4.2% in October from a year earlier, according to a report by the China Passenger Car Association. Shares in SIAC Motor, a China partner of GM, lost 4.5% yesterday.
Yesterday was also a down day for Shenzhen-listed men’s clothing retailer Fujian Septwolves Industry, which today announced plans to issue up to 53 million new shares, raising up to 1.8 billion yuan. Funds will be used to expand its store space by 180,000 square meters, which will add add about 1.4 billion yuan in annual sales. The Shenzhen-listed stock fell 0.4% yesterday. Competition in Chinese retailing has been fierce among both domestic and foreign entrants. Gap, the U.S. fashion retailer, said last month it was eyeing the launch of its Old Navy and Banana Republic brands in the country.
And finally in Hong Kong yesterday, shares in Tingyi (Caymen), the Taiwan company controlled by Forbes Asia cover man from June Wei Ing-chou, rose by 10% in Hong Kong yesterday after the company said it would partner with Pepsi’s bottling operation in China. The deal still requires government approval.
– with Maggie Chen
source: forbes.com
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