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Investors in China’s main financial district are talking about the following before the start of trade today:
Stocks may be mixed as investors look for signals of financial stability in Europe and signs of easing of the tight monetary policy that is hurting the China’s real estate industry and small businesses.
A report in the China Business News today says the seemingly done purchase of Saab by two Chinese buyers, Shanghai-listed Pang Da Automobile Trade and unlisted Zhejiang Lotus Automobile (see related story here) may not go ahead after all because it still needs the approval of GM, which has supplied designs and knowhow to Saab. Pang Da is controlled by Chinese billionaire Pang Qinghua, who ranked no. 61 with wealth of $1.48 billion on the 2011 Forbes China Rich List.
In steel industry news, industry leader Baoshan Steel said on Friday it would cut prices in December for key hot- and cold-rolled products. It’s difficult to be optimistic about the trend, the Shanghai Securities News on Friday, citing local analysis.
So much for those forecasts of a hard landing by China’s economy. The country’s economy may be able to grow by 8-8.5% for the next decade, says a top scholar at one of the country’s most prestigious research institutions. Li Yang, the deputy president of the Chinese Academy of Social Sciences, noted, however, that such growth would be a decline from the country’s recent pace. (See related story here.)
In overnight trading in the U.S. on Friday, social media site Renren lost 2% after the company posted a third-quarter loss. The company, whose Friday close of $4.96 is off roughly 80% from its post-IPO 2011 peak, has come to symbolize the losses suffered by foreign investors in some pricey Chinese Internet offerings this year. (See related story here.)
In trading in Hong Kong on Friday, shares in ERA Mining Machinery soared by 21% after the company said Caterpillar of the U.S. offered to acquire it for as much as $886 million. The deal, which needs China approval, would enrich the U.S. expat clan that is its biggest shareholder (see related story here).
Elsewhere in the Chinese media this morning, China Vanke president Yu Liang is reported to have said on Friday that the country’s real estate industry will face a “winter” in 2012. Vanke, one of the country’s largest property developers, will be cautious in buying land in cutting spending, he said, according to a report in today’s Securities Times. The company’s share price fell 0.7% on Friday at the Shenzhen Stock Exchange
Three IPOs fared well on the mainland debuts on Friday. Nanning Baling Technology (002592) rose 62%, China Western Power Industrial (002630), a power equipment maker, gained 31%, and Der International Home Furnishing (002631), a supplier of laminated flooring, closed up 5%. Shares in Hubei Sanfeng Intelligent Conveying Equipment (300276) will start trading tomorrow in Shenzhen. The company recently sold 15 million new shares for 25.5 yuan each.
– with Maggie Chen
source: forbes.com
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