8:12 AM
admin
Mixed stock trading in the U.S. overnight isn’t likely to diminish investor worries about China’s economic and profit outlook. Shanghai’s main stock index yesterday declined 1.4% to close at its lowest level in 10 weeks. The market is likely to today to focus on companies posting earnings results. Some traders will be looking to close their positions ahead of the next week’s long holiday.
Several government controlled Chinese blue-chips posted mixed 2011 results yesterday, SAIC Motor, the Shanghai-based joint venture partner of GM, said net profit rose by 23% to $3.2 billion, outpacing the overall increase in auto industry growth in China last year. PetroChina, the world’s largest oil company by market capitalization, said its earnings dropped by 5% last year to $21 billion. And net profit at the Industrial and Commercial Bank of China climbed by 25% to $33 billion. The bank’s shares have gained 26% in the past year.
Yesterday’s stock market debut by Ningbo Cixing at the Shenzhen Stock Exchange was less than impressive: Its shares tanked by 13.7%. But their close at 30.22 yuan each was enough to mint the chairman Sun Pingfan, 42, as China’s latest billionaire with a fortune worth $1.36 billion (See article here.)
Lower than expected earnings at Sany Heavy Industry, a big China rival ofCaterpillar, took a bite out of the wealth of the country’s second-richest man. Sany said sales last year rose by about half to $8 billion. That helped the company’s net profit climb 54% to $1.4 billion. Chairman Liang Wengen ranked No.113 on the 2012 Forbes Billionaires List with wealth of $8.1 billion. He was joined by three other Sany executives on the list. Liang ranked No. 1 on the 2011 Forbes China Rich List, but lost the top spot in the country to Robin Li of Baidu on the new billionaires list published this month.
Investors in Hong Kong continued to push shares in China’s No. 2 electronics retailer lower its own worse-than-expected earnings announcement. Gome, whose main owner is imprisoned billionaire Wong Kwong Yu, on Wednesday plunged by 21% after it reported a 6% decline in 2011 net profit. (See storyhere.) Its shares lost another 5% yesterday. Gome’s competition includes Five-Star, a subsidiary of Best Buy.
New China Life Insurance, an insurer 12% owned by Zurich Insurance and also backed by Chinese billionaire Huang Rulun, rose by 0.2% in Shanghai yesterday after it said net profit gained 24% from a year earlier, to $444 million. Huang ranked No.464 on the 2012 Forbes Billionaires List with wealth of $2.6 billion.
In the electronics industry, Shenzhen-listed Shenzhen Luxshare Precision Industry eked out a 0.03% rise after said net profit last year more than doubled to $41 million. The component maker is a supplier to Lenovo. Chairwomen Wang Laichun and his brother Wang Laisheng both ranked No. 327 on the 2011 Forbes China Rich List with wealth of $580 million each.
Besides Ningbo Cixing, three new IPOs that listed in Shanghai yesterday fell. Anshan Heavy Duty Mining Machinery, which supplies the coal mining and road construction industry, lost 9.5%; Jiangsu Yuxing Film Technology, whose customers include GE and Philips, fell 16.5%; and LED instrument maker Hangzhou Everfine Photo-e-info declined 9.7%.
– With Maggie Chen
source: forbes.com
please give me comments thanks
Posted in: 
0 comments:
Post a Comment