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MAKE MONEY BLOG$~Investors in China’s main financial district are talking about the following before the start of trade today:
Shares may be mixed today as investors digest news about the government’s latest warning about real estate prices, as well as announcements about corporate profits and stock sales.
Shares in heavy equipment makers Sany Heavy and Zoomlion Heavy Industry may be hurt by a story in the China Business News about how slowing domestic demand is leading the two to compete for customers by offering equipment with no down payment. The approach carries risk to the seller. The two compete in China with U.S. giant Caterpillar. Sany Chairman Liang Wengen topped the2011 Forbes China Rich List. Both were members of the 2012 Forbes Asia Fab 50 List.
In the retail industry, Better Life Commercial Chain today announced it plans to sell up to 60 million new shares and raise up to $192 million to expand its number of stores. The company will purchase two small department stores and add 40 supermarkets– 34 in Hunan and 6 stores in Jiangxi – over the next two years. The company had 119 supermarkets and 19 merchandise stores at the end of last year that generated sales of $1.3 billion. Chairman Wang Tian with his wife ranked No. 295 on the 2011 Forbes China Rich list with wealth of $620 million.
Investors in Hong Kong certainly didn’t react well yesterday to plans for a stock sale by Chinese knitting giant Shenzhou International, controlled by Chinese billionaire Ma Jianrong Its stock plunged by 12% yesterday after the company said it would issue new shares – up to 6.8% of its current issued total – to fund expansion. The announced offering price is a steep 9% discount from its April 12 price.
Shares in Hangzhou Shunwang Technology, a supplier of software for Internet cafes whose shares trade on China’s Shenzhen Stock Exchange, rose by 0.7% yesterday said on Friday that it will purchase a like business from Shanda Interactive, the online gaming and entertainment company controlled by Chinese billionaire Chen Tianqiao that delisted from the Nasdaq earlier this year and that has been shedding assets this month. (See related storyhere.)
In U.S. overnight trading, shares in Dangdang, a leader in China’s cutthroat e-commerce business, swooned by 15% after the company said its CFO would resign. Solar concern LDK, whose share rose by 0.3% overnight tho are down more than 70% from a year ago, has placed 3,000 workers “on holiday” on an infinite holiday at a Suzhou plant, according to a report in today’s 21st Century Business Herald. (See related story here.)
Among domestically traded companies posting first-quarter earnings today, Shenzhen-listed electronics maker Shenzhen Luxshare Precision Industry said first-quarter sales climbed to 593 million yuan, or $94 million, up 75% from a year earlier. Net profit was 33 million yuan, or $5 million, up 22%.Luxshare’s clients include Taiwan’s Foxconn Group and Lenovo. Chairwomen Wang Laichun and her brother Wang Laisheng both ranked No. 327 on the 2011 Forbes China Rich List with wealth of $580 million each.
Three new listings at China’s stock exchanges yesterday all rose. Guangdong Homa Appliances, one of China’s largest exporters of refrigerators whose clients include Whirlpool, gained 23%; Shanghai Kangda New Material, which makes adhesive, rose by 13%; and wire and cable maker Guangdong Huasheng Electrical Appliances climbed 22%.
– With Maggie Chen
source: forbes.com
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