China Enterprises Index plunges 3.27%

Special Report:Global Financial Crisis

HONG KONG, Feb. 24 (Chinese media) -- The Hang Seng China Enterprises Index went down 238.80 points, or 3.27 percent, to close at 7,068.21 on Tuesday.

The H-shares index, initiated in August 1994 and readjusted on March 10, 2008, tracks the overall performance of 42 Chinese mainland state-owned enterprises listed on the Hong Kong Stock Exchange.

Hang Seng China H-Financials Index plunged 254.60 points, or 2.68 percent, to close at 9,230.88.

The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10, 2007, tracks the performance of nine major banks and insurers of the Chinese mainland.

Hang Seng Mainland Composite Index was down 2.87 percent at 2, 399.41.

Introduced on Oct. 3, 2001 with the latest readjustment effective on Oct. 29, 2008, Hang Seng Mainland Composite Index gauges the performance of 131 Hong Kong-listed companies with principal places of business in Hong Kong and the Chinese mainland.

Hang Seng China-Affiliated Corporations Index went down 2.78 percent to close at 2,966.73.

The index tracks the performance of 33 locally listed companies with a significant equity interest held by entities in the Chinese mainland.

Hong Kong stocks slump 3.5% in morning session

Special Report:Global Financial Crisis

HONG KONG, Feb. 24 (Chinese media) -- Hong Kong stock market widened its losses in the morning session and tumbled 461.46 points, or 3.5 percent, to finish Tuesday's morning session at 12,713.64 as Wall Street fell more than 3 percent to its 1997 level overnight.

The benchmark Hang Seng Index slumped 385.81 points, or 2.93 percent, to open at 12,789.29 and lost as much as 540.26 points, or 4.1 percent, to half-day low 12,634.84 before narrowing the losses towards morning break.

Half-day turnover stood at 21.66 billion HK dollars (2.79 billion U.S. dollars).

China Construction Bank floats $4.4 bln subordinated bonds

Special Report:Global Financial Crisis

BEIJING, Feb. 24 (Chinese media) -- China Construction Bank (CCB), one of China's four leading commercial lenders, began a 30 billion yuan (4.39 billion U.S. dollars) offering of subordinated callable bonds in the interbank market Tuesday.

The proceeds are intended to enhance its operations and risk management capabilities.

The bank will issue the bonds from Tuesday through March 2.

According to the Beijing-based bank, the issue will have two branches. One will be 15 billion yuan in 10-year fixed rate bonds callable after five years. The other half will be 15-year fixed rate bonds callable after 10 years.

CCB said the issue would improve it capital adequacy ratio, support its strategic development goals and sharpen its competitive edge.

CCB's issue is among several bond issues recently announced by leading Chinese banks. Industrial and Commercial Bank of China, the country's largest commercial lender, announced in October that it would issue up to 100 billion yuan worth of subordinated bonds by the end of 2011.

Shanghai-based Bank of Communications (BOC), the country's fifth-largest lender, said earlier this month it would float up to 80 billion yuan of subordinated bonds before 2011.

Wang Shutong, an analyst with BOC, said the relatively low prevailing interest rates had attracted domestic banks to float bonds.

China has cut interest rates five times and lowered banks' required reserve ratio four times since September as part of its effort to support the economy.

The government has also taken other steps to boost the economy, including a 4 trillion yuan national stimulus package announced in November and a range of specific stimulus plans this year for light industry, petrochemicals, textile and other sectors.

Hong Kong stocks close 3.75% higher on Citi reports

Special Report:Global Financial Crisis

HONG KONG, Feb. 23 (Chinese media) -- Hong Kong stocks extended its early gains

and surged 475.93 points, or 3.75 percent, to close near the day's highest at

13,175.1 on Monday amid reports that the U.S. government could take as much as

25 percent to 40 percent of Citi group's stakes.

Turnover fell slightly to 39.58 billion HK dollars (5.09 billion U.S.

dollars) from Friday's 39.76 billion HK dollars (5.13 billion U.S. dollars).

The benchmark Hang Seng Index recovered 78.79 points, or 0.62 percent, to

open at the day's lowest 12,777.96.

The market sentiment was encouraged by reports that the U.S. government is

in talks with Citi group on taking 25 percent to 40 percent of the financial

institution, lifting the index by as much as 508.81 points, or 4.01 percent, to

the day's peak 13,027.98.

The index softened a little bit to close at 13,175.1, up 475.93 points, or

3.75 percent.

Market giant China Mobile, the country's largest mobile phone operator, was

the market's major driving force. China Mobile advanced 5.06 percent to 71.65 HK

dollars, boosting the index by 90.18 points alone.

Another market heavyweight HSBC, which accounts for the largest weighting

of the index, added 0.91 percent to 55.3 HK dollars.

Hong Kong Exchange and Clearing Ltd., the market's sole operator, bounced

2.35 percent to 65.4 HK dollars.

China's banks and insurance companies were also major contributors to the

market's gains.

China's largest lender ICBC rose 2.45 percent to 3.34 HK dollars. Bank of

China, the country's second largest bank, gained 1.9 percent to 2.15 HK dollars.

China Construction Bank surged 5. 31 percent to 3.97 HK dollars. Bank of

Communications rallied 3.33 percent to 4.96 HK dollars. China Merchants Bank

increased 2.35 percent to 12.22 HK dollars.

China Life, the country's largest insurer, rose 5.22 percent to 23.2 HK

dollars. Ping An, China's second largest insurance company, advanced 4.27

percent to 36.65 HK dollars.

Hong Kong's local property companies were stronger. Sun Hung Kai Property

rallied 3.65 percent to 62.4 HK dollars. Cheung Kong rose 4.36 percent to 65.8

HK dollars. Henderson Land gained 4.06 percent to 25.65 HK dollars. Sino Land

surged 5.33 percent to 6.32 HK dollars. Hang Lung surged 6.15 percent to 14.5 HK

dollars. New World Development went up 0.56 percent to 7.2 HK dollars.

China Enterprise Index or H-shares, which reflect the performance of 42

companies registered on the Chinese mainland listed in Hong Kong, rose 240.69

points, or 3.41 percent, to close at 7,307.01.

Energy companies all rose as global oil prices bounced back above 40 U.S.

dollars a barrel. PetroChina, the country's largest oil producer, went up 3.31

percent to 5.93 HK dollars. Sinopec, Asia's largest oil refiner, rose 3.07

percent to 4.36 HK dollars. CNOOC, China's largest offshore oil company, gained

4.31 percent to 7.02 HK dollars. (7.75 HK dollars = 1 U.S. dollar)

Chinese shares stand above 2,300 mark again on supportive policy expectation

Special Report:Global Financial

Crisis

A stock holder reacts in front of a

board displaying stocks index in Beijing, capital of China, on Feb. 23,

2009. Chinese equities gained almost 2 percent Monday as investors

expected more stimulus policy on property sector, analysts said. The

benchmark Shanghai Composite Index climbed 1.96 percent, or 44.3 points,

to 2,305.78. The Shenzhen Component Index was up 3.61 percen to 8,727.7

points. (Chinese media/Li Xiaoguo)
Photo Gallery

BEIJING, Feb. 23 (Chinese media) -- Chinese equities gained

almost 2 percent to stand above 2,300 points Monday as investor confidence was

boosted by media reports of a possible government stimulus plan for the real

estate sector over the weekend, analysts said.

The benchmark Shanghai Composite Index climbed 1.96

percent, or 44.3 points, to 2,305.78. The Shenzhen Component Index was up 3.61

percent to 8,727.7 points.

Combined turnover was 215.47 billion yuan (31.55

billion U.S. dollars), significantly up from 173.41 billion yuan on the previous

trading day.

Gains outnumbered losses by 864

to 16 in Shanghai and 734 to 14 in Shenzhen.

A stock holder reacts in front of a

board displaying the Shanghai Composite Index in Shanghai, China, on Feb.

23, 2009.(Chinese media/Pei Xin)
Photo Gallery

The upward trend was led by the auto and real estate

sectors.

The real estate sector rose 4.54 percent as media

reported that authorities said the central government had been studying a

stimulus plan for the property sector over the weekend.

Cheng Siwei, a renowned economist, said Saturday at a

public lecture that the property sector had replaced the energy sector as the

last of the ten industries that the government would support to stimulate the

economy.

A plan to rejuvenate China's property sector had

already been submitted to the State Council, China's Cabinet, for discussion and

approval early on this month.

China Baoan and Pearl River Enterprises rose by the

10-percentdaily limit to 9.45 and 7.15 yuan respectively. China Merchants

Property Development soared 9.79 percent to 18.06 yuan.

China Vanke, the country's largest residential real

estate developer, climbed 4.65 percent to 8.1 yuan. Shares of the Poly Real

Estate Group Co., China's second largest developer, gained 5.99 percent to 21.01

yuan.

China's auto shares also surged 5.1 percent as the

government had taken measures to promote new energy cars and subsidize farmers

to boost auto sales in rural areas.

SG Automotive, Fengfan Co., Weichai Power, Dongan

Power and Changfeng Motor rose by the 10-percent daily limit to 7.34 yuan, 8.34

yuan, 28.49 yuan, 7.15 yuan and 8.04 yuan, respectively.

The benchmark Shanghai Composite Index fell from

2,319.44 to 2,209.86 last Wednesday, the largest one-day drop this year in

falling volume as investors worried that large gains since Jan. 1 could not be

sustained, analysts said.