Shares in China
 

Auto shares push China markets higher

China markets finished slightly higher today, led by shares of the automotive and related fields. Financial shares led the Hang Seng Index rose 0.5 percent to a 14-month pre-Olympic high. Shanghai Comprehensive Index added 0.3 percent to 2979.79. The Hang Seng China Enterprise Index, which represents large companies listed in Hong Kong mainland, advanced 0.64 percent to 12,859.71.

Taiwan TAIEX index gained 0.19 percent to 7710.40.

The Hang Seng Index added 0.9 percent financial shares in the bank's edge on new loans extended in September.

Industrial and Commercial Bank of China (SHA: 601398, HKG: 1398), the world's largest lender, advanced 0.32 percent in Hong Kong. China Construction Bank (SHA: 601939, HKG: 0939), second largest bank in China, gained 1.5 percent in Hong Kong. Bank of China (SHA: 601988, HKG: 3988), the third largest, rose 1.8 percent in Hong Kong.

RMB516.7bn banks extended loans in local currency, compared to RMB410.4bn in August, the People's Bank of China said yesterday. M2, the broadest measure of money supply, rose by a record 29.3 percent from a year earlier.
HSBC Holdings Plc (HKG: 0005), the largest bank in Europe, added 1.30 percent.

share on sales of automobiles rose in September, followed by tire manufacturers and steel. Sales of passenger cars in China rose 84 percent to 1.015 million last month, the China Automobile Manufacturers, said Tuesday. Monthly sales have exceeded 1 million units for the first time.

from self-listed mainland rose 2.1 percent on average. SAIC Motor Corp (SHA: 600104), the largest automaker in China, gained 2.6 percent. Dongan Heibao Co. (SHA: 600760) rose by 9.2 percent. The producer of small cars, said yesterday that its earnings during the first three quarters of 3000 will increase percent with plans to revitalize China.
Jiangsu Yueda Investment Co. (SHA: 600805) rose 7.2 percent. Yangzhou Yaxing Motor Coach Co. (SHA: 600213) rose 6 percent.

Tire makers Double Coin Holdings (SH: 600623) and Aeolus Tyre Co. (SH: 600469) jumped to the ceiling of 10 per cent of trading. Qingdao Doublestar Co. (SZ: 000599) rose 8.2 percent. Guizhou Tire Co. (SHE: 000589) rose 7.1 percent.

from mainland listed steel rose 1.8 percent on average. Laiwu Steel Co. (SHA: 600102), a steel manufacturer in east China's Shandong Province, the waves of 9.4 percent. Iron and Steel Co. (SHA: 601003) rose 6.5 percent.

In Hong Kong, Brilliance China Automotive Holdings Co. (HKG: 1114) jumped 12.2 per cent, Great Wall Motor Co. (HKG: 2333) rose by 8.2 per cent and Geely Automobile Holdings (HKG: 0175) grew by 5.5 percent.

China CCB eyeing stake in Malaysia's EON Capital-paper

China Construction Bank (CCB) is interested in acquiring a stake in Malaysian lender EON Capital Bhd, The Edge weekly reported on Saturday.
No. 2 lender in China may apply for approval of the Bank Negara Malaysia to start negotiations soon with EON Capital, the report said, citing an industry source.

"It is possible that the BCC will be given the green light to start negotiations with EONCap under a government to government initiative," the anonymous source said.

EON Capital is the subject of a takeover battle involving its largest shareholder, Hong Kong-based Private Equity Fund Primus Pacific Partners and other shareholders, a map of Hong Leong Bank to acquire the small lender.

Primus has sued to stop Hong Leong Bank, the sixth largest lender in Malaysia, supported EON Capital last year.

The case is pending.

The Edge report, which could not be immediately confirmed, said he does not know how big a stake of CCB is looking.

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Shares of China Construction Bank Corp. Fell

Shares of China Construction Bank Corp (CCB) fell the most in four months. The bank's shares fell 2.9% Monday. The fall was reported due to the depreciation on securities and off balance sheet items.

CCB is the second largest mortgage lender world by market capitalization. The bank was established in 1954 to fund roads, bridges, dams and other public works. The bank has a greater proportion of loans to related infrastructure against its main competitors.

An analyst at Mirae Asset Securities in Hong Kong, Patrick Pong said there is uncertainty in the market about the quality of bank assets.

The People's Bank of China raised interest rates three times and bank reserve requirements six times since October. In 2009, the bank recorded a profit of 106.8 billion yuan. The net interest margin was 2.49% for 2010 compared to 2.41% in 2009 due to rising interest rates. With the increased interest of the bank's net income rose 26% to 134.8 billion yuan.
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