China Day Ahead: Airplane Crash in Northeast, Ping An Insurance Earnings
A Henan Airlines plane crashed while landing in China’s northeastern province of Heilongjiang, killing at least 43 people, the official Xinhua News Agency reported, citing government officials.
The Embraer ERJ-190 jet crashed near the runway in Yichun City at 9:36 p.m. local time last night, breaking in two and throwing some passengers out of the cabin before catching fire, Xinhua reported, citing Hua Jingwei, publicity chief of the local committee of the Communist Party of China.
Of the 91 passengers and five crewmembers on the 40-minute flight from Harbin, 53 were rescued and taken to hospitals, the news agency reported. Vice Premier Zhang Dejiang traveled to the scene last night, according to Xinhua.
Ping An Earnings
Ping An Insurance (Group) Co., China’s second-biggest insurer, said first-half profit climbed 29 percent as premiums expanded and its property-insurance unit made money.
Net income rose to 9.61 billion yuan ($1.4 billion), or 1.3 yuan a share, from a restated 7.48 billion yuan, or 1.02 yuan, a year earlier, as determined under International Financial Reporting Standards.
First Solar Tariffs
First Solar Inc., the U.S. company planning the world’s biggest solar-power plant in China, is “reasonably confident” China’s government will set electricity prices high enough to make the project viable, a spokesman said.
The company, which announced the project in September and missed its planned start of construction in June, is still negotiating the “economic conditions” of the power plant with China, said Brandon Mitchener, a Brussels-based spokesman for the Tempe, Arizona-based solar-equipment manufacturer.
China will implement policies aimed at increasing personal income and reducing wealth inequality by increasing the proportion of national income paid to workers, Xinhua News Agency reported, citing the Financial and Economic Affairs Committee of the National People’s Congress.
The changes, to be included in the country’s 2011-2015 five-year plan, will be aimed at enlarging the country’s middle class, Xinhua said, without giving details.
New Stock Accounts
Investors opened 3.8 percent more accounts to trade Chinese stocks during the week ended Aug. 20, as compared with a week earlier, according to the China Securities Depository and Clearing Corp. Investors opened 262,763 accounts last week, it said.
Sasol China Recommendations
Sasol Ltd. said a Chinese panel of experts made “positive recommendations” to the Chinese government on Sasol’s proposal to build a coal-to-fuels plant in the country in a venture with Shenhua Ningxia Coal Industry Group Ltd.
U.S. stocks declined, sending the Standard & Poor’s 500 Index to a seven-week low, as a record plunge in home sales cast further doubt on the viability of the economic recovery.
Boeing Co., Alcoa Inc. and Caterpillar Inc. lost more than 2.7 percent to lead declines in the Dow Jones Industrial Average. Dell Inc. tumbled 3 percent amid reports it will sweeten its offer for 3Par Inc. Pfizer Inc. dropped 1.7 percent after its cancer treatment Sutent failed to improve overall survival in patients with a form of lung cancer.
The S&P 500 tumbled 1.5 percent to 1,051.88 as of 4 p.m. in New York. The Dow Jones Industrial Average retreated 133.96 points, or 1.3 percent, to 10,040.45 after earlier falling as low as 9,991.
THE FOLLOWING SHARES MAY BE ACTIVE TODAY:
China National Materials Co. (1893 HK): The cement and engineering services company, called Sinoma, said first-half net income rose to 448.7 million yuan from 308.9 million yuan a year earlier. The stock gained 4.1 percent to HK$6.12.
China Power New Energy Development Co. (735 HK): The alternative energy company said today it will acquire China Power Dafeng Wind Power Co. from China Power International Holding Ltd., a connected party, for about 504 million yuan in new stock. The stock fell 1.1 percent to 87 Hong Kong cents.
China Railway Construction Corp. (601186 CH): the world’s biggest listed heavy-construction company has won about 8.9 billion yuan of city-rail contracts in Hunan province. The stock increased 0.3 percent to 7.47 yuan.
China Railway Group Ltd. (600390 CH): The world’s second- largest listed heavy-construction company said it is in talks with South Africa’s government for a $30 billion high-speed rail project between Johannesburg and Durban. The stock was unchanged at 4.43 yuan.
China Singyes Solar Technologies Holdings Ltd. (750 HK): The solar-powered products maker said that first-half net income rose to 59.4 million yuan from 53.1 million yuan a year earlier. The stock gained 1.2 percent to HK$4.15
China Zhongwang Holdings Ltd. (1333 HK): The maker of extruded aluminum products said it’s called off talks to buy Qinghai Guoxin Aluminum Industry Inc. because it couldn’t reach an agreement with the sellers on the proposed details of the deal. The stock fell 0.8 percent to HK$4.73.
Datong Coal Industry Co. (601001 CH): China’s second largest coal producer said its first-half net income fell 13 percent from a year earlier to 632 million yuan. The stock added 0.4 percent to 16.69 yuan.
Global Green Tech Group Ltd. (274 HK): The chemical and cosmetics maker said it will send out a revised annual report, including an amended statement from the independent auditors, by Sept. 1. The stock, suspended since April 30, will resume trading in Hong Kong tomorrow.
Hopson Development Holdings Ltd. (754 HK): The real estate developer said it will invest as much as 3.72 billion yuan for a 65 percent stake in a company that’s redeveloping a former factory site in Guangzhou into a garment- and fashion-themed project including office, residential, shopping, hotel and exhibition space. The stock fell 0.6 percent to HK$9.44.
Hybrid Kinetic Group Ltd. (1188): The aspiring automaker said that wholly owned unit HK Capital Co. has entered an entrustment agreement under which it will gain control of a 20.9 percent stake of Yantai Xinchao Industry Co. The stock gained 1.7 percent to 30.5 Hong Kong cents.
Intime Department Store (Group) Co. (1833 HK): Warburg Pincus LLC is seeking as much as $113 million from a sale of 100 million shares in the department-store company at between HK$8.53 and HK$8.80 each, according to a term sheet obtained by Bloomberg News. The stock gained 6.7 percent to HK$9.26.
Jiangling Motors Corp. (000550 CH): the Chinese commercial vehicle partner with Ford Motor Co. said its first-half net income rose 141 percent from a year earlier to 1 billion yuan. The stock gained 3.4 percent to 25.98 yuan.
Metallurgical Corporation of China Ltd. (601618 CH): a state-owned resources developer said its first-half net income rose 4.8 percent from a year ago to 2.2 billion yuan. The stock rose 0.5 percent to 4.15 yuan.
North Asia Resources Holdings Ltd. (61 HK): The mineral producer said it signed an agreement to have Sinosteel Trading Co. buy all the iron-ore products its mine in Mongolia. Sinosteel will also seek investors from China for North Asia’s planned value-added processing facilities at the mine. The stock fell 2 percent to HK$1.49.
Ruinian International Ltd. (2010 HK): Government of Singapore Investment Corp. sold its entire stake in the Hong Kong-based maker of nutritional supplements for about HK$392 million ($50 million), according to terms of the transaction. The stock fell 8.4 percent to HK$5.56.
Sewco International Holdings Ltd. (209 HK): The toymaker will raise as much as a net HK$236 million through the private sale of 238 million shares at HK$1 each to replenish working capital and for any future investment opportunities. The stock, suspended yesterday, gained 6.9 percent to HK$1.09 on Aug. 23.
Sinotrans Ltd. (598 HK): The shipping and logistics company said first-half net income rose to 382.2 million yuan from 258.6 million yuan. The stock fell 0.5 percent to HK$1.92.
Zhaojin Mining Industry Co. (1818 HK): The gold producer said it resumed production at all of its mines in the Zhaoyuan region after they passed government examination and fulfilled the conditions for restarting work. The stock gained 0.4 percent to HK$18.84.
COMPANIES EXPECTED TO POST EARNINGS OR OTHER STATEMENTS:
EARNINGS: CHINA LIFE 2628 HK CHINA TELECOM 728 HK GCL-POLY ENERGY 3800 HK GEELY AUTO 175 HK AIR CHINA 753 HK CHINA COSCO 1919 HK CSCL 2866 HK SOHO CHINA 410 HK JIANGXI COPPER 358 HK SAIC MOTOR 600104 CH INDUSTRIAL BANK 601166 CH SHANDONG GOLD 600547 CH FAW CAR 000800 CH