Related News:
China Day Ahead: U.S. Tightens Trade Rules, PetroChina Plans Acquisitions
The Obama administration plans to step up enforcement of trade laws against nations, such as China and Vietnam, that help subsidize companies exporting cheap goods to the U.S.
The U.S. Commerce Department developed 14 proposals to crack down on illegal import practices and require parties to pay the full amount of any duties. The process to adopt the plan, which the department said is especially aimed at countries where the government has control over markets, will begin later this year.
“Generally, this is targeted at China, and China will see it as such,” said David Spooner, a former Commerce Department official in the Bush administration and now a trade lawyer with Squire Sanders in Washington. “The aim is to raise the price of goods from China.”
The plan is part of the administration’s effort to double exports in the next five years to spur job growth, a goal President Barack Obama set in his State of the Union speech in January. Doubling exports would help support 2 million new jobs, the administration said.
PetroChina Acquisitions
PetroChina Co., Asia’s biggest company by market value, pledged to step up acquisitions and boost cooperation with global oil companies after profit growth slowed to 4 percent because of state controls on fuel prices at home.
“PetroChina will continue to expand globally,” President Zhou Jiping said at an earnings briefing in Hong Kong yesterday. “We will boost profitability at existing projects and seek new opportunities around existing ventures in Central Asia, the Middle East, Africa, the Americas and the Asia-Pacific.”
The oil producer and refiner plans to spend at least $60 billion in the next decade on overseas takeovers after paying about $6.2 billion in the past year for refineries and reserves from Australia to Canada.
China Resources Acquisitions
China Resources Enterprise Ltd., the Chinese partner of SABMiller Plc, may spend as much as HK$5.5 billion ($700 million) on acquisitions by the end of the year after first-half profit more than tripled.
“We have negotiations at the moment in all four sectors” of retail, beer, non-alcoholic beverages and food, Chief Financial Officer Frank Lai said in Hong Kong yesterday. He declined to name specific targets.
Henderson Earnings Drop
Henderson Land Development Co., the Hong Kong builder controlled by billionaire Lee Shau-kee, reported a larger-than- estimated decline in first-half underlying profit after taking a HK$734 million ($94 million) charge for the failed sales of 20 luxury apartments.
Profit excluding revaluation gains declined 37 percent to HK$1.32 billion from HK$2.11 billion a year earlier, the company said in a stock exchange statement yesterday. Analysts surveyed by Bloomberg News predicted a profit of HK$1.52 billion, according to the median of five estimates.
Lead-Demand Growth Weakens
Lead demand growth in China, the world’s largest consumer, may be weaker than expected this year as the economy cools and slowing auto sales cut demand for the metal used in batteries, a state-affiliated researcher said.
Consumption increased by 6.8 percent in the first half of this year to 1.78 million metric tons, compared with 16.5 percent growth in 2009, Hu Yongda, an analyst at Beijing Antaike Information Development Co., said in a phone interview.
Cosco Cautions on Capacity
China Cosco Holdings Co., Asia’s largest shipping company by market value, said lines needs to stay “level-headed” to prevent a capacity glut from overwhelming a rebound in cargo demand.
“We call upon chief executive officers to remain level- headed to help ensure stable growth,” Executive Vice President Sun Jiakang said yesterday. “The global economy is recovering, but it’s a process that can take years.”
Wages to Support Growth
China’s rising wages and demand will help prevent a sharp fall in home prices and economic growth, according to Citic Bank International Ltd.
“The continuing rapid growth in personal income is the basic guarantee for the property price bubble to be absorbed gradually,” Liao Qun, chief economist at Citic Bank, told reporters in Hong Kong yesterday. “A soft landing for the property market is both necessary and likely.”
Taiwan China Rules
Taiwan’s financial companies and banks can invest in only one financial leasing firm in China, and must take at least a 25 percent stake, the island’s Financial Supervisory Commission said in a statement on its web site.
China Potash Prices
China will agree to pay 14 percent more for potash in talks with global producers, benefiting companies including Russia’s OAO Uralkali, VTB Capital said.
“China contracts, to be concluded in December-February, will add at least $50 to last year’s contracts to sign at $400 a metric ton and set a base for price revisions elsewhere,” Elena Sakhnova, a VTB analyst in Moscow, wrote in a report.
MARKETS:
U.S. stocks fell, sending the Dow Jones Industrial Average below 10,000 for the first time in seven weeks, as concern about Spain’s fiscal stability and a slowdown in manufacturing wiped out early gains triggered by a drop in jobless claims.
Guess? Inc. retreated 11 percent after its forecast trailed analyst estimates. Cisco Systems Inc. and International Business Machines Corp. lost the most in the Dow as 28 of the gauge’s 30 companies retreated after a court ruled Spain’s method of auditing sales tax was illegal and the Federal Reserve Bank of Kansas City said manufacturing growth stalled in the region.
The Standard & Poor’s 500 Index fell 0.8 percent to 1,047.22 as of 4 p.m. in New York. The Dow lost 74.25 points, or 0.7 percent, to 9,985.81. It was the lowest close since July 6 for both gauges. Decliners outnumbered advancers by more than two to one on U.S. exchanges.
STOCKS THAT MAY BE ACTIVE TODAY:
Bank of China Ltd. (601988 CH): The nation’s third-largest lender by market value said first-half profit gained 27 percent, aided by rising demand for loans and an improvement in asset quality. The shares added 0.6 percent to 3.40 yuan.
Brilliance China Automotive Holdings Ltd. (1114 HK): The maker of vehicles with Bayerische Motoren Werke AG and Toyota Motor Corp. turned to a first-half profit, or 509.5 million yuan, as economic growth spurred demand for luxury sedans in the world’s biggest auto market. The stock gained 2 percent to HK$3.08.
China Oilfield Services Ltd. (2883 HK): The unit of the country’s largest offshore oil producer more than doubled first- half profit to 2.2 billion yuan as its biggest customer, Cnooc Ltd., expanded exploration. The stock fell 3.3 percent to HK$9.65.
China Power New Energy Development Co. (735 HK): The alternative-energy generator is seeking to raise production capacity sixfold over the next five years, the South China Morning Post reported, citing Chairman Li Xiaolin. The stock fell 2.4 percent to 81 Hong Kong cents.
China Unicom (Hong Kong) Ltd. (762 HK): The phone-services provider posted a steeper-than-estimated 54 percent drop in profit after the country’s only carrier selling Apple Inc.’s iPhone offered more handset discounts and boosted marketing spending. The stock fell 2.1 percent to HK$10.34.
Greentown China Holdings Ltd. (3900 HK): The chairman of the real estate developer is seeking to raise $21 million from selling shares in the Hong Kong-based company, according to a term sheet for the sale obtained by Bloomberg News. The stock fell 1.6 percent to HK$8.70.
FAW Car Co. (000800 CH): The state-owned automaker will invest 1.79 billion yuan ($263 million) in a plant with the annual capacity to turn out 30,000 of the company’s Red Flag luxury autos, the South China Morning Post said, citing the company. The stock gained 0.7 percent to 16.29 yuan.
Guangzhou Shipyard International Co. (317 HK): The shipbuilder’s first-half net income rose to 341.3 million yuan from 241.8 million yuan. The stock gained 0.8 percent to HK$12.72.
Hebei Iron & Steel Co. (000709 CH): The listed unit of China’s biggest steelmaker, said first-half profit surged more than 10-fold to 719.6 million yuan after acquisitions boosted production. The stock was unchanged at 3.95 yuan.
Huadian Power International Corp. (1071 HK): The Chinese power producer said first-half net income fell to 25.8 million yuan from 544.8 million yuan. The stock gained 0.5 percent to HK$1.88.
Industrial & Commercial Bank of China Ltd. (601398 CH): The world’s largest lender by market value posted a 38 percent gain in second-quarter profit as margins widened and demand for loans and fee-based services increased. The shares rose 1 percent to 4.12 yuan.
Kunlun Energy Co. (135 HK): The PetroChina Co. (857 HK) unit will form an energy venture with China Gas Industries (Shenzhen) Ltd. and Hebei Bohai Investment Co. to supply natural gas in the Bohai region. Kunlun will hold 51 percent of the venture. The stock fell 1.3 percent to HK$9.76.
New Island Printing Holdings Ltd. (377 HK): The printing company said Paul Suen, chairman of two Hong Kong-listed companies, will pay $354.8 million for a 74.1 percent stake and offer HK$2.15 each for all outstanding shares. The stock, halted since Aug. 20, will resume trading in Hong Kong today.
Oriental Ginza Holdings Ltd. (996 HK): The property manager agreed to pay HK$225 million for a company that owns 21 retail, office and residential properties in Shenyang, generating 4.94 million yuan in rent annually. The stock fell. 2.7 percent to HK$1.42.
PetroChina Co. (601857 CH): The nation’s biggest oil company said first-half profit climbed 29 percent from a year earlier to 65.3 billion yuan, as government controls on gasoline and diesel tariffs curbed gains from higher crude oil prices. That trailed the 68.7 billion yuan median estimate of nine analysts surveyed by Bloomberg. The shares added 0.1 percent to 10.24 yuan.
Qingdao Haier Co. (600690 CH): China’s largest appliance maker said its first-half net income rose 51.8 percent from a year ago. The shares climbed 2.5 percent to 22.79 yuan.
Sands China Ltd. (1928 HK): The Macau casino operator’s first-half net income rose to $250.5 million from $58.3 million. The company added $100 million to the budget for its new resort on Macau’s Cotai Strip, and said the first phase of the project will open in the fourth quarter of 2011, with the second phase opening six months later. The stock gained 3.2 percent to HK$12.28.
Shanxi Taigang Stainless Steel Co. (000825 CH): China’s biggest producer of the rust-proof metal swung to first-half net income of 810 million yuan from a net loss of 681 million yuan, after demand recovered for building construction. The stock gained 0.7 percent to 5.79 yuan.
TPV Technology Ltd. (903 HK): The computer monitor maker said first-half net income rose to $80.3 million from $54.7 million. The stock gained 0.7 percent to HK$4.61.
Xinao Gas Holdings Ltd. (2688 HK): The piped-gas distributor in China said first-half net income rose to 533.3 million yuan from 374.2 million yuan. The stock fell 0.6 percent to HK$18.68.
COMPANIES SCHEDULED TO PUBLISH EARNINGS OR OTHER NEWS: CHINA SHENHUA 1088 HK CITIC RESOURCES 1205 HK AGRICULTURAL BANK 1288 HK SMIC 981 HK SINOTRUK 3808 HK DONGFENG GROUP 489 HK CHINA EASTERN 670 HK CHINA PACIFIC 2601 HK CHINA SHENHUA 601088 CH BANK OF NINGBO 002142 CH MINMETALS 600058 CH CITIC SECURITIES 600030 CH BAOSTEEL 600019 CH BLOOMBERG TELEVISION INTERVIEWS 8:10 Takuji Okubo, Societe Generale Chief Japan Economist 8:40 Kenny Tang, Redford Asset Management, Executive Director 9:10 David Wyss, Standard & Poor’s, Global Chief Economist 9:40 Tim Savage, Nautilus Institute, Deputy Director
To contact the reporter on this story: Joshua Fellman in New York at jfellman@bloomberg.net.
Rate These Stories
Rate this Page