China Shipping, PCCW, Regent: Hong Kong Stock Preview

(Corrects China Shipping item to say second-largest sea-cargo group.)

The following companies may have significant price changes. Stock symbols are in parentheses. Share prices are as of the last close.

The Hang Seng Index lost 0.1 percent to 23,788.83. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, dropped 0.3 percent to 12,562.05.

Banks: Chinese banks had a non-performing loan ratio of 1.14 percent at the end of 2010, the China Banking Regulatory Commission said. Outstanding non-performing loans as of the end of last year were 429.3 billion yuan ($65.2 billion), while the loan provision ratio was 218.3 percent, according to the regulator.

Some commercial banks in China have raised their lending rates by as much as 45 percent over the benchmark rate because of a shortage of funds, the China Securities Journal said, citing an unidentified bank official. Banks have extended large amounts of loans in January, leaving them short of funds, the newspaper reported, without identifying which banks had increased their rates.

Bank lending in China this month totaled 1.2 trillion yuan as of Jan. 24, China Business News reported, citing an unidentified person.

Industrial and Commercial Bank of China Ltd. (1398 HK), the world’s biggest lender by market value, dropped 0.2 percent to HK$5.86. China Construction Bank Corp. (939 HK), the nation’s No. 2 lender by market value, declined 0.4 percent to HK$6.89.

China Shipping Development Co. (1138 HK): The unit of China’s second-largest sea-cargo group said it expects 2010 profit to rise by about 60 percent from 1.06 billion yuan a year earlier. Its shares dropped 0.9 percent to HK$9.89.

Datang International Power Generation Co. (991 HK): The electricity producer said its 2010 net income may rise more than 50 percent. The stock climbed 0.4 percent to HK$2.74.

Huadian Power International Corp. (1071 HK): The electricity producer said it plans to acquire a stake in six heat supply companies from Shijiazhuang Energy Investment Development Centre. The stock rose 0.6 percent to HK$1.60.

PCCW Ltd. (8 HK): The company and Telstra Corp. agreed to reorganize their Reach Ltd. unit, according to a statement. The reorganization will be completed in the first half of this year and will not affect PCCW’s 2010 earnings, the statement said. PCCW, Hong Kong’s biggest phone company, gained 0.3 percent to HK$3.41.

Regent Pacific Group Ltd. (575 HK): The Hong Kong-based investment holding company said the Foreign Investment Review Board of Australia has no objection to its bid for BC Iron Ltd. Regent Pacific slid 1.3 percent to 38 Hong Kong cents.

Sinopharm Group Co. (1099 HK): The company entered a framework agreement with LRT Pharmaceutical Group, under which LRT will transfer its distribution business and the equity interest in its four units to LRT Pharmaceutical Logistics, which will be renamed Sinopharm LRT, according to a statement. Sinopharm will acquire a 60 percent interest in the renamed company and will inject 60 million yuan into the project, it said. Sinopharm, a pharmacy distribution company, advanced 0.9 percent to HK$27.40.

Tencent Holdings Ltd. (700 HK): Tencent said it has set up a 5 billion yuan fund to invest in technology firms as China’s biggest Internet company seeks to offer a wider range of services to its users. The stock climbed 4.7 percent to HK$199.10.

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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