Air China, Cnooc, PCCW, PetroChina: Hong Kong Stocks Preview

The following companies may have significant price changes in Hong Kong trading. Stock symbols are in parentheses. Share prices are as of the last close on June 3.

The Hang Seng Index (HSI), which was closed yesterday, fell 1.3 percent to 22,949.56. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, declined 1.7 percent to 12,750.66.

Oil companies: Crude for July delivery sank 1.2 percent to $99.01 a barrel on the New York Mercantile Exchange yesterday. Cnooc Ltd. (883) (883 HK), China’s largest offshore energy producer, fell 1 percent to HK$18.78. PetroChina Co. (857 HK), Asia’s largest company by market value, lost 1.6 percent to HK$10.86. China Petroleum and Chemical Corp. (386 HK), the country’s biggest refiner, known as Sinopec, declined 0.9 percent to HK$7.67.

Air China Ltd. (601111) (753 HK): The nation’s biggest international carrier expects the opening of a bullet-train line from Beijing to Shanghai to have a “minimal” effect on its operations, Senior Vice President Zhao Xiaohang said in Singapore. High- speed trains have greater impact on shorter routes, Zhao said. Air China is based in Beijing.

Separately, Air China plans to import 36 new planes this year, including five to serve its international routes, Lou Yongfeng, a general manager of the company’s international cooperation department, told China Business News. The stock fell 2 percent to HK$7.70.

Chaoda Modern Agriculture Holdings Ltd. (682) (682 HK): The Chinese producer of fruit and vegetables said it told law firm DLA Piper Hong Kong to take unspecified legal action in connection with a May 26 article in Next magazine. Next Magazine said the company exaggerated the amount of land it controls. The stock tumbled 9.8 percent to HK$3.49.

China Citic Bank Corp. (998 HK): China Citic Bank’s rights offer plan will be reviewed by the China Securities Regulatory Commission tomorrow, according to a statement posted on the regulator’s website. China Citic Bank is the banking unit of the nation’s largest investment firm. The stock sank 1.7 percent to HK$5.30.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. (1938) (1938 HK): The Chinese pipe maker said profit for the six months ending June 30 is likely to increase significantly due to a rebound in orders in Columbia and Peru and a China project. The stock declined 1.1 percent to HK$3.57.

Little Sheep Group Ltd. (968) (968 HK): China’s commerce ministry is currently reviewing an application regarding Yum! Brands Inc.’s agreement to acquire Little Sheep Group, Sina.com reported, citing an unidentified person at the ministry. Little Sheep Group, a restaurant operator, was unchanged at HK$6.20.

PCCW Ltd. (8) (8 HK): Hong Kong’s biggest phone company plans to raise about $1.3 billion by listing its telecommunications operations as a business trust, the Hong Kong Economic Journal reported, citing unidentified people. PCCW spokeswoman Anita Choi declined to comment when contacted by telephone. PCCW shares gained 4.4 percent to HK$3.10.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.

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

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