China Resources, Li & Fung, Sinopec: Hong Kong Stock Preview

The following companies may have significant price changes in Hong Kong trading. Stock symbols are in parentheses. Share prices are as of the close on July 22.

The Hang Seng Index (HSI) climbed 2.1 percent to 22,444.80. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, rose 2.2 percent to 12,598.77.

Banks & exporters: Banks and exporters may drop as failure to raise the U.S. federal debt limit intensified concern of a default that may derail a global economic recovery.

House Speaker John Boehner told Republicans there’s no agreement on a plan for raising the ceiling before a default threatened for Aug. 2. The impasse has boosted the chance Standard & Poor’s Ratings Agency will cut the U.S. credit rating from AAA within three months to 50 percent, the company said July 21.

Li & Fung Ltd. (494) (494 HK), the largest supplier of toys and clothes to Target Corp. and Wal-Mart Stores Inc., jumped 5.5 percent to HK$14.20. Esprit Holdings (330 HK), a clothier that gets more than 85 percent of its revenue outside Asia, rose 5.2 percent to HK$24.15.

Jiangxi Copper Co. (358 HK), China’s biggest producer of the metal, gained 1.7 percent to HK$27.40. HSBC Holdings Plc (HSBA) (5 HK), Europe’s biggest bank by market value, climbed 2.8 percent to HK$78.

Rail companies: A bullet train crash in China over the weekend left at least 43 people dead. The accident, Wenzhou city, pushed four coaches off a viaduct and also injured more than 200 people, the state-run Xinhua News Agency said, citing investigators. China Railway Construction Corp. (1186 HK), the builder of more than half the nation’s rail links since 1949, rose 2.8 percent to HK$5.85. China Railway Group Ltd. (601390) (390 HK) gained 2.8 percent to HK$3.27.

Oil stocks: Crude for September delivery fell as much as 0.9 percent in electronic trading on the New York Mercantile Exchange.

PetroChina Co. (857 HK), the nation’s largest oil company, gained 1.4 percent to HK$11.68. Cnooc Ltd. (883) (883 HK) added 2.7 percent to HK$17.32.

China Petroleum & Chemical Corp (600028) (386 HK): Eni SpA (ENI), Italy’s biggest oil company, confirmed an Ansa newswire report that it has signed a memorandum of understanding with Asia’s largest oil refiner, also known as Sinopec.

The Rome-based company is interested in shale gas opportunities in China, while Sinopec is seeking to grow in areas like Africa with Eni’s help, Chief Executive Officer Paolo Scaroni told Ansa in an interview in Beijing. Sinopec rose 2.2 percent to HK$7.79.

China Precious Metal Resources Holdings Co. (1194 HK): The mining company signed a letter of intent to buy a gold mine in Yunnan province for as much as 2 billion yuan ($310 million), according to a company statement to Hong Kong’s stock exchange on July 22. The shares were unchanged at HK$1.62.

China Resources Gas Group Ltd. (1193) (1193 HK): The Hong Kong- listed fuel operator expanding in the mainland said it will buy a natural gas distributor from parent China Resources Holdings Ltd. for HK$1.71 billion ($219 million) in new shares. China Resources Gas advanced 2.1 percent to HK$11.54.

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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