Banks, China Shipping, CSR, Prosperity: 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 previous close.

The Hang Seng Index (HSI) lost 0.1 percent to 22,541.69. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, fell 0.1 percent to 12,587.66.

Chinese banks: Commercial banks are not allowed to roll over or renew loans to local financing vehicles, according to a statement posted on the China Banking Regulatory Commission’s website today. The regulator said banks are prohibited from moving their loans off their balance sheets through trust firms, wealth management services or bill financing, according to the statement. It also called on banks to increase loans to local governments for the construction of affordable housing.

Industrial & Commercial Bank of China (601398) Ltd. (1398 HK), the nation’s biggest lender by market value, lost 0.3 percent to HK$5.99. China Construction Bank Corp. (939) (939 HK), the second- largest, was unchanged at HK$6.36. Agricultural Bank of China Ltd. (601288) (1288 HK) added 0.2 percent to HK$4.19.

Convenience Retail Asia Ltd. (831 HK): The operator of convenience stores in Hong Kong and China, said first-half net income rose 35 percent from a year earlier to HK$78 million. The stock gained 1.2 percent to HK$4.10.

China AU Group Holdings Ltd. (8176) (8176 HK): The maker of personal care products said it agreed to sell 110 million shares at 15 Hong Kong cents each in a placement. China AU jumped 10 percent to 17.2 Hong Kong cents.

China Shipping Container Lines Co. (2866 HK): The nation’s second-largest container carrier by sales said it expects a net loss in the first half of the year because of higher oil prices and global weakness in the industry. China Shipping rose 0.9 percent to HK$2.33.

China Shipping Development Co. (1138 HK): The nation’s biggest operator of oil tankers by sales said it plans to raise 3.95 billion yuan selling bonds convertible into shares to help finance the purchase of 19 ships. The stock climbed 2.1 percent to HK$6.44.

CSR Corp. (1766 HK): China’s biggest train maker said it won orders to supply train carriages in China and overseas worth about 6.89 billion yuan. CSR slipped 1.2 percent to HK$5.83.

Prosperity International Holdings (H.K.) Ltd. (803 HK): The supplier of cement and other building materials said it exercised its option to purchase 4 million metric tons of iron ore from Blackrock Metals Inc.’s mining project in Chibougamau, Quebec. The company agreed to pay a deposit of $32 million. Prosperity rose 2 percent to 51 Hong Kong cents.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

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

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