China Telecom, Jiangxi Copper, Zijin: 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 Sept. 2.

The Hang Seng Index (HSI) fell 1.8 percent to 20,212.91. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, dropped 2.4 percent to 10,664.45.

Mining companies: A measure of primary metals traded in London slipped 1 percent for a second straight daily loss after a U.S. government report showed employment stagnated last month.

Jiangxi Copper Co. (358 HK), China’s No. 1 producer of the metal, lost 3.9 percent to HK$21.95. Aluminum Corp. of China Ltd. (2600 HK), the listed unit of nation’s biggest maker of the lightweight metal, slumped 4.9 percent to HK$5.10.

Oil stocks: Crude for October delivery fell 2.8 percent on the New York Mercantile Exchange.

PetroChina Co. (857 HK), the nation’s largest oil company, sank 3.5 percent to HK$9.67.

Cnooc Ltd. (883) (883 HK) lost 3.3 percent to HK$15.44. China’s biggest offshore oil explorer yesterday said a production halt at the entire Penglai 19-3 oil field in China will further reduce its net production by about 40,000 barrels per day.

Gold producers: Gold futures for December delivery gained 2.6 percent on the Comex in New York.

Zijin Mining Group Co. (2899 HK), China’s largest gold producer by market value, fell 1.1 percent to HK$3.56.

Hong Kong developers: The number of housing transactions in Hong Kong declined for the eighth straight month as land supply increases and global economic growth slows. The number of deals fell 63 percent in August from a year earlier to 5,439, the biggest decrease since February 2009, according to Land Registry data. The value of the transactions dropped 54 percent to HK$31.8 billion ($4.1 billion).

Henderson Land Development Co. (12 HK), the builder controlled by billionaire Lee Shau-kee, slid 1.2 percent to HK$44.95. Rival Sun Hung Kai Properties Ltd. (16) (16 HK) sank 2.1 percent to HK$107.20.

Hong Kong-listed Chinese companies: Societe Generale raised its rating on Chinese companies listed in Hong Kong to “overweight” on speculation the nation will stop tightening monetary policy. The brokerage had told investors to “underweight” the stocks, which have been open to foreign investors, since January.

ZTE Corp. (000063) (763 HK), China’s a mobile-phone-equipment maker, slumped 6.2 percent to HK$21.15 and China Coal Energy Co. (1898 HK), a mainland coal producer, dropped 3.6 percent to A$9.97. Both stocks are included in the Hang Seng China Enterprises Index. Separately, the Government of Singapore Investment Corp. bought 2.15 million shares of China Coal at an average HK$10.281 on Aug. 29, according to a disclosure statement.

China Telecom Corp. (728 HK): The nation’s biggest fixed- line phone carrier is in talks with U.K. carriers to lease network capacity for selling mobile services in the country, people with knowledge of the matter said.

The Beijing-based carrier aims to agree on a contract to allow services to start in time for the London Olympics next year, one of the people said, asking not to be identified because the discussions are private. The company’s shares fell 1.2 percent to A$5.06.

Zhongda International Holdings Ltd. (909) (909 HK): The Chinese manufacturer of automobile equipment suspended the duties of two executive directors because they didn’t make a fund transfer of 150 million yuan for the company, according to a statement to the Hong Kong stock exchange. The suspension won’t have an “adverse effect” to the company’s operation, it said. The stock fell 4.5 percent to 42.5 Hong Kong cents.

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.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.