China Stocks: Baoshan Steel, BYD, GF, Haitong Securities
Brokerages: GF Securities Co. (000776 CH), China’s second- biggest brokerage by market value, slumped 5.2 percent to 23.30 yuan, its biggest loss since Nov. 30. Haitong Securities Co. (600837 CH), the third largest, dropped 2.8 percent to 8.21 yuan. Founder Securities Co. (601901 CH) lost 3.6 percent to 4.26 yuan.
GF Securities said it reported a net loss of 89.9 million yuan ($14 million) for January while Haitong Securities said net income slumped 53 percent from year earlier to 120 million yuan last year. Founder Securities’ joint venture, Credit Suisse Founder, posted a net loss of 5.1 million yuan in January, the brokerage said in a statement.
Steelmakers: Baoshan Iron & Steel Co. (600019 CH), the listed unit of China’s second-biggest steelmaker, fell 1.8 percent to 4.99 yuan. Maanshan Iron & Steel (323) Co. (600808 CH) lost 1.9 percent to 2.57 yuan.
Chinese steelmakers’ earnings may have decreased more than 50 percent in 2011 as companies took charges on inventory impairment, according to Citic Securities Co. Iron ore prices dropped 5 percent from the previous quarter in the last three months of last year, Jiang Yujiao, an analyst at Citic Securities, writes in a report today.
BYD Co. (002594 CH), the automaker part-owned by Warren Buffett’s Berkshire Hathaway Inc., gained 3.3 percent to 24.81 yuan. Phillip Securities (HK) Ltd. raised its share-price estimate for BYD’s Hong Kong-listed shares to HK$25.20 from HK$11.30, citing “rapid growth expectations” for its new- energy vehicles, Zhang Jing, an analyst from the brokerage wrote in a report dated yesterday.
--Zhang Shidong. Editor: Richard Frost
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