HK Feb inflation up 6.3%

Hong Kong's consumer price index in February rose 6.3 percent from a year earlier, its highest level in more than 10 years and well above expectations, driven by surging food prices and housing rents.

A Reuters survey had forecast February inflation of 4.7 percent.

Netting out temporary factors that distorted the data, underlying February inflation stood at 5.1 percent, up from 4.3 percent in January, the government said.

"Even taking out one-off factors, upward momentum in inflation is quite strong. This momentum will continue. Food prices and consumer goods prices are rising as we are seeing imported inflation because of appreciation of the yuan and depreciation of the US dollar," said Daniel Chan, senior investment strategist at DBS Bank (HK).

Domestic exports fall 1.1%

The volume of Hong Kong's domestic exports in January 2008 fell by 1.1 percent from a year earlier, while re-exports increased by 16.1 percent, the Census and Statistics Department said yesterday.

The total volume of the territory's exports, including re-exports through the mainland, rose 15.4 percent while total imports climbed 16.9 percent from a year ago, the department said in a statement.

The volume of domestic exports for the three months ending January 2008 increased by 0.4 percent from a year earlier while that of re-exports rose by 9.1 percent. Total exports increased 8.7 percent and imports increased by 12 percent.

Prices of domestic exports meanwhile increased by 2.8 percent in January 2008 from a year earlier and re-export prices increased by 2.6 percent. Total export prices were up 2.6 percent and import prices also increased by 3.5 percent, the data showed.

China Overseas net profits

China Overseas Land & Investment Ltd expects net profits to climb 20 percent in 2008 as the country's number-three real estate developer spends $4.5 billion to expand its land bank by about a quarter.

Chairman Kong Qingping told reporters yesterday that the firm will forge ahead with a number of projects even as Beijing tightens its grip on investments and lending nationwide to try curtail a red-hot property sector.

The third-largest of several listed, mainland-focused developers this year - including Country Garden and Vanke - expects to increase its land reserves by 4.5 million sq m to 23 million sq m, Kong said.

China Overseas, which posted a better-than-expected net profits rise of 76 percent to HK$4.18 billion in 2007, has been aggressively expanding its residential property portfolio.

Reuters

(HK Edition 03/21/2008 page2)