HSBC eyes Taiwan market

HSBC, Europe's biggest bank, will continue to invest to expand its Taiwan operations despite the global financial crisis, an executive of the bank's Taiwan business said yesterday.

HSBC is also expecting its Taiwan business this year to be better than last year, according to Nicholas G Winsor, president and chief executive of HSBC Taiwan, who spoke to reporters on the sidelines of a business event.

He said the company's profits in the first half of 2008 were up sharply from the same period a year earlier.

Alum Corp profits 'down'

Aluminum Corp of China warned yesterday that its third quarter net profits will slide by more than 50 percent due to rising raw material and fuel costs, and falling aluminum prices.

The world's third-largest producer of aluminum said it had reduced spot alumina prices by 9.4 percent as of Oct 1. It was the third reduction since June.

The firm offered spot alumina at 2,900 yuan a ton from last Wednesday, the company said in a posting on its website updated yesterday.

It reduced spot alumina prices by 16.7 percent to 3,500 yuan in June and by 8.6 percent to 3,200 yuan in August due to increased supply of the raw material for the production of aluminum.

Property sector 'neutral'

Brokerage DBS Vickers has downgraded the local property sector from "positive" to "neutral", saying property prices will drop 10 to 15 percent in the next 12 months.

The firm cut the target prices of Hong Kong property stocks by 13 to 42 percent and trimmed their earnings per share by 8 to 47 percent.

It lowered the ratings for Sun Hung Kai Properties and New World Development from "buy" to "hold", giving them a target price of HK$83.80 and HK$9.40, respectively.

But it gave a "buy" rating to Cheung Kong Holdings, Hang Lung Properties and Sino Land, with target prices of HK$107.95, HK$20.15, and HK$10.64.

Renhe IPO interest low

Renhe Commercial, a Shenzhen-based underground shopping mall developer, failed to attract any margin finance subscribers until yesterday, two brokers have said.

The company, which will close its initial public offering (IPO) book at noon tomorrow, cannot win investors' hearts amid the bearish market, sources from CASH Asset and Phillip Securities said.

The firm hoped to raise as much as HK$5.1 billion by issuing 3 billion shares at a range between HK$1.40 and HK$1.70. It is scheduled to list on Oct 15.

China Daily - Reuters

(HK Edition 10/07/2008 page2)