HSI listings unchanged after quarterly review

The city's index compiler said on Friday that there will be no changes to the constituents of the benchmark blue-chip Hang Seng Index (HSI) after a quarterly review.

The total number of HSI constituent companies remains at 42, Hang Seng Indexes Company said in a statement.

However, mainland battery and electric car maker BYD Co

would be added to the Hang Seng China Enterprises Index (HSCE), the compiler said.

The stock has risen more than five-fold since September 2008, when billionaire Warren Buffet's Berkshire Hathaway made an investment in the company.

China South City aims for end-September HK IPO

Shenzhen-based China South City, an integrated logistics and trade centre operator, plans to raise at least HK$4 billion ($513 million) in a revived plan for its Hong Kong IPO by the end of September, according to a source familiar with the deal.

China South City had obtained approval from the Hong Kong stock exchange for its IPO plan and the company aimed to launch an investors' road show at the beginning of September and list in Hong Kong by the end of the month, said the source, who preferred ananimity.

Last year, China South City had planned to raise $300 million-$500 million through a Hong Kong IPO, but later delayed the plan after the global downturn cooled investor appetite for new offerings.

Merrill Lynch is the sole sponsor of the deal and BOC International, the investment banking arm of Bank of China, is joining as bookrunner.

Fitch affirms CNOOC Ltd at 'A'; outlook stable

Fitch Ratings on Friday affirmed CNOOC Limited's

(CNL) Long-term foreign and local currency Issuer Default Ratings at "A", short-term foreign and local currency IDRs at "F1", and its senior unsecured ratings at "A". The Outlook is "Stable".

CNL's ratings are underpinned by its solid business profile as the dominant oil and gas exploration and production company in the country's offshore drilling market, as well as its strong financial profile, said Ying Wang, director in Fitch's Asia Pacific Energy & Utilities team.

However, Wang added, CNL's ratings are partially constrained by its relatively small proved reserve base, an upstream-focused business portfolio which is sensitive to oil and gas prices and significant expected investment over the next few years.

HK$ eases on concerns over mainland tightening

The Hong Kong dollar eased slightly against the US dollar in late trade on Friday amid a moderate bid tone on commercial demand, while the short-term interbank rates firmed.

The local currency moved slightly lower as funds flowed out of Hong Kong on concerns about the fallout from possible tightening of market liquidity by the government on the mainland, as well as the supply of additional shares from recent initial public offerings, dealers said.

Part of the money flowed back to Europe, where economies have shown faint signs of life based on fresh data released on Thursday.

The short-term interbank rates rose on the funds outflow, pushing the one-month rate up to 0.02/0.08.

Ex-Fund foreign assets HK$1,584.6b at end-July

Foreign assets in Hong Kong's Exchange Fund stood at HK$1,584.6 billion ($203.2 billion) at the end of July 2009, up HK$88.6 billion from the end of June 2009, the Hong Kong Monetary Authority said on Friday.

The Exchange Fund backs the local currency, which has been pegged to the US dollar since 1983.

Reuters

(HK Edition 08/15/2009 page2)