China Life rises in Hong Kong after profit jumps

China Life Insurance Co, the nation's biggest insurer, rose in Hong Kong trading after third-quarter profit almost tripled on increases in investment returns from the stock market yesterday.

The stock climbed 0.5 percent to HK$37.95, extending this year's gain to 61 percent. The benchmark Hang Seng Index slipped 1.9 percent.

China Life's net income in the three months to September 30 climbed to 5.95 billion yuan ($871 million) from 2.34 billion yuan a year earlier, the Beijing-based company said yesterday after the market closed.

Property firm Yuzhou prices HK IPO at bottom

Mainland property developer Yuzhou Properties Co Ltd priced its Hong Kong initial public offering at the bottom of an indicated range, a source familiar with the deal said yesterday, to raise $208 million amid a flood of real estate IPOs.

The Fujian-based property developer, which focuses on the residential market and has a diversified investment property portfolio, sold 600 million shares, or 25 percent of its enlarged share capital, at HK$2.70 each, compared with a range of HK$2.70 to HK$3.70, the source said. Yuzhou's trading debut is set for November 2 under the symbol "1628". Morgan Stanley is sponsoring the deal.

The retail portion of the offering was three times over-subscribed, according to another source familiar with the deal.

HK Sept mortgage loan approvals up 130 pct yr/yr

New mortgage loans approved in Hong Kong in September rose 129.7 percent from a year earlier, but were down 2.5 percent from August, figures from the Hong Kong Monetary Authority (HKMA) showed. New loans approved in September totalled HK$33.3 billion ($4.27 billion), compared with HK$34.2 billion in the previous month, the HKMA said.

The decline was mainly due to reductions of HK$1.2 billion or 24.6 percent in primary market transactions and of HK$0.8 billion or 3.4 percent in approvals for secondary market transactions, the HKMA added.

HKMA sells HK$4.263b to keep HK$ in trading band

Hong Kong's de facto central bank, the Hong Kong Monetary Authority, yesterday afternoon injected HK$4.263 billion (US$550 million) into the money market to stem an appreciating Hong Kong dollar and keep it within its fixed trading band. The Hong Kong dollar hit the top of its trading band at 7.7500 yesterday as money continued to flow into Hong Kong assets, dealers said. Expectations that China's yuan will appreciate are further encouraging investors to put money in Hong Kong, they said.

According to Reuter's data, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the HKMA - to HK$244.515 billion by October 29.

Increasing coal demand and prices lift Shenhua

China Shenhua, the world's most valuable coal producer, said its quarterly profit rose 12 percent after it shipped out more coal and sold it at higher prices, thanks to strong demand from power producers.

Shenhua, China's top coal miner, said its July-September net profit was 8.7 billion yuan based on domestic accounting standards, up from 7.8 billion yuan a year earlier but below a forecast by Sun Hung Kai Financial of 9.83 billion.

Across the sector, analysts prefer Shenhua because of its exposure to contract sales and because it operates its own railway network to transport coal, giving it higher earnings visibility and room to control its costs compared to its rivals.

China Daily/Agencies

(HK Edition 10/28/2009 page4)