Stock Exchange Committee to review Rusal IPO on Dec 7

Hong Kong's stock exchange will hold a special meeting on December 7 to consider United Co Rusal's initial public offering of as much as $3 billion, said three people familiar with the matter.

Rusal and its bankers had sought to have the application reviewed yesterday at a weekly meeting of the exchange's listing committee, said the people who declined to be identified as the information is private. The Rusal application was delayed to December 7 after some committee members indicated they couldn't attend the hearing, said two of the people. The review delay cuts the time for Rusal to sell a 10 percent stake in Hong Kong by the end of the year to help repay debt.

Lorraine Chan, a spokeswoman for Hong Kong Exchanges and Clearing Ltd, declined to comment, citing the confidential nature of the listing committee meetings and their schedule. Vera Kurochkina, a spokeswoman for Rusal, declined to comment.

Stocks advance after Fed says US economy improving

Hong Kong stocks gained for a fourth day, giving the Hang Seng Index its longest winning streak in three weeks, after the Federal Reserve said the US economy is improving, adding to optimism Asia's exports will increase.

Li & Fung Ltd, the biggest supplier of clothes and toys to Wal-Mart Stores Inc and Target Corp, advanced 5.7 percent. Henderson Land Development Co, Hong Kong's No 3 developer, rose 6 percent as home sales in the city increased last month and its chairman said housing prices will rise next year. China Forestry Holdings Co added 0.5 percent on its first trading day.

The Hang Seng Index rose 1.2 percent to close at 22,553.87. The Hang Seng China Enterprises Index, which tracks so-called H-shares of mainland companies listed in Hong Kong, gained 0.9 percent to 13,459.06.

Brilliance shareholder selling up to $121m shares

Brilliance China Automotive's shareholder is selling up to $121 million worth of shares, a term sheet obtained by Reuters showed yesterday. Huachen Automotive Group, a shareholder of Brilliance, is selling 400 million secondary shares at HK$2.20 to HK$2.35 per share, representing a 3.3 percent to 9.5 percent discount to the closing price of HK$2.43 yesterday. There is an upside option of selling 100 million shares, or up to $30 million. JP Morgan is handling the share sale.

City November PMI hits highest level in two years

Data from the HSBC Hong Kong Purchasing Managers' Index for November shows that business activity rose in November for a fourth straight month as the PMI hit 55.9, up from 54.6 in October and its highest reading since November 2007. The PMI adds to recent economic data showing Hong Kong's economy is picking up after pulling out of recession in the second quarter. New orders rose for a fourth straight month and at a much faster pace than in October, driven by a surge in orders from the mainland. Companies stepped up hiring from October, although headcount additions were modest. Staff costs rose for a fourth month but by a small margin. Companies' costs (input prices) rose for a fifth month and more sharply than in October due to rising raw material costs. However, for the first time in 14 months firms stopped cutting the prices they charged, although strong competition limited price rises. The data is collected by UK-based Markit Group Ltd, and the report is now sponsored by HSBC.

China Daily/Agencies

(HK Edition 12/04/2009 page12)