BEA sells HK$5 billion new shares

Bank of East Asia (BEA) announced through the Stock Exchange that it will sell HK$5.11 billion ($659 million) in new shares, raising proceeds to strengthen its capital position to support business development initiatives.

Japan's Sumitomo Mitsui Banking Corp will buy 46.267 million shares, raising its stake in BEA to 4.05 percent from 1.91 percent.

BEA said it will sell 167.1 million shares at HK$30.60 each. The issue price represents a 2.12 percent discount to yesterday's closing price of HK$31.25.

As part of the deal, Negocio de Finanzas e Inversiones I, SLU, a unit of Spain's Criteria, will buy 120.837 million shares, raising its stake in the bank to 14.99 percent after the deal, from 9.81 percent.

HK shares recovered from losses to close flat

Hong Kong shares trimmed losses yesterday as utilities and China Mobile bucked the weak tone.

The benchmark Hang Seng Index erased most of its early losses to end down 0.01 percent or 2.82 points at 21,496.62. The China Enterprises Index of top locally listed mainland stocks eased 0.9 percent to 12,530.77.

Utilities bucked the weak tone as investors parked their funds in the defensive sector. China Resources Power

climbed 1.88 percent to end at a four-week high of HK$15.20. CLP Holdings gained 0.19 percent and Hongkong Electric was up 0.24 percent. China Mobile rose 1.01 percent to end at HK$70.35, a near two-week high. The company said it was moving ahead on schedule with a plan to list in Shanghai, after media reports said an investigation into one of its top executives could lead to a delay.

Business advisory members announced

The government announced yesterday Financial Secretary John Tsang has appointed eight new non-official members to the Business Facilitation Advisory Committee, while Anthony Nightingale and Emily Lau will remain chairman and deputy chairman.

The new appointees are Benjamin Cha, Andrew Fung, Alan Lo, Poman Lo, Anthony Lock, Bryant Lu, Patrick Wong and Douglas Young. Their term will end December 31, 2011.

The outgoing non-official members are Florence Chan, Oscar Chow, Aron Harilela, Jack Maisano, Stephen Yip and Allan Zeman.

Jiangxi Copper hits 800,000t output goal

Jiangxi Copper Co Ltd <0358.HK>, the top producer of the metal on the mainland, achieved its 2009 output target of 800,000 tons of refined copper even though production fell this month because of annual repairs, a company spokesman said yesterday.

"Output has been just over 800,000 tons this year," company spokesman Kang Shuigen told Reuters.

The figure represented a rise of 14 percent from 702,000 tons last year.

Kang said Jiangxi Copper's smelting and refining facilities in Jiangxi province would resume full operations today after the repairs.

He added the current power supply tightness in Jiangxi province was not expected to cut the company's production.

Jiangxi Copper has not yet decided whether it would run at full capacity to produce 900,000 tons of refined copper next year, Kang said.

China Daily/Agencies

(HK Edition 12/31/2009 page6)