Shares up as metals rise

Stocks rose in yesterday's trading, lifting the benchmark index to the highest level in more than six weeks.

China Cosco Holdings Co, operator of the world's largest dry-bulk fleet, jumped 3.6 percent after its parent said it expects to report a full-year profit on rebounding trade demand. Li & Fung Ltd, the biggest supplier for retailers including Wal-Mart Stores Inc, climbed 4.2 percent. PetroChina Co advanced 2.8 percent after its chairman confirmed it is part of a bid for Arrow Energy Ltd. China Resources Land Ltd rose 1.4 percent on its first day trading as the newest constituent of the Hang Seng Index.

The Hang Seng Index gained 2 percent to close at 21,196.87, set for its highest close since January 20. The Hang Seng China Enterprises Index, which tracks so-called H-shares of Hong Kong-listed mainland companies, added 2.3 percent to close at 12,202.80.

CLP said to be mulling sale of 10-yr dollar bonds

CLP Holdings Ltd, Hong Kong's biggest electricity supplier, may sell 10-year bonds denominated in US dollars, according to a person familiar with the matter. The company said in an e-mail it will meet with investors in Hong Kong March 10, Singapore on March 11 and London on March 12. CLP Power Hong Kong Financing Ltd will sell the bonds and CLP Power Hong Kong Ltd will guarantee them, the e-mail said. CLP spokeswoman Winifred Wong confirmed the bond investor meetings, without providing further details.

HK dollar hits 7-week high

The Hong Kong dollar edged higher against the US dollar yesterday, buoyed by a rally in the city's stock market and expectations for a stronger yuan. The local currency rose to as high as 7.7599 at 0942 GMT, its strongest level in seven weeks, up about 0.04 percent from Friday's rate. Local interbank rates were mixed. Short-dated rates remained at a low level because of abundant liquidity in the banking system. But longer-dated interbank rates and interest rate swaps (IRS) edged up, taking a cue from a rise in US bond yields after US jobs data fuelled economic recovery hopes and expectations for a Federal Reserve interest rate rises. The one-year HIBOR rose to 0.53857 percent, up from Friday's 0.51643 percent.

HK forex reserves at $258.2b at end-Feb: HKMA

Hong Kong's official foreign currency reserve assets stood at $258.2 billion at the end of February, the Hong Kong Monetary Authority said yesterday, up 0.43 percent from $257.1 billion at the end of January.

Hong Kong, whose currency is linked to the US dollar, ranks as the world's seventh-largest holder of foreign currency reserves after the mainland, Japan, Russia, Taiwan, India and Korea.

Giti Tire plans $500m HK IPO

The mainland's largest tiremaker Giti Tire plans to launch a $400-$500 million Hong Kong initial public share offering this month, sources with knowledge of the deal said. Giti Tire plans to seek Hong Kong listing committee approval in the coming two weeks, aiming to list shares in April, one of the sources said yesterday. The deal is sponsored by BofA Merrill Lynch and Credit Suisse.

Founded in 1993, Giti Tire had originally planned its IPO for 2004, but postponed the issue because of restructuring reasons. The company revived its listing plan in 2008, but again postponed it because of market conditions.

Agencies - China Daily

(HK Edition 03/09/2010 page2)