Stocks end flat after days of gains

Hong Kong shares trimmed gains to end flat yesterday after three straight sessions of gains as investors took a breather after recent strength. The benchmark Hang Seng Index ended up 0.74 points at 21,208.29. The China Enterprises Index of top locally listed mainland stocks ended up 0.06 percent at 12,217.33.

Vitasoy to double mainland capacity

Vitasoy International Holdings Ltd, a Hong Kong soy milk supplier to Starbucks Corp, will invest about 300 million yuan ($44 million) to double its capacity on the mainland and tap increasing demand for packaged beverages.

Vitasoy will build a new factory in Nanhai to meet rising demand in southern China, where business "has grown so strongly", Chief Executive Officer Larry Eisentrager said in a Bloomberg TV interview yesterday.

He declined to provide further details, as negotiations for the factory are still pending.

The beverage maker, which started in Hong Kong 1940, sells its products in more than 40 markets, including the US, China, Europe, Australia and New Zealand. Soy milk made up 44 percent of Vitasoy's sales for the year ended March, 2009.

HK$ within sight of 7-week high

The Hong Kong dollar held within a narrow range against the US dollar yesterday in quiet trade, while interbank rates were mostly steady and hovered at a level close to that of the previous session. The local currency traded between 7.7590 and 7.7600 during the session, but remained within sight of the 7-week high of 7.7580 hit on Monday.

"It's just range trading," one dealer said, adding the spot rate found resistance above 7.76 overnight. Another trader expects the local currency to keep a firm bias on the prospect of capital inflows, partly driven by expectations for a stronger yuan.

HK to tender 5-year EFNs

The Hong Kong Monetary Authority said it would tender Exchange Fund Notes (EFNs) with a maturity of 36 months through the reopening of existing five-year EFNs on March 19. If the amount of notes reserved for non-competitive tender is undersubscribed, the non-subscribed amount will be added to the portion of notes for competitive tender.

Agencies - China Daily

(HK Edition 03/11/2010 page3)