Stocks retreat for 1st quarterly decline

Hong Kong stocks fell, dragging the Hang Seng Index to its first quarterly decline in the last four quarters. The Hang Seng Index dropped 0.6 percent to 21,239.35 as of the close of trading, after rising as much as 0.3 percent earlier. The measure has fallen 2.9 percent this quarter, halting three straight quarters of gains. The Hang Seng China Enterprises Index, which tracks the so-called H-shares of Hong Kong-listed mainland companies, lost 0.1 percent to close at 12,397.59.

China Oilfield Services, a unit of the nation's largest offshore oil producer, and Henderson Land Development, the Hong Kong-based builder controlled by billionaire Lee Shau-kee, both declined more than 4 percent. Bank of Communications Co, China's fourth-largest publicly traded bank, jumped 4.4 percent after reporting full-year profit increased. Fook Woo Group Holdings Ltd, the paper recycling company, which began trading today, surged 17 percent.

HK posts HK$47b fiscal surplus for April-February

Hong Kong posted a HK$47 billion ($6.03 billion) fiscal surplus for April-February, the first 11 months of the financial year, up from a surplus of HK$43.2 billion a year earlier, official data showed Wednesday. For month-on-month figures, there was a deficit of HK$0.9 billion in February against a surplus of HK$49.1 billion in January. The February figures did not reflect major expenditure items such as funding support for the West Island Line and payment for Sichuan reconstruction, a government spokesman said in a statement. Hong Kong Financial Secretary John Tsang said in his budget speech in February that the city was expected to see a consolidated surplus of HK$13.8 billion for this fiscal year ending March 2010.

HKEx Fund assets HK$2.2t end-Feb

The assets of the Exchange Fund, which is used to back the Hong Kong dollar, totalled HK$2.2 trillion ($282.3 billion) at the end of February, the Hong Kong Monetary Authority (HKMA) said in a statement Wednesday. The figure was HK$3.9 billion lower than the total at the end of January, with foreign currency assets and Hong Kong dollar assets falling HK$1.2 billion and HK$2.7 billion respectively, the city's de facto central bank said. The decline in foreign currency assets was mainly the result of a decrease in unsettled purchases of securities, which was partly offset by an increase in Certificates of Indebtedness. The decline in Hong Kong dollar assets was mainly due to fiscal drawdowns, which were partly offset by valuation gains on Hong Kong equities.

Green Global Mongolia mine to start output in H2

Hong Kong-listed Mining firm Green Global Resources will start iron ore production in the second half of the year in Mongolia, despite disturbances caused by severe weather there, its chairman said Wednesday. "We're about two weeks behind schedule now but we are working hard to catch up," Joseph King, newly appointed chairman of the agribusiness-turned-mining company, told Reuters on the sidelines of a mining conference in Hong Kong. Green Global will change its name to North Asia Resources Holdings Ltd following a reverse takeover last year amid a slew of Mongolian mining firms flocking to Hong Kong to list.

Hengdeli says first quarter sales up 35%

Luxury watch retailer Hengdeli Holdings saw its retail sales in the first quarter rise 35 percent from a year earlier and expects growth to continue as China's economy expands, its chairman said Wednesday.

"We are very optimistic (over the growth) for the whole year as (consumption) confidence returns," chairman Zhang Yuping told reporters in a small group interview, adding watches in the 10,000-50,000 yuan ($1,465-$7,326) range would see the strongest growth in 2010 in first-tier cities in the mainland. Hengdeli's jewellery business could account for 20-30 percent of revenue in five years, he added.

Agencies - China Daily

(HK Edition 04/01/2010 page2)