Stocks close at 2-month high

Hong Kong stocks ended 1.82 percent higher at a 2-1/2-month high Wednesday as easing concerns over a possible interest rate hike in the United States helped lift banking issues such as ICBC. The benchmark Hang Seng Index ended 391 points higher at 21,928.77, its strongest close since January 12 this year. The China Enterprise Index of top locally listed mainland stocks rose 2.3 percent to 12,987, its strongest close since January 11. ICBC rose 3.8 percent to HK$6.28.

Country Garden to meet investors for bond sale

Hong Kong-listed mainland developer Country Garden has hired JPMorgan and Goldman Sachs to manage a planned benchmark-sized, seven-year dollar bond sale, a source close to the deal said. The company will meet investors in Hong Kong, Singapore, London and New York from April 9 to 14 ahead of the planned sale, the source said on Wednesday. The proceeds will be used to refinance local currency convertible bonds due in 2013 worth 4.3 billion yuan ($630 million), the source reported. Country Garden plans to invite tenders to buy back its convertible bonds.

Thai govt agrees to CAT takeover

The Thai cabinet Wednesday approved a plan by state-owned CAT Telecom to buy the CDMA business of Hong Kong-based Hutchison Telecom for 7.5 billion baht ($232 million). CAT Telecom will own 100 percent of the CDMA (code division multiple access) mobile business after the purchase, a government spokesman told reporters.

Brazilian, Nigerian companies seek HK listings

Hong Kong Exchanges & Clearing Ltd said a Brazilian resources company is seeking to sell shares for the first time in the city.

The Brazilian company is in discussions with intermediaries to work on a possible listing in Hong Kong, said Henry Law, a spokesman of HKEX. He declined to name the company, and said the offering schedule will depend on the company's progress with listing preparations.

Moreover, Hong Kong Exchanges Chairman Ronald Arculli has received an invitation to visit Nigeria to discuss the potential for that country's companies to sell shares in the city, Law said.

China Life profit doubles on market rebound

China Life, the world's top life insurer by market value, reported fourth-quarter earnings more than doubled over a year ago, helped by new accounting rules, a rebound in global markets and strong premium growth. China Life's net profit rose to 13 billion yuan ($1.91 billion) in the three months through December from 6 billion yuan during the same period last year, according to Reuters' calculations using company figures from a filing with the Shanghai Stock Exchange. Annual profit rose to 32.88 billion yuan from 19 billion yuan a year earlier. Late last year, China unveiled changes to accounting standards for insurers that alter how they account for income, acquisition costs and actuarial reserves. The move was said to bring the standards closer to international practices. The Hong Kong-listed shares of China Life, which has a market value of $124 billion, are largely flat so far this year, slightly outperforming the benchmark Hang Seng index's 2 percent fall.

Agencies - China Daily

(HK Edition 04/08/2010 page2)