Stocks fall in longest losing streak since Jan

Hong Kong stocks fell Thursday, dragging the benchmark index to its longest losing streak in 14 weeks, after Moody's Investors Service said it was reviewing Portugal's credit rating, heightening concern Greece's debt crisis will spread through Europe and derail the global economic recovery.

The Hang Seng Index declined 1 percent to close at 20,133.41, widening its losses in the past four days to 4.6 percent. The gauge completed its longest losing streak since the six days ended January 27. The Hang Seng China Enterprises Index, which tracks the so-called H-shares of Hong Kong-listed mainland companies, slid 0.8 percent to 11,449.22.

Li & Fung Ltd, which received 27 percent of its fiscal 2009 revenue from Europe, declined 4.1 percent. Evergrande Real Estate Group Ltd, China's second-biggest developer by sales, slumped 10 percent after the Shanghai Securities News said the company will cut prices for its properties across China.

Swire Properties said to pull $2.7b HK IPO

Swire Properties Ltd, landlord to Time Warner Inc and Societe Generale SA in Hong Kong, canceled a plan to raise as much as HK$20.8 billion ($2.7 billion) in an initial share sale, said two people briefed on the matter.

The company decided to pull the Hong Kong IPO after a stock market rout sparked concern about how the shares would perform after listing, one of people said, declining to be identified because the matter is private.

Swire Pacific Ltd, the parent of Swire Properties, has no comment on the IPO, Cindy Cheung, a company spokeswoman, said in an e-mailed reply to questions Thursday.

L'Occitane plans to double China network in 5 yrs

Skincare products retailer L'Occitane International SA, the first French company to go public in Hong Kong, said Thursday it plans to double its network in China over the next five years. The company also expects to increase the number of outlets in Japan by 50 percent over five years, said Andre Hoffmann, Asia-Pacific president, speaking to reporters in Hong Kong.

L'Occitane, which sells skincare products and fragrances, raised $708 million after pricing its Hong Kong initial public share offering at top of the indicative range. It plans to use the capital to fund the expansion of its global retail network and improve its manufacturing plants.

Li & Fung to plan sale of 10-year US$ bonds

Li & Fung Ltd, the biggest supplier for retailers including Wal-Mart Stores Inc, plans to sell 10-year bonds denominated in US dollars as soon as Thursday, according to a person familiar with the matter.

Li & Fung, based in Hong Kong, told investors it may price the notes to yield 1.7 percentage points more than similar-maturity Treasuries, said the person, who asked not to be identified as the discussions are private.

The company plans to sell dollar bonds with help from Citigroup Inc, HSBC Holdings Plc and JPMorgan Chase & Co to finance "development and acquisitions," it said in statements Thursday, without being more specific. Standard & Poor's plans to rate the new bonds A-, its seventh-highest investment-grade ranking, the risk assessor said in an e-mailed statement today.

Agencies - China Daily

(HK Edition 05/07/2010 page2)