Home prices rise last week

Hong Kong existing home prices rose further to the highest since 1997, according to an index by Centaline Property Agency Ltd. The Centa-City Leading Index rose 0.58 percent to 85.62 in the week ended October 24, up from 85.13, the property broker said in an emailed press release Friday.

Yuan deposits rise 14.5% in Sept

Yuan deposits in Hong Kong climbed 14.5 percent in September to a record, the Hong Kong Monetary Authority said Friday.

Savings in the renminbi reached 149.3 billion yuan, compared with 130.4 billion yuan in August, the city's de facto central bank said on its website. That was the highest level since the central bank allowed yuan accounts to be set up in February 2004.

"The HKMA deal shows yuan deposits in Hong Kong are not really enough to satisfy the growing demand," said Jinny Yan, an economist at Standard Chartered Plc in Shanghai. "More yuan deposits in Hong Kong will enable a broader and deeper offshore yuan market."

Gold flow to the mainland doubles

The flow of gold from Hong Kong to the mainland in the first eight months of 2010 is already nearly double that for the whole of 2009, suggesting appetite in the mainland for jewellery and investment purposes is rocketing.

China, the world's top consumer of base metals and second biggest user of oil is on gold bugs radar, with any hint that Beijing plans to boost its gold holdings rippling through international markets sending bullion higher.

No official numbers exist on mainland imports, but official Hong Kong trade data released Friday shows 78.5 metric tons of gold moved from the city to the mainland in the year to August.

Volvo makes operating profit

Swedish carmaker Volvo, owned by Chinese group Geely Automobile, made an operating profit in the third quarter, the company said Friday.

Volvo, bought by Geely from Ford in August, did not disclose details, but said it has been profitable since the start of the year.

The car maker said it sold 272,555 cars in the year to September, up 12.5 percent on the previous year.

Geely paid Ford $1.3 billion in cash for Volvo and issued a $200 million note to the US group with further payment due later this year.

Geely's purchase of Volvo was China's biggest acquisition of a foreign car maker and reflects the nation's rapid rise in the auto world.

CCB Q3 profit increases 31%

China Construction Bank Corp posted a 31 percent increase in third-quarter profit Friday, fueled by rising demand for credit and a decrease in non-performing loans.

Net income climbed to 39.8 billion yuan ($6 billion), or 0.17 yuan a share, from 30.3 billion yuan, or 0.13 yuan, the Beijing-based bank said in a statement to the Hong Kong stock exchange. That beat the 36.7 billion yuan median estimate of nine analysts surveyed by Bloomberg News.

Construction Bank joins smaller rivals Agricultural Bank of China Ltd and Bank of China Ltd in reporting higher-than-expected earnings. The profit growth and improved asset quality may boost demand for the stock when Construction Bank begins Asia's biggest rights offer. Bank of China Ltd said Friday it will seek to raise about 60 billion yuan next month.

Bloomberg - Reuters

(HK Edition 10/30/2010 page2)