Stocks rise as banks climb

Hong Kong stocks rose Wednesday, lifting the benchmark index from a three-month low, as oil producers climbed along with crude prices and banks gained on prospects for higher earnings.

Cnooc Ltd advanced 2.6 percent. China Construction Bank Corp gained 2.4 percent. China Railway Group Ltd advanced 1.8 percent after the nation's biggest construction company by total assets said it won 16 projects.

The Hang Seng Index (HSI) increased 1.5 percent to close at 22,969.30, rebounding from Tuesday's close at the lowest level since October 4. The Hang Seng China Enterprises Index climbed 1.6 percent to 12,508.52.

PetroChina increased 2.3 percent to HK$9.99. Bank of Communications Co advanced 1.7 percent to HK$7.82. Cheung Kong (Holdings) Ltd advanced 2.8 percent to HK$121.60. China Petroleum & Chemical Corp, known as Sinopec, climbed 2.1 percent to HK$7.34.

All but one stock rose among the 45 constituents of the HSI. Its futures gained 1.6 percent to 23,006.

CITIC Bank opens Singapore branch

CITIC Bank International Limited (CBI) said Wednesday it has opened a branch in Singapore, a move that marked "a major milestone" in the implementation of the regional expansion strategy of its parent, China CITIC Bank Corporation Limited.

The opening of the Singapore branch gives the group a strategic footprint in a region which counts as the fourth largest trading partner of China, the lender said in a statement.

For the first 11 months of the year, China's trade with ASEAN countries rose 41.0 percent year-on-year to $263.0 billion, making it the largest trading partner of the country in the region. At the same time, China's outbound FDI to ASEAN countries grew 8.6 percent year-on-year to $2.7 billion in 2009.

"We are seeing increased demand for value-creating financial solutions as companies adapt and position themselves to ride on the wave of global economic recovery," said Doreen Chan, chief executive officer of CBI. "Our investment in Singapore underscores CBI's commitment to be closer to clients' business needs, and to help clients realize their growth potential in Asia; particularly in maximizing the tremendous opportunities in China."

Cnooc buys stake in mainland coal firm

China National Offshore Oil Corp, parent of Hong Kong-listed Cnooc Ltd, purchased a 50 percent stake in China United Coalbed Methane Co for 1.2 billion yuan, the official Xinhua News Agency reported in a flash headline Wednesday, without saying where it got the information.

Yardway taps into sewage treatment

Yardway Group Limited, a Hong Kong-based vehicles machinery trading company, said Wednesday it will partner with state-owned Beijing Capital Group Ltd, to tap the sewage treatment market in the mainland's rural areas. This change of business strategy will be powered through an acquisition of a technology company, whose technology is the key to make small and mobile sewage treatment trucks suitable to the target market.

Shangri-la, Kerry to bid with Wilmar

Wilmar International said Wednesday it will submit a joint bid to buy the land use rights for six sites in China's northern province of Liaoning. Wilmar will partner Kerry Properties and Shangri-la Asia, two firms linked to Malaysian billionaire Robert Kuok, in the bid. Wilmar, controlled by a Kuok's nephew, earlier this month bought land in Liaoning in partnership with Kerry and Shangri-la, sparking a sell-off in its shares as investors questioned why an agricultural firm was diversifying into property.

Bloomberg - Reuters

(HK Edition 12/30/2010 page3)