Stocks fall on airlines, shippers

Hong Kong stocks fell, sending the Hang Seng Index (HSI) to its lowest level in five months, as airlines and shipping lines declined after oil prices gained.

Cathay Pacific Airways retreated 1.4 percent on speculation fuel costs will rise after violence in Libya that pushed oil prices to a new high. China Cosco Holdings dropped 2 percent. Cosco Pacific Ltd sank 3.5 percent. Consumer stocks droppd on concern higher oil prices will raise production costs.

The HSI retreated 1.3 percent to 22601.04. All but five stocks fell in the 45-member gauge. The MSCI Hong Kong slid 1.3 percent to 10693.26. The Hang Seng China Enterprises Index slid to 12059.75.

Futures on the HSI dropped 1.3 percent to 22650. The HSI Volatility Index, the benchmark gauge for Hong Kong stock options, jumped 12 percent to 21.71.

39 IPO applications 'in pipeline': Arculli

Hong Kong Stock Exchange had 39 applications for initial public offerings (IPOs) "in the pipeline" for 2011, while another 23 had been approved in principle, the bourse's Chairman Ronald Arculli said at a forum in the city Thursday.

Eighty-seven Hong Kong IPOs last year raised a record $49 billion, according to data compiled by Bloomberg that excludes the exercise of overallotment options. Seven IPOs this year have raised $282 million in the city, the data show. Six offerings in January and February last year raised $3.1 billion.

Sun Hung Kai tapped for Shanghai fund

A Chinese state company has tapped Hong Kong's Sun Hung Kai Properties Ltd and Guoco Group Ltd as potential investors for a fund that aims to raise up to 20 billion yuan ($3.1 billion) to develop Shanghai's Bund district, a source said on Thursday.

The Shanghai Bund Investment Group, tasked with developing the city's most photographed waterfront, aimed to raise up to 3 billion yuan in the first batch by the end of this year, the person familiar with the plan said.

The fund was likely to take the form of a partnership, with the Bund Investment Group holding a 30 percent stake, added the source, declining to be identified as he was not authorized to speak to the media.

PICC P&C to sell 10-year debt

PICC Property & Casualty Co plans to sell as much as 5 billion yuan of 10-year subordinated debt, subject to shareholders' approval, the company said in a filing to the Hong Kong Stock Exchange Thursday.

Alibaba denies merger report

Alibaba.com Ltd hasn't held merger discussions with Ctrip.com International Ltd, Alibaba spokesman John Spelich said Thursday, denying a local media report. "There's no truth to it," Spelich said of the report.

Alibaba Chairman Jack Ma met representatives from Ctrip in the US this month to discuss cooperation, including a possible merger or acquisition, the Hong Kong Economic Journal reported Thursday, citing an unidentified person in the private equity industry.

PetroChina, Sino Gas to market jointly

Sino Gas & Energy Holdings Ltd, an Australian company focused on developing Chinese gas assets, signed a joint gas marketing agreement with PetroChina on Thursday.

Fantasia to list depositary receipts

Taiwan's regulator approved Fantasia Holdings Group Co's application to list 120 million depositary receipts on the local stock exchange, the Financial Supervisory Commission said in a statement on its website Thursday.

Bloomberg - Reuters

(HK Edition 02/25/2011 page2)