Hutchison seeks European assets

Billionaire Li Ka-shing's Hutchison Whampoa Ltd would be a buyer rather than seller of European telecommunications assets as its 1.3 billion-euro ($1.6 billion) proposed takeover of an Austrian rival drew regulatory scrutiny.

As the biggest Asian investor in mobile-phone networks in Europe, Hong Kong-based Hutchison's Three division operates in countries including Italy, the UK and Sweden. In Austria, the European Commission last month opened a full antitrust probe into Hutchison's takeover of Orange Austria. Hutchison will seek a judicial review if the transaction is blocked and won't commit to the plan for an unlimited time, Managing Director Canning Fok said in Vienna on Sunday.

HK told to improve land use planning

Hong Kong, whose position as a core location for international companies is under threat from other Asian competitors, should plan its long-term land use wisely, a report reveals.

A primary challenge facing Hong Kong leaders is how to increase the attractiveness of office locations outside the central business district to both corporate occupiers and their staff, according to the report released by Royal Institution of Chartered Surveyors (RICS).

Johnny Dunford, global commercial property director of RICS, in releasing the report said that currently the average CBD office rent is US$122.4 per sq ft in Hong Kong, much higher than the unit rent price of central business districts in other Asian cities: US$89.2 for Beijing, US$80.6 for Shanghai and US$84.1 for Singapore.

China COSCO tips wider H1 net loss

China COSCO Holdings Co Ltd, the flagship of the country's biggest shipping conglomerate, warned its first-half net loss would increase to at least 4.14 billion yuan ($648.83 million) due to low freight rates and high operating costs.

"The company made a net loss of 2.7 billion yuan in the first quarter of this year, and for the first half the loss will be widened by more than 50 percent from the same period last year," Xiao Junguang, the company's authorized representative, told Reuters.

China COSCO posted a net loss of 2.76 billion yuan for the first six months of 2011.

Rongsheng hit by insider accusation

China Rongsheng Heavy Industries Group Holdings Ltd plunged to its lowest level since 2010 in Hong Kong trading after the US Securities and Exchange Commission filed a complaint accusing a company owned by Chairman Zhang Zhi Rong of insider trading.

The company also said on Monday that it expects first-half profit to decline significantly over last year's because of falling orders and prices for ships. The company hasn't announced any new orders in 2012.

The nation's largest private shipbuilder tumbled 16 percent, the biggest decline since it was listed in November 2010, to HK$1.17. The stock has fallen 75 percent in the past year, compared with a 13 percent drop for Hong Kong's Hang Seng Index.

European debt deal lifts up stocks

Hong Kong stocks rose, with the benchmark index gaining for a third day, as European Central Bank President Mario Draghi sought consensus among policy makers for a plan to ease borrowing costs for Spain and Italy.

The Hang Seng Index advanced 1.6 percent to 19,585.40 at the close of trading in Hong Kong, with all but four shares gaining. The gauge rose 2 percent on July 27, its biggest advance in almost a month, after Draghi said policy makers will do whatever is needed to preserve the 17-nation euro.

Futures on the Hang Seng Index advanced 1.6 percent to 19,546.

China Daily - Agencies

(HK Edition 07/31/2012 page2)