Lenovo beats Q1 estimates

Lenovo Group Ltd beat analyst estimates as the world's biggest PC maker widened its lead over rivals and acquired smartphone and server businesses to boost sales. Net income for the three months ended March this year fell 37 percent to $100 million, beating the $91.6-million average of analyst estimates. Revenue also missed estimates during the period, which had "significant currency impacts", the company said on Thursday. Sales for the period climbed 21 percent to $11.3 billion, missing the $12.1-billion average of analyst estimates. Growth would have been 28 percent if not for currency pressure, the company said. Lenovo's share price advanced 1.05 percent to HK$13.5 at the close of trading in Hong Kong on Thursday.

Top-luxury homes to test the waters

Hong Kong developers are poised to find out just to what extent the city's booming stock market has pushed up demand for luxury housing. Swire Properties Ltd is seeking buyers for six apartments at its Frank Gehry-designed building priced at up to HK$520 million each. Wheelock & Co and Nan Fung Group pulled together an international team of architects to create its "ultra-luxury" house-and -apartment project in the city's prestigious neighborhood, the Peak, which may go on sale in the third quarter. CK Hutchison Holdings Ltd and Sun Hung Kai Properties Ltd are also preparing to sell high-end residences.

RMB surges on rates delay hopes

The mainland's renminbi (RMB) rose the most this month on Thursday as a private manufacturing gauge recovered from a one-year low, and signs that the US Federal Reserve (Fed) will delay raising interest rates boosted demand for emerging-market assets. A preliminary index for May released by HSBC Holdings Plc and Markit Economics showed that contraction slowed for the first time in three months. Fed officials signaled they are unlikely to raise rates next month while leaving open the option of tightening later in the year, according to the April meeting minutes released on Wednesday. The renminbi advanced 0.11 percent, the most since April 28, to close at 6.1968 a dollar in Shanghai, China Foreign Exchange Trade System prices show. In offshore trading in Hong Kong, the currency rose 0.12 percent to 6.1998 as of 4:47 pm local time on Thursday.

Mainland stocks hit 7-year high

Mainland stocks rose to a seven-year high on Thursday as a gauge of factory output showed production contracting for a third straight month, boosting speculation the government will escalate efforts to stimulate the economy. China COSCO Holdings Co Ltd and China Shipping Development Co Ltd both jumped by the 10-percent daily limit after the two companies said they plan to form a venture in Singapore. Fiberhome Telecommunication Technologies Co advanced 2.2 percent after the government said it will accelerate construction of a broadband network. The Shanghai Composite Index climbed 1.9 percent to 4,529.42 at the close - the highest level since February 2008. The CSI 300 Index rose 1.8 percent. Hong Kong's Hang Seng China Enterprises Index fell 0.7 percent, while the Hang Seng Index lost 0.2 percent.

China Daily - Bloomberg

(HK Edition 05/22/2015 page7)