Chinese equities edged down 0.19 percent Wednesday, declining for the first time in four trading days, following an overnight slump on Wall Street as investors were disappointed the new financial stability plan did not offer more details on buying toxic assets.

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The Shanghai Composite Index fell 4.34 points, or 0.19 percent, to close at 2,260.82, but the Shenzhen Component Index was up 0.29 percent, or 23.66 points, to 8,289.21.

Combined turnover was 267.93 billion yuan ($39.23 billion), up from 213.81 billion yuan on the previous day.

US Treasury Secretary Timothy Geithner announced a comprehensive Financial Stability Plan Tuesday morning, unveiling a new bailout package that could top $1.5 trillion to restore the US ailing financial system. However, Geithner gave no details on how the new joint entity would price the toxic assets.

Overnight, the Dow Jones fell 381.99, or 4.62 percent, to 7,888.88. The Standard & Poor’s 500 index dropped 42.72, or 4.91 percent, to 827.17 and the Nasdaq slid 66.83, or 4. 20 percent, to 1524.73.

Nonferrous metal shares lowered on profit-taking, erasing previous gains. Jiangxi Copper Corp lost 2.5 percent to 17.95 yuan. Shares of the Tongling Nonferrous Metals Group was down 4.68 percent to 10.38 yuan. Yunnan Aluminium Co Ltd shed 2.02 percent to 6.78 yuan.

Beverage producer shares, however, rose on talks that the government is going to approve a stimulus plan for the light industries.

According to media reports, the plan included lowering consumption taxes on alcohol, cosmetics and luxury products.

Kweichow Moutai Co Ltd, China’s best-known liquor producer, jumped 3.55 percent to 120.09 yuan. Wuliangye Group, another famous liquor producer, surged 8.35 percent to 17.9 yuan.

Cement manufacturer shares also rose because investors bet on the sector’s increasing profit this year as the country’s infrastructure construction would boost demand, a China Merchants Securities analyst said.

Shares of both Fujian Cement Co Ltd and Hebei Taihang Cement Co Ltd gained by the daily limit of 10 percent to 5.5 yuan and 7.51 yuan, respectively. Jidong Cement Group added 4.49 percent to 5.94 yuan.

Shoe maker Anta may raise US$405m in IPO

2007-06-21 16:02:34.0
Shoe maker Anta may raise US$405m in IPO11000008Light Industry/enpproperty
By ()
Updated: 2007-06-21 16:02

Anta Sports Products Ltd, China’s largest maker of athletic shoes, may raise HK$3.17 billion (US$405 million) in a share sale that attracted Houston Rockets’ owner Leslie Alexander, two people familiar with the deal said.

The company will sell 600 million new shares at HK$4.28 to HK$5.28 each in Hong Kong, said the sources, declining to be identified before an official statement. The initial public offering values Anta, which tripled profit last year, at up to US$1.6 billion.

Alexander will invest HK$234.5 million in the IPO, according to Bloomberg News. China’s Yao Ming, whose play in the National Basketball Association helped propel the game’s popularity in China ahead of the 2008 Beijing Olympics, is the Rockets’ center.

“We like the market-leading position that Anta has created in the sporting goods field,” said Andy Mantel, managing director at Pacific Sun Investment Management Ltd in Hong Kong, adding that he’s interested in buying the stock.

Chinese consumer-goods firms, including Belle International Holdings and Intime Department Store (Group) Co, have gone public this year, taking advantage of soaring valuations to raise funds.

The nation’s sportswear market is growing about 23 percent annually, according to Daiwa Securities Group Inc, which is helping arrange the IPO.

Last year, Anta had the largest share of the athletic shoes market in China, according to its Website. The company, with 4,000 sales outlets operated by agents and third parties, has the second-biggest distribution network among China’s sporting goods makers, after Li Ning Co, Daiwa said.

The high end of the price range values Anta at 19.7 times its estimated 2008 earnings, the people said. Nike Inc, the world’s largest maker of athletic shoes, trades at 16.7 times next year’s earnings.

Anta had 3.2 percent of China’s overall sportswear market in 2005, trailing Nike’s 13.1 percent, Adidas with 12.3 percent and Li Ning on 9.6 percent, according to a share sale document distributed to fund managers yesterday that cited ZOU Marketing, a Shanghai-based sports consultant firm.

Chinese equities extended losses from the previous trading by moving down 0.56 percent Thursday, led by falls of material producers.

The Shanghai Composite Index lost 12.73 points, or 0.56 percent, to close at 2,248.09, but the Shenzhen Component Index went up 0.36 percent, or 29.59 points, to 8,318.80.

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Combined turnover declined to 221.1 billion yuan ($32.36 billion) from 267.93 billion yuan on the previous day.

Gains outnumbered losses by 517 to 344 in Shanghai and 453 to 292 in Shenzhen.

The government rolled out plans to boost the ship building industry on Wednesday. Measures included banning new shipyards for three years and supporting domestic-vessel purchases.

In addition, financial institutions were encouraged to increase credit for purchasers of exported ships, and extend fiscal and financial support for domestic buyers of oceangoing vessels until 2012.

Buoyed by the plan, China CSSC Holdings Limited rose by the daily limit of 10 percent to 58.48 yuan. Guangzhou Shipyard International Company Limited rose by the daily limit of 10 percent to 20.89 yuan.

Beijing Jingxi Tourism Development Co advanced by the daily limit of 10 percent to 10.91 yuan on the news that US based Universal Studios was expected to open a theme park in the Tongzhou District of Beijing. Tsinghua Unisplendour Corporation Limited, an information technology company, rose by the daily limit of 10 percent to 13.19 yuan.

However, gains failed to offset falls by material producers.

US crude oil traded at $35.94 a barrel, down 4.3 percent on Wednesday after the International Energy Agency said global energy demand would post its biggest decline since 1982. It was the fourth consecutive contraction of oil prices.

A US government report also announced a larger-than-expected increase of oil inventory at 4.7 million barrels. The previous forecast was 3 million barrels.

Shares of coal producers dropped after global crude oil prices fell, as investors decided lower oil prices indicated decreased demand energy.

China Shenhua Energy Company Limited, the country’s largest coal producer, lost 4.29 percent to 21.21 yuan. Pingdingshan Tianan Coal Mining Co dipped 4.96 percent to 18.22 yuan.

Metal shares added to the market decline. Non-ferrous metal prices fell after market disappointment because China’s domestic and foreign demand for metal dropped.

The General Administration of Customs said Wednesday that China’s export volume went down 17.5 percent year-on-year to $90.45 billion in January. Its import volume fell by a much larger 43.1 percent to $51.43 billion.

Data from the customs administration showed in 2008, copper imports dropped 5.1 percent to 2.637 million tons from a year ago and copper exports slid 0.8 percent to 620,000 tons.

Shanghai copper shed 1,480 yuan per tonne to 27,960 yuan per tonne. Stocks of other materials followed the lead.

Affected by the news, Yunnan Tin Group lost 2.59 percent to 15.77 yuan.Yunnan copper lost 2.64 percent to 14.41 yuan. Shandong Nanshan Aluminum Co moved down 2.98 percent to 8.80 yuan.

2009-02-06 11:29:40.0Auto sales ’surpassed US in Jan’China Daily,新闻听力,听中国日报, the world’s largest auto market ,Chinese auto sales , the world’s No 2 vehicle market听中国日报1162448China Daily Media News2@lt/enpproperty
Auto sales ’surpassed US in Jan’

[ 2009-02-06 11:29 ]