China News Summary
Thursday China Market Summary
The benchmark Shanghai Composite fell 1.67 percent to 1,983 points today, with Shenzhen Composite edging up slightly by 0.25 percent to 6,696 points and the Hong Kong Hang Seng down by 0.77 percent to 12,815.80.
All three markets opened with large drops following Wall Street's slide but recovered throughout the day on the back of various pieces of apparently good news.
TDS-CDMA, winners and winners
China's Ministry of Industry and Information Technology (MIIT) announced 10 measures to cope with the global financial crisis today, one of which was spending lots of money on China's homegrown TD-SCDMA
3G mobile technology. This includes China Mobile's US$4 billion spree on handsets compatible with the dubious standard - bad but inevitable news for CM investors and excellent news for those being paid to
supply them. In Shanghai and Shenzhen, the stock price of 10 telecommunications equipment manufactures, including Bird and Beijing Zhongchuang Telecom Test, surged to their daily 10 percent trade limit.
The market was so sympathetic to China Mobile's plight that its share price was not even affected by yesterday's communication from the National Bureau of Statistics that 86 percent TD-SCDMA trial users
would not even be willing to purchase its TD-SCDMA handsets. In fact China Mobile even ended trading marginally up today by 0.3 percent. Chairman Wang Jianzhou said on Tuesday that the company's parent (i.e. China) may buy more shares in the company if its share price falls too much.
Textiles welcome again
In other good news, high tax rebates are returning for textile exporters. China had reduced rebates for low-value added industries but - with understandable concern of global slowdown hitting the mainland - China and garment exporters are now again friends, with the tax rebate rising from 14 to 17 percent. Nine domestic shares surged to their 10 percent limit today on he news, led by Tianshan Textile
and Shenzhen Textile.
Disneyland
Despite apparent denials and protests from the city government, Shanghai Securities News reported of an imminent deal to build a Disney theme park in the city. On the back of the news, property developer China Vanke rose 2.0 percent to 6.63 yuan, Poly Real Estate Group jumped 3.7 percent to 16.88 yuan and Shanghai Lujiazui Finance & Trade Zone Development surged by the 10 percent daily limit to 16.19
yuan.
Gold miners gain
Gold miners gained on bargain hunting after losses earlier in the week. Shandong Gold soared 7.6 percent to 41.85 yuan and Zhongjin Gold climbed 8.1 percent to 32.02 yuan.
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17/12/08 Hong Kong cuts interest rates, seeks expansion of Renminbi
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16/12/08 Chinese State-owned companies told not lay off staff
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15/12/08 China's industrial production growth slowest in a decade
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10/12/08 Renewables best performers on mainland markets, despite rhetoric change
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09/12/08 Chinese Stocks down as economic conference enters second day
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08/12/08 Chinese markets gain as governments meets to discuss stimulus measures
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05/12/08 Shanghai and Hong Kong indexes rally on real estate policy news
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04/12/08 Steel stocks rally on the mainland