Investors in China�s main financial district are talking about the following before the start of trade today:
Gains in overseas markets may give a boost to shares today. Among notable Chinese stocks in overnight trading, online game operator The9 rose by 13% after the company said it reached an agreement to license its Fireball game for distribution in Southeast Asia and Taiwan. The company is about 22% owned by Zhu Jun, a Chinese entrepreneur that was last year rumored to be interested to investing in the British soccer league�s Liverpool Football Club.
Investors are also keeping an eye on IPOs in Hong Kong. Chow Tai Fook, the jewelry retail arm of Hong Kong billionaire Cheng Yu-tung�s private holding company, has launched an IPO this month, part of wave of listings there before the end of the year. Among them, China Outfitters Holdings, a supplier of men�s apparel aimed at mid- to- high-income consumers in China that partners with Iconix Brands of New Jersey, said today it has revived a IPO at the Hong Kong Stock Exchange that was shelved this summer. (See related story here.) Coach of the U.S. said this month it plans a secondary listing in the city. China First Chemical Holdings also said today that it plans to list in the city. China Everbright Bank, one of the country�s largest financial institutions, is looking to revive an IPO, too, according to a report in today�s China Securities Journal. The bank listed at the Shanghai Stock Exchange on Aug. 18 last year. The stock has lost 5% since.
Geely Auto, one of China�s largest private auto makers, said yesterday it will buy stakes in five non-wholly owned subsidiaries from three companies that are indirectly 90% owned by Chairman Li Shufu and his son. The two will earn a total of 736 million yuan from the sale. Li ranked no. 87 on the 2011 Forbes China Rich List with wealth of $1.2 billion. Its Hong Kong listed shares have lost more than half of their value in the past year.
In trading in China yesterday, shares in real estate shares fell after Vice Premier Li Keqiang warned that the government opposed overly quick rises in prices, stoking worries that the current tight monetary policy won�t be ending soon. Among the decliners ,China Vanke lost 0.4%. A report in the China Business News today notes that with real estate investment in the first 10 months of this rising 31% from a year earlier, it�s hard to say whether industry shares have actually hit bottom. The paper suggests the need for a quick reversal of government policy is limited. Chinese investment banking leader China International Capital also recently issued a report warning that real estate prices will be little changed next year, the newspaper said.
In other news involving China�s property industry, shares in New York-listed IFM Investments shot up 102% yesterday after big Chinese primary real estate brokerage E-House said it reached a preliminary agreement to buy a 37% stake in the company. IFM holds the executive franchise for the Century 21 brand in China. (See related story here.) The purchase is the latest sign of consolidation and retrenchment among brokerages in the country at a time when the government has been trying to break property prices.
In an assessment of this year�s final outlook and next year�s prospects, Commerce Minister Chen Deming said yesterday that the 2011 increase in China�s consumer price index will be about 5.5%, according to a front-page report in the Shanghai Securities News. GDP growth in 2011 will exceed 9%, he said. However, Chen added, the economy will face risks next year. Gains in export growth will slow, and the trends in investment and consumer spending aren�t optimistic.
AIG � er, the U.S. Treasury Department�backed insurer PICC Property and Casualty of China said today it is planning a 1-for-10 rights issue. H-share owners can buy one share at HK$5.50 for each 10 held. The sale will raise almost $600 million to boost its capital base. AIG holds a 9.9% stake. The Hong Kong-traded stock closed at HK$10.40 yesterday. Look out below.
Looking ahead, Jiangsu Phoenix Publishing and Media, which is 72% owned by the government, plans to list on the Shanghai Stock Exchange tomorrow.
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