Still Suspended - Dow Jones Market Talk-HK
Wednesday, March 15 9:59 AM SGT
MARKET TALK-HK: Lai Sun Hotels In Shr Exchange Deal...
0957 [Dow Jones] Analysts expect Lai Sun Hotels (0571) to be buoyed by news it has entered into non-legally binding term sheet with Cheung Wah Development (0648) on proposed share exchange; analysts says move signals transition of company from hotel management to investment in Internet, telecoms, media and IT-related business and is positive to tie up with HK listing vehicle of Japan's Softbank. Cheung Wah Development shares remain suspended.(STT)
0955 [Dow Jones] Taiwan finance minister in unusual meeting with top aides, possibly to discuss likely impact on financial markets from Chinese Premier Zhu Rongji's annual news conference at 0830 GMT today.(KWC)
0953 [Dow Jones] Lai Sun group expected to be boosted by news it will purchase 50% stake in HKATV.com for about $300 million through Houseman International, which is wholly owned by Lai Sun Development (0488) and Lai Sun Hotels (0571). Group to pay $150 million in cash and 210 million shares in Lai Sun Development, says trader at local brokerage. Lai Sun Development, Lai Sun Hotels and Lai Sun Garment (0191) to resume trading today.(STT)
0949 [Dow Jones] China-linked shares bound for profit taking today as all good news on these stocks has been released and they've been safe haven for while, says analyst at local brokerage. H-share stocks made strong gains yesterday amid lower broad market.(SKO)
0948 [Dow Jones] Well-known Chinese government economist Wu Jinglian says in FT interview that Beijing ought to announce timetable for full convertibility of yuan as part of preparations to join WTO; he says current system requires lot of effort to prevent capital flight and hampers trade. This could be important signal sent by Beijing.(KDM)
0946 [Dow Jones] Unsourced Ming Pao report that joint tech fund of Sun Hung Kai (0016) and Beijing Enterprise (0392) will form strategic alliance with U.S.-based Commerce One to develop business-to-business e-commerce unlikely to impact shares, given sharp decline on Wall Street overnight, says trader at local brokerage; Sun Hung Kai up 0.3% to $73 yesterday; Beijing Enterprise down 1.9% to $10.05.(STT)
0942 [Dow Jones] "If there is a sharp decline on the (Hong Kong) stock market it's inevitable we'll have some kind of impact on (Hibor and HKD forwards)," says local money trader; losses in U.S. markets Tuesday raising fears of more deep losses for Hang Seng, and outflow of funds from HK banking system. So far such concern has had no impact on HKD, with USD/HKD now trading roughly steady at $7.7844.(EVZ)
0938 [Dow Jones] HK money market traders sidelined before weekend Taiwan presidential elections and amid rumors China will step up warnings on Taiwan, says dealer with large local bank. However so far such concerns having minimal impact on forwards or Hibor.(EVZ)
0935 [Dow Jones] HK shares set to open 200-300 points lower, taking cues from fall on Nasdaq overnight and weaker Nikkei. Sentiment poor in short term before Saturday's Taiwan presidential elections and on concerns over possible U.S. rate hike next week, says analyst at local brokerage. Telecom and tech shares expected to fare badly; China Telecom (0941) likely lower on 4.8% fall in ADRs in N.Y, and on news some of China's biggest high-tech companies joining with army to try and form country's third mobile phone operator, a move that could pose serious threat to existing operators, including China Telecom's parent China Mobile Communications.(SKO)
0925 [Dow Jones] In effort to dissuade investors in China from selling secondary market holdings to chase IPOs, new rules will come into effect this week requiring portion of new shares to be reserved for investors who hold stocks in secondary market. State media says implementation of new rules had been delayed so brokerages could adjust computer systems to handle change. Two IPOs this week to be affected by change - Tianjin Cement, which will offer 70 million Shenzhen A shares at CNY4.6 each, and Hebei Cangzhou Dahua, which will offer 80 million Shanghai A shares at CNY4.42 each.(RXM)
0906 [Dow Jones] Tianjin Development (0882) expected to benefit from Ming Pao report quoting source from securities field as saying red-chip company is actively seeking strategic alliances to develop logistic center in Tianjin, says trader at local brokerage; however expects upside capped by profit taking after gaining 9% in past two days. Shares rose 6.1% to $4.08 yesterday.(STT)
0902 [Dow Jones] HK's Apple Daily quoting China think tank official as warning in national television interview that Taiwan people will "face a disastrous impact" and China-Taiwan relations will "suffer absolute damage" if opposition candidate Chen Shui-bian wins Taiwan presidential election; such warnings not new, but tone won't reassure markets in Taiwan or HK.(CKC)
0859 [Dow Jones] Cable & Wireless HKT (0008) chief executive Linus Cheung says recent fall in HKT share price won't affect merger proposal from Pacific Century CyberWorks (1186). HKT fell 12% to $22.75 March 1, day after merger proposal was announced; shares closed yesterday at $22.70, while CyberWorks fell 1% to $20.50. CyberWorks offered HKT shareholders US$38.1 billion all-share or US$35.9 billion combination of cash and shares. Cheung says HKT's board will meet March 28 to discuss merger; expects to receive proposal from CyberWorks within two weeks and will reply mid-April.(RXM)
0857 [Dow Jones] Listed mobile phone operators may benefit from various unsourced media reports that New World Telephone, unit of New World Development (0017), and Hutchison Telecom, unit of Hutchison Whampoa (0013), will raise mobile fees by end March, says trader at local brokerage; says many operators have posted falls in net profit due to competition among six operators in HK, and healthy adjustment will help them recover from stretched profit margins. However doesn't expect major impact as mobile phone earnings only small part of total earnings. SmarTone (0318), which is mulling raising mobile rates in 2H00, may get support after sliding 14% in past two days; shares down 9.6% to $31 yesterday.(STT)
0833 [Dow Jones] U.S. Treasury Secretary Lawrence Summers adds his support to China trade bill before Congress, saying he believes proponents of eased trade with China are getting their message across. However, he also says China trade matter encompasses "complicated issues" and "a lot of hard work, a lot of persuasion" will be needed to ensure legislation is passed. House and Senate lawmakers will vote on measure granting China permanent normal trade relations with U.S - regarded as key to easing China's WTO entry.(RXM)
0827 [Dow Jones] Nikkei down 1% to 18952 on futures-led selling after falls on U.S. stock markets; high-priced tech and telecom issues leading market down. "The market will test the downside today," says Horoichi Nishi, equities manager at Nikko Securities, who sees range of 18800-19000 for rest of day.(IJM)
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