Hong Kong Stocks May Decline; Hutchison, China Mobile May Lead
By Yeong Choy Leng
Hong Kong, Jan. 10 (Bloomberg) -- Hong Kong stocks may fall, led by Hutchison Whampoa Ltd. and other telecommunications companies after Nokia Oyj reported slower-than-expected sales, crimping investors' appetite for similar companies here.
The Hang Seng Index yesterday rose 64.06, or 0.4 percent, to 15,500.59. The Hang Seng London Reference Index fell 0.2 percent to 15,397.70. U.S. mobile phone-related stocks such as Motorola Inc., Ericsson AB and U.K.'s Vodafone Group Plc fell along with Nokia, the world's largest cellular-phone maker.
China B shares, which foreigners can own, may fall. The Shanghai B-share index yesterday fell 0.7 percent to 86.34. In Shenzhen, the B-share index dropped 0.8 percent to 133.08.
The following is a list of companies whose shares may be active. Prices refer to yesterday's closing levels.
Hong Kong stocks:
Telecommunications-related stocks may fall along with their U.S. and U.K. counterparts. China Mobile (Hong Kong) Ltd. (941 HK ), China's No. 1 publicly traded mobile telephone company, was unchanged at HK$44.70. Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, rose HK$1.75, or 1.8 percent, to HK$98. Pacific Century CyberWorks Ltd. (8 HK ), Asia's second-largest Internet company, rose 5 cents, or 1 percent, to HK$4.925.
China Travel International Investment H.K. Ltd. (308 HK ), a unit of China's largest travel agency, may be active. The company said it agreed to sell its 23 percent stake in Hing Kong Holdings Ltd., a construction company, for HK$389 million ($49.9 million), Ming Pao Daily reported, citing unidentified people. The stock rose 4 cents, or 3.9 percent to HK$1.08, their highest level since Sept. 25. Hing Kong, suspended since Monday, last traded at 91 HK cents.
Sing Tao Holdings Ltd. (233 HK ), a Hong Kong newspaper publisher, may rise after being suspended since Monday. Global China Technology Group Ltd. (1105 HK ), a consumer electronics distributor, it would buy control of Sing Tao at HK$1.65 per share from Lazard Asia Ltd. This represents a 20 percent premium to Sing Tao's last traded price of HK$1.38. Global China rose 9 cents, or 18 percent, to 59 HK cents, its biggest one- day gain since Nov. 20.
China B shares:
Shanghai Tyre & Rubber Co. (900909 CH ) may fall after the company said in a statement that it will face heavy losses for 2000 because of increased competition and long-term debts. The company lost 258.9 million yuan ($31 million) in the first half of 2000, after losing 256.6 million yuan for all of 1999. The share fell 0.7 cents, or 1.8 percent to 37.5 U.S. cents.
Shenzhen Tellus Holding Co. (2025 CH ,) which makes automobile testing equipment and invests in the real estate and import and export trading businesses, may fall after the company said in a statement it is likely to report a loss for 2000 as it halted work on a real estate project and its business operations have not improved. The company lost 83.41 million yuan in the first half, compared with a loss of 27 million yuan in the same period a year earlier. The share rose 1 HK$0.01, or 0.5 percent, to HK$2.17.
Shanghai Kaikai Industry Co. (900943 CH ), which makes shirts and sweaters under the Kaikai Pai brand name, may fall on concern earnings per share will be diluted after the company said it has received approval to offer up to 50 million A shares for domestic investors at 5.6 yuan apiece. The share fell 1 cent, or 2 percent to 50 U.S. cents.
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