Hong Kong Stock Mixed; China Shipping Rises as CyberWorks Falls
By Yeong Choy Leng
Hong Kong, March 30 (Bloomberg) -- China stocks traded in Hong Kong rose, led by China Shipping Development Co., as investors bet companies' earnings will be less affected by a slowdown in the U.S. economy.
``People are going back to the old economy stocks,'' said Joe Zhang, head of China research at UBS Warburg LLC. ``Both consumption and exports in China are also blazing trails in the first two months of this year. It's one of the brightest spots in the world.''
China Shipping also rose after the nation's biggest domestic cargo shipper reported better-than-expected earnings.
Leaving the market mixed, Pacific Century CyberWorks Ltd. fell as investors doubt the company's possible move to ask Web site users to pay for entertainment will help boost earnings. The company said they may charge subscribers, after revenue from advertising and online shopping didn't meet the bills.
The Hang Seng Index rose 19.93, or 0.2 percent, to 12,697.82. The Hang Seng China Enterprises Index, which tracks Chinese companies, gained 2.5 percent. In the broader market, 171 stocks rose, 171 fell and 383 were unchanged. Trade at HK$3.2 billion ($405 million) was a third the full-day average for the past three months.
The following is a list of companies whose shares are active.
China-related stocks rose. China Shipping Development Co. (1138 HK ), China's biggest domestic cargo shipper, rose 10 cents, or 9.3 percent, to HK$1.18. The company said 2000 profits more than doubled to 282 million yuan. PetroChina Co. (857 HK ), the listed unit of China's largest oil company, rose 4 cents, or 2.9 percent, to HK$1.40. Huaneng Power International Inc. (902 HK ), China's largest independent power producer, rose 27.5 HK cents, or 7.1 percent, to HK$4.15.
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, fell 20 cents, or 6.2 percent, to HK$3.05. The company may ask Web site users to pay for entertainment, after revenue from advertising and online shopping didn't meet the bills. The stock tumbled to a 19-month low yesterday after reporting a loss double analysts' worst forecasts.
``Unless they have a well-defined niche, it'll be difficult to secure a big clientele base, especially in the current market condition,'' said Herbert Lau, research director of Celestial Securities Asia Ltd.
China Merchants Holdings (International) Co. (144 HK ), controlled by China's transport ministry, rose 10 cents, or 1.9 percent, to HK$5.40. The company will invest 3.4 billion yuan ($411 million) in a Chinese port with Maersk and Sealand, Ming Pao Daily reported, citing managing director Zhao Huxiang.
China National Aviation Corp. (1110 HK ), a unit of China's airline regulator, rose 2 cents, or 1.7 percent, to HK$1.19. Its regional carrier unit, Hong Kong Dragon Airlines Ltd., said it will start a twice-weekly cargo service to Osaka in Japan on May 12.
Chinese Estates Holdings Ltd. (127 HK ), a mid-sized Hong Kong real estate developer that is 50.9 percent owned by the Lau family, fell 1 cents, or 1.2 percent, to 85 HK cents. Standard & Poor's today lowered its corporate credit rating on Chinese Estates to ``B+'' from ``BB-.'' S&P said the downgrade ``reflects the company's poor operating performance and debt-financed property acquisitions, which have resulted in weak cash flow protection measures and diminished financial flexibility.''
CLP Holdings Ltd. (2 HK ), Hong Kong's biggest electricity generator, rose 20 cents, or 0.5 percent, to HK$41. The company said it will pay $18.4 million for a 49 percent stake in a new coal-fired power plant in the central Chinese province of Shaanxi.
Cosco Pacific Ltd. (1199 HK ), the Hong Kong arm of China's biggest shipping company, rose 22.5 cents, or 5.2 percent, to HK$4.525. The company signed two memorandums of understanding with the port authorities of Dalian and Qingdao to operate ports there and is in talks with the authorities to develop a port in Yangshan near Shanghai. The company said yesterday 2000 net income rose 6.3 percent to $143 million from $134.1 million in 1999 as its ports handled more cargo. The earnings beat the average HK$140.6 million profit forecast by eight analysts in a Bloomberg News poll.
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