H.K. Stocks Mixed; Sinopec, China Shares Rise as Unicom Slides
By Yeong Choy Leng
Hong Kong, June 1 (Bloomberg) -- Hong Kong's stock index fell, led by China Unicom Ltd. after the publicly traded unit of China's second-largest telephone company added fewer subscribers in April than March.
Leaving the market mixed, China Petroleum & Chemical Corp. and other Chinese state-controlled companies rose as investors switched out of China's foreign-currency shares, the world's best performers this year, in favor of their Hong Kong peers.
The Hang Seng China Enterprises Index, which tracks the so- called H shares, rose 2.2 percent. China's Class B share indexes in Shenzhen and Shanghai surged 206 percent and 167 percent, respectively, this year.
``The rally nowadays is driven by liquidity from the mainland because the domestic shares had gained a lot, so the H shares and red chips are cheaper in terms of valuations,'' said Ben Kwong, a director at KGI Asia Ltd.
The Hang Seng Index slid 33.03, or 0.3 percent, to 13,141.38, and 4.5 percent for the week. In the broader market, 249 stocks rose, 260 fell and 214 were unchanged. Trade at HK$10.3 billion ($1.3 billion) was 16 percent more than the average for the past three months.
The following is a list of companies whose shares are active.
China-related stocks rose as they trade at a discount to their mainland Class B counterparts. Starting today, foreign currencies deposited in banks in China after Feb. 19 can be used to buy B shares. While China bans foreign currency outflows, some mainland investors can ask their Hong Kong relatives to buy Hong Kong shares. China Petroleum & Chemical Corp. (386 HK ), the country's top oil refiner, or Sinopec, rose 8 cents, or 5.4 percent, to HK$1.57. Dongfang Electric Machinery Co. (1072 HK ), which sells power generation equipment, surged 28 cents, or 15 percent, to HK$2.20.
China Unicom Ltd. (762 HK ), a unit of China's second-largest telephone company, fell 35 cents, or 2.8 percent, to HK$12.40. The company added 1.1 million subscribers in April, almost a fifth less than the 1.36 million users added in March, the company's Web site said.
China Bio-Medical Group Ltd. (140 HK ), a Hong Kong builder turned Internet company turned drugmaker, rose 2 cents, or 15 percent, to 15.5 HK cents. The company said it's not aware of any reason for its share price movement today. The company said yesterday it lost HK$447 million for the year ended Dec. 31, widening the loss of HK$164 million a year earlier.
CLP Holdings Ltd. (2 HK ), which supplies electricity to three-quarters of Hong Kong's 6.7 million people, fell 10 cents, or 0.3 percent, to HK$32.20. The company went ex- dividend, which means investors who buy the stock from today onwards won't be entitled to its first-half payout of 35 HK cents.
Digital China Holdings Ltd. (861 HK ), the computer distribution arm of Legend Holdings Ltd., rose 32 cents, or 8.7 percent, to HK$4 on its first day of trading. The company sold 88 million shares at HK$3.68 apiece, the top end of an estimated range, raising HK$325 million. Legend distributed the remaining 90 percent of Digital China's 845 million shares to its shareholders at the ratio of one Digital China share for every 10 Legend shares owned. Legend Holdings Ltd. (992 HK ), China's biggest computer maker, rose 5 cents, or 0.9 percent, to HK$5.40.
HSBC Holdings Plc (5 HK ), the U.K.-based parent of the city's two largest lenders, fell 50 cents, or 0.5 percent, to HK$96.50. HSBC plans to expand in the U.S. after it completes the integration of Republic National Bank of New York by the end of June, the Financial Times reported, citing the bank's president in the U.S.
Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, rose 25 cents, or 0.3 percent, to HK$84.25. The biggest Asian investor in European telecommunications said it will book a HK$30 billion ($3.85 billion) profit from the sale of its stake in VoiceStream Wireless Corp., giving it a fourfold return on the investment it made two years ago.
I-Cable Communications Ltd. (1097 HK ), Hong Kong's only cable television operator, rose 10 cents, or 2.1 percent, to HK$4.925. The company may take a controlling stake in Nasdaq- listed Web site operator Netease.com Inc., the Hong Kong Economic Times reported, citing unidentified people. The company declined to comment.
Lippo China Resources Ltd. (156 HK ), which owns a stake in HKCB Bank Holding Co. (655 HK ), rose 1.7 cents, or 8.5 percent, to 21.8 HK cents. HKCB, a small Hong Kong lender, rose 7.5 cents, or 2 percent, to HK$3.875. China Resources Enterprise Ltd. (291 HK ), which also owns a stake in HKCB, fell 5 cents, or 0.4 percent, to HK$12.20. China Resources said it plans to sell its stake in HKCB though it hasn't appointed an adviser and won't be rushed into a sale.
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, rose 2.5 cents, or 1 percent, to HK$2.575. The company will pay more than HK$800 million ($102.6 million) for Interplay Entertainment Corp., a U.S. video- game publisher, the Sing Tao Daily News reported, citing mcvhk.com, a European Web site. The company declined to confirm this report.
Riverhill Holdings Ltd. (8127 HK ), which develops mapping and geographical tracking software, surged HK$1.02, or 170 percent, to HK$1.62 from its initial offering price of 60 HK cents on its first day of trading.
Tsingtao Brewery Co. (168 HK ), which has bought 21 rival brewers in less than two years, extended yesterday's 4.9 percent gain, rising 22.5 cents, or 8.3 percent, to HK$2.925. The company said yesterday it plans to take over the largest brewery in Shaanxi province, more than doubling its production capacity in northwestern China.
Wharf Holdings Ltd. (4 HK ), which invests in real estate, transportation and cable television, fell 5 cents, or 0.3 percent, to HK$17.55. Earnings before interest, taxes, depreciation and amortization for Wharf's New T&T telephone unit has started to break even, the South China Morning Post reported, citing Tony Cheung, New T&T's marketing director.
Xinao Gas Holdings Ltd. (8149 HK ) rose 7 cents, or 4.6 percent, to HK$1.60. The company said it will spend an initial $2.1 million to build a pipeline network in China's northeastern province of Shandong to sell natural gas to households and factories.
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