Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (599)	8/29/2003 11:53:10 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China's second gold listing more than doubles value August 29, 2003 By Bloomberg Shanghai - The share price of Shandong Gold Mining, the second Chinese gold company to list, more than doubled on its Shanghai debut after orders for the stock exceeded the amount available in the initial public offering by 1 271 times. The yuan-denominated Class A shares rose to 10.85 yuan (R9.67) yesterday from the 4.78 yuan initial offer price. The stock was expected to jump about 94 percent, according to the average forecast of three analysts. "Investors believe the company's earnings will rise, as gold is close to the hearts of Chinese people who regard the precious metal as recession-proof," said Fang Binyin, a trader at Guotai Junan Securities. Shandong Gold and larger rival Zhongjin Gold are among the Chinese gold producers that want to sell shares after the nation opened its market for the precious metal last October. Shandong Gold, one of China's biggest gold producers, raised 286.8 million yuan selling 60 million shares at 4.78 yuan each on August 13. The offer price is 17.84 times its 2002 earnings a share. Shandong Gold plans to use the proceeds to raise production at its Xincheng mine and to acquire a smelter from its parent. Average profit among domestic gold producers rose 60 percent in the first six months to 974 million yuan, the China Gold Association said. China, the world's fourth-largest gold producer and consumer, produced 189.8 tons last year and used 204 tons, according to the World Gold Council. China in October started its first gold exchange since the communists came to power in 1949, ending the government's monopoly on gold pricing. Only licensed Chinese firms, mainly producers and banks, are allowed to trade on the Shanghai gold exchange. Shandong Gold made a profit of 21.4 million yuan on sales of 144 million yuan in the first five months of this year. Profit last year rose 2.3 percent to 26.8 million yuan, as sales climbed to 283.2 million yuan from 250 million yuan. busrep.co.za