Commodities

Friday November 20, 01:48 AM
Hong Kong shares may extend losses; China banks eyed

HONG KONG, Nov 20 (Reuters) - Hong Kong stocks may decline for a fourth day on Friday, tracking losses on Wall Street, with Chinese banks such as ICBC (0349.HK - news)

in focus on reports Beijing may adjust banks' reserve requirements. The benchmark Hang Seng Index slipped for a third day on Thursday, shedding 0.86 percent to 22,643.16. The HSI had lost 1.3 percent since Monday, when it closed at a 16-month high. 'The market will undergo another consolidation after a correction in the U.S. stock market,' said Patrick Yiu, managing director at CASH Asset Management. 'The HSI willl have good support at the 22,400-22,500 level.' Investors sold U.S. shares after Bank of America (NYSE: IKJ - news) -Merrill Lynch (LGL - news) cut its 2010 growth outlook for the semiconductor industry and downgraded 10 stocks including Intel Corp (NASDAQ: INTC - news) . STOCKS TO WATCH: * GOME Electrical Appliances said it had om Nov 19 repurchased 498.4 million yuan ($72.99 million) worth of bonds due 2014 over-the-counter and the aggregate principal amount of the bonds remaining outstanding would be 2.775 billion yuan. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20091120/LTN20091120010.pdf * Chinese drug maker Guangzhou Pharmaceutical , whose A-shares had risen 20 percent from Nov 17-19, said it has no plans for any major asset restructuring, acquisition or distribution of shares within the next three months, while the H1N1 flu has had no significant impact on its operations. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20091119/LTN20091119450.pdf * BYD Co Ltd said its automobile business had maintained strong growth, with its gross profit margin increasing and its operating margin rising to 14.4 percent in the first half of 2009 from 9.5 percent a year earlier. It made the statement in response to report regarding its net profit margin decreasing. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20091119/LTN20091119440.pdf * Chinese television maker Skyworth said its China TV business unit achieved sharp 201 percent year-on-year growth in LCD TV sales in October, with total TV sales volume rising 34 percent and overall TV sales revenue surging 57 percent. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20091119/LTN20091119140.pdf * Department store operator Maoye International (0848.HK - news) said it would buy a parcel of land and properties for 337.5 million yuan for development into a department store complex, expanding its operations into eastern China. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20091119/LTN20091119412.pdf * China Mobile (0941.HK - news) , the world's biggest mobile carrier by subscribers, said on Thursday that its business had recovered to levels seen before the global downturn, as a rebounding economy drives international calling. * The Taiwan government is raising concerns that the buyers of AIG's Nan Shan Life insurance unit, China Strategic (0235.HK - news) and Primus Financial, are backed by China-sourced funds, complicating the approval process behind the $2.15 billion deal, an official said Thursday. ----------------------MARKET SNAPSHOT @ 2258 GMT ------------ INSTRUMENT LAST PCT CHG NET CHG S&P 500 1094.9 -1.34% -14.900 USD/JPY 88.92 -0.07% -0.060 10-YR US TSY YLD 3.3416 -- -0.024 SPOT GOLD 1144.05 0.05% 0.550 US CRUDE 77.46 0.00% -2.120 DOW JONES (news) 10332.44 -0.90% -93.87 ------------------------------------------------------------- > > Wall St drops on recovery concerns, tech rout > Dollar, yen advance as risk tolerance declines > US bonds rise as stocks slide feeds safety bid > Gold rises a shade on sentiment despite dollar rise > Oil falls more than $2 on equities, dollar (Reporting by Jun Ebias; Editing by Jonathan Hopfner)