Skip navigation
Newswire

HK Hot Stocks-China Everbright at 1-month high

HONG KONG, Oct 24 (Reuters) - The following stocks were on the move on the Hong Kong exchange on Thursday. This is how they closed:

------------------------------------------------------------

HANG SENG INDEX ENDED DOWN 0.18 PCT AT 9,787.49

------------------------------------------------------------

**CHINA EVERBRIGHT HITS ONE MONTH HIGH**

Financial conglomerate China Everbright Limited closed up more than nine percent at a one-month high of HK$2.15 on bargain hunting spurred by speculation that China may soon approve a plan to allow mainland investors to buy overseas-listed stocks.

Securities trading is a major part of the group's business.

Analysts said the stock was seen as undervalued after falling 48 percent in the past six months.

Maggie Choi, an analyst at Sun Hung Kai Research, said the stock had a net asset value per share of HK$2.20 but this did not include a risk premium for possible exposure to bad loans.

The company is also riding on market talk that Beijing, during next month's Communist Party congress, may approve a plan to allow Chinese investors to buy overseas-listed stocks.

Affiliates China Everbright International and China Everbright Technlogy both ended more than five percent higher. -----------------------------------------------------

**KONG SUN SINKS ON SHARE PLACING**

Property investment firm Kong Sun Holdings Ltd ended down nearly 24 percent to HK$0.185, its lowest levels in more than three years, after it announced a share placement at a discount to its market price.

The shares hit an intra-day low at HK$0.164 -- its lowest level since May 1999.

The firm's major shareholders said they would place 81.9 million shares at HK$0.21, a 13.6 percent discount to Monday's closing price of HK$0.243.

The shares resumed trading on Thursday after being suspended on Tuesday.

Roughly one third of the proceeds of the share sale will be used for debt repayment and the rest will be used for working capital for the firm's operations in Hong Kong and China.

0320 GMT

-----------------------------------------------------------

**FIRST PACIFIC UP ON BARGAIN-HUNTING**

Southeast Asian-focused conglomerate First Pacific ended up 9.33 percent at HK$0.82 as bargain-hunting emerged on the stock, whose performance had lagged the benchmark Hang Seng Index lately.

The stock had drew selling after a plan to dispose some of its assets to a prominent Philippine family fell through and bomb attacks there and in Indonesia shook investors.

In October, First Pacific shares have lost about eight percent while the Hang Seng had gained over seven percent.

Traders said shares of the highly-geared firm were still under pressure in the short to medium term as concerns about it ability to sell its asset weigh on the stock.

0255 GMT

-----------------------------------------------------------

**TSINGTAO UP ON ANHEUSER-BUSCH NEWS**

China's largest brewer Tsingtao Brewery Co Ltd gained 4.2 percent to HK$3.725 on resuming trade as investors applauded news that the world's largest brewer Anheuser-Busch Cos Inc will boost its stake in the company.

Anheuser-Busch of the U.S. said on Monday that it will raise its stake in Tsingtao to 27 percent over seven years from the current 4.5 percent.

Tsingtao shares had been suspended since Tuesday.

Analysts said Tsingtao will be helped by Anheuser-Busch's management and technology.

Under the deal, Tsingtao said it will issue convertible bonds to Anheuser-Busch in three installments.

The first two tranches will be issued at HK$4.68 per new H-share and the third tranche at HK$4.45, representing a premium of 30.9 percent and 24.5 percent respectively to Monday's closing price of HK$3.575, the company said in a statement on Thursday.

The debt will be converted to equity over seven years, which will avoid any quick dilution in Tsingtao's bottom line.

0238 GMT

- - - -

**BRILLIANCE CHINA RECOVERS AFTER SLIDE ON ARREST WARRANT**

China's largest van maker Brilliance China Automotive Holdings Ltd fell in early trade after it said Chinese authorities had approved the arrest of its former chief Yang Rong for suspected involvement in economic crimes.

But the stock later reversed losses to close up two percent at HK$0.99.

Yang, ranked by Forbes magazine as China's third richest man, has said he is innocent, Hong Kong newspapers reported on Thursday.

Yang was also quoted as saying the arrest warrant was aimed at blocking an appeal he had lodged with Chinese courts to stop Liaoning province authorities from taking over Brilliance shares which he said belonged to him.

He has not been seen in public since June, after he was ousted as chairman of Brilliance China over what the firm said stemmed from differences with other shareholders. He remains an executive director.

In a Thursday statement, the company reiterated that Yang's personal affairs were not expected to have any effect on the company nor its units.

At the start of trade Brilliance shares had fallen 14.9 percent over the past three months.

0211 GMT

-----------------------------------------------------------

**SHANGHAI PETROCHEMICAL UP AFTER NET SURGES 477 PCT**

China's largest ethylene producer Sinopec Shanghai Petrochemical Corp ended up 0.97 percent at HK$1.04 after gaining 2.91 percent to HK$1.06 -- its highest level since September 12, after its nine-month net profit soared 477 percent.

The unit of China's oil giant Sinopec Corp reported a net profit of 487 million yuan (US$58.8 million) for the nine months to end-September after the market closed on Wednesday.

The firm cited robust economic growth and increased product prices for its solid results.

Its stock was extending a three percent gain on Wednesday.

Sinopec shares were unchanged at HK$1.24.

0209 GMT