Shanghai drops on IPO fears, China car sales up 34 pct in May
Mainland markets fell the most in almost two months on concerns that a moratorium for IPOs will be lifted next week, and could destabilise the market.
Hong Kong stocks rose on bullish May economic data, including the 8.9 percent increase in industrial output and 15.2 percent increase in retail sales.
The Shanghai Comprehensive Index declined 1.91 percent to 2743.76, ending the week with a loss of 0.37 percent. The small and medium enterprises SME Comprehensive Index lost 1.97 percent to 4174.57.
The Hang Seng Index climbed 0.52 percent to 18889.68, ending the week with a 1.13 percent gain. The Hang Seng Growth Enterprises Index retreated 0.31 percent to 595.94. The Hang Sang China Enterprise Index slid 0.16 percent to 11062.88.
Taiwan's TAIEX Index dropped 1.81 percent to 6448.23.
Poly Real Estate Group Co. (SH:600048), China’s second-largest developer by market value, climbed 0.68 percent after the developer said in a stock exchange statement yesterday its managers have never met Chen Shaoji, the sacked mayor of Shenzhen. The stock dropped yesterday amid concerns that the company was involved with Chen, who is currently being investigated for corruption.
Minmetals Development Co. (SH:600058), a unit of China’s biggest state-owned metals trader, added 3.78 percent. Parent China Minmetals Group received OZ Minerals Ltd.’s shareholders’ approval to sell US$1.39bn of assets.
New lending doubles in May
Industrial and Commercial Bank of China (SH:601398;HK:3198), the world’s largest lender, lost 2.09 percent on Shanghai trading but added 2.35 percent on Hong Kong trading. New lending in China doubled in May from the previous year to RMB 664.5 billion, the central bank said on its web site.
Car sales up 34 percent
Hong Kong listed car makers surged after China car sales jumped by the most in three years, with 1.12 million units of vehicles were sold in China in May, a 34 percent increase on the same period last year. China imported a total number of 116,000 units of vehicles in the first five months this year, down 31.9 percent year-on-year.
Brilliance China Automotive Holdings (HK:1114) surged 15.38 percent. Great Wall Motor Co.(HK:2333) advanced 9.93 percent. Dragon Hill Wuling Automobile Holdings (HK:0305) added 7.5 percent. Qingling Motors Co. (HK:1122) climbed 5.41 percent.
Vaccine makers rise as H1N1 declared pademic
Mainland-listed animal vaccine makers rose as the World Health Organization declared H1N1 the first influenza pandemic since 1968.
Guilin Layn Natural Ingredients Corp.（SZ:002166）and Daan Gene Co.,（SZ:002030）surged to the 10 percent trading cap. Hualan Bioengineering (SZ:002007)rose 7.64 percen. Apeloa Company Limited（SZ:000739）climbed 5.42 percent.
Shenzhen Neptunus Interlong Bio-Technique Co. (HK:8329) surged 9.34 percent after announcing that it’s in talks with a Chinese government laboratory for joint development of a vaccine for the H1N1 influenza virus.
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