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Market Open: Hong Kong stocks seen higher on hopes of liquidity boost

Hong Kong stocks are seen higher as investors speculate that weak third-quarter growth data will show that China's gross domestic product (GDP) growth continued to slow, increasing pressure on Beijing to stimulate the world’s second largest economy.

PUBLISHED : Thursday, 18 October, 2012, 8:17am
UPDATED : Thursday, 18 October, 2012, 3:06pm

Hong Kong stocks are seen higher as investors speculate that weak third-quarter growth data will show that China's gross domestic product (GDP) growth continued to slow, increasing pressure on Beijing to stimulate the world’s second largest economy.

Chinese Premier Wen Jiabao said late on Wednesday that the nation's economy are "relatively good" and "has started to stabilize", according to Xinhua News Agency, citing a meeting he held with industry leaders.

China is due to report third-quarter GDP figures on Thursday morning, and economists expect regulators to announce a cut in the reserve ratio requirement (RRR) if GDP growth is below 7.4 per cent.

Overnight, the Standard & Poor's 500-stock index closed up 5.99 points, or 0.41 per cent, to close at 1,460.91. The Nasdaq Composite added 2.95 points, or 0.10 per cent, to 3,104.12. In London, the FTSE-100 Index added 40.37 points, or 0.69 per cent, to end at 5,910.91.

Hot Stocks of the Day:

Sino Land (0083.HK) and KWah International Holdings (0173.HK)
The two local developers won a tender to acquire the site above Long Ping MTR West Rail station for HK$1.708 billion on Thursday.

Next Media (0282.HK)

The firm controlled by media tycoon Lai Chee-ying, formally announced late on Wednesday that it has agreed to sell all its newspaper and magazine holdings in Taiwan for NT$17.5 billion (HK$4.64 billion) to a consortium led by entrepreneur Jeffrey Koo. The stock will resume trading on Thursday.

King Stone Energy (0663.HK)
The company said it has agreed to subscribe in cash for 1.56 billion new shares at HK$0.45 per share. The HK$663 million proceeds will be used to repay debt. The stock will resume trading on Thursday.

Changan Minsheng APLL Logistics (8217.HK)

The company said its net profit for the nine months to September 30 is expected to fall “considerably” from the year-earlier period.

Yuzhou Properties (1628.HK)
The company said it has entered into purchase agreement with several banks to issue US$250 million in senior notes with an interest rate of 11.75 per cent due 2017. The US$243 million in proceeds will be used to repay debt, fund land acquisition and commercial property development.

 

 

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