THE head of China's Securities Regulatory Commission, Liu Hongru, threatened on Monday to throw mainland-listed firms off the country's two stock exchanges if they flout compliance standards. Also on Monday, the official China Daily reported that the mainland would support the yuan for two more months, with new measures including setting limits on the amount of domestic currency allowed into swap markets. Demand from US institutions helped make Shanghai Petrochemical the most heavily traded stock on Monday, its debut in Hong Kong, when it closed at $1.61, at a three-cent premium to the issue price. After a sharp fall over the past four weeks, the Hang Seng Index finally staged a rally on Monday, jumping 107.75 points to 6858.08. However, brokers said the gains would be short-lived. On Tuesday, a Hongkong Bank report predicted that the territory's gross domestic product growth would be reduced by 0.4 percentage points this year and by a further 1.2 points next year, due to China's projected economic slowdown. However, the report said the territory would ultimately benefit from a successfully reformed mainland economy. Export growth in June plunged to 6.6 per cent, the lowest level in more than five years, to end a long run of surging trade expansion. Company results CAPITAL Automation Holdings reported a 12.5 per cent fall in profit to $17.7 million for the past year. Lolliman Holdings reported a net loss of 79.57 per cent to $17.18 million for the past year. Hongkong Daily News made a profit of $8.83 million, ahead of extraordinary items, for the nine months to March 31. Joyce Boutique recorded an increase in after-tax profits of 3.92 per cent to $34.03 million for the year to March 31. Quote of the week I think that for France to stay [in the ERM] after the Bundesbank action would be like for a battered wife to go back from the hospital to her husband,'' Financier George Soros in a telephone interview with Reuters Watary International Holdings' profits attributable to shareholders soared 320.52 per cent to $66.46 million in the year to March 31. Seapower Resources International saw net profit grow 31.6 per cent to $83 million over the year to March 31. Bank of East Asia reported yearly profits up 21.8 per cent to $198 million.