China Realty Stocks Advance; Rusal IPO Delayed

Home builders and property developers gained on the expectations that China will maintain loose monetary policy. Stocks were mixed in the region. Nine companies open their initial public offering subscription in Shanghai this week. However, the Rusal IPO may be delayed till the next year.

Stocks in Hong Kong fell as gold and energy futures dropped, while Shanghai stocks climbed on the news Beijing will keep its current monetary regime intact.

Also nine Initial Public Offers will open subscriptions on the Shanghai and Shenzhen stock exchanges this week. United Co. of Rusal IPO many be delayed in Hong Kong as the exchange demands more information on its debt. The news was first reported by Bloomberg News.

In Hong Kong trading Hang Seng Index fell 0.8% or 173.19 to 22,324.96, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, dropped 0.8% or 103.25 to 13,358.38. In Shanghai trading, CSI 300 Index rose 0.7% or 25.34 to 3,668.83.

Daily turnover on main-board fell to HK$60.9 billion from HK$74.04 billion on Friday.

China to Continue Lose Monetary Policy

Xinhua News Agency reported that the Central Economic Work Conference said today Beijing will continue to adopt the proactive fiscal policy and “moderate” policy next year.

The conference was attended by China’s Premier Hu Jintao, who is also the secretary general of the Central Committee of the Communist Party of China.

Economists note that they believe the country’s economy will expand faster than 8% target set by the government.

In addition, China Business News said the focus of the policies is now shifting from state-led investment to promoting consumer spending and private investment.

Gainers & Losers

Property stocks rose in China on expectations that Beijing will maintain its current loose monetary policy framework. China Vanke gained 2.7% to Rmb 2.29.

Commodity stocks fell as gold prices slid 4.2% to $1,169 per ounce and crude oil prices tumbled 0.5% to $76.1 per barrel. Zijin Mining fell 1% to Rmb10.63 and Shandong Gold dropped 3% to Rmb84.37.

Also in Hong Kong Zijin Mining slipped 5% and Realgold Mining decreased 3%.

Aluminum Corp of China tumbled 2% and Jiangxi Copper plunged 2.6%.

Yanzhou Coal Mining jumped 2% to Rmb24.63 after announcing that regulatory authorities in China have approved its planned acquisition of Australian miner Felix Resources Ltd.

Kweichow Moutai climbed 3.3% to Rmb176.53 after it said that it plans to increase the price of its products by 13% beginning 2010.

In Hong Kong trading, Foxconn International rose 17% to HK$8.30 as brokerage Morgan Stanley raised its target price to HK$9.80 from HK$7.50.

China Starch edged up 14.8% to HK$1.24 after it said it plans to double its corn starch production capacity to 1.5 million tons through mergers and acquisitions.

China Gas Holdings jumped 6.4% to HK$3.64 as the South China Morning Post noted the company intends to sell its share in Shanghai PetroPower to PetroChina.

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