Hong Kong-listed mainland banks fell roughly 3.4 percent on
Monday, the first trading day since the mainland's banking
authority raised the deposit reserve ratio, a move that aims to
drain the market's excess liquidity.
The share price of the country's top lender, the Industrial and
Commercial Bank of China, slid 3.43 percent to HK$4.78, Bank of
China dropped 3.01 percent to HK$4.19 and China Construction Bank
slipped 3.36 percent to HK$4.89.
China Merchants Bank, the nation's most profitable bank with the
highest share price, also fell 3.35 percent to HK$16.14.
Hong Kong-based analysts ascribe the dive in banking stocks to
the central bank's new policy on the deposit reserve ratio.
This is the fourth time in the past seven months that the
central bank has lifted the reserve ratio to curb excess capital in
the banking system.
One of Hong Kong's largest listed companies, Hutchison Whampoa
Ltd, whose long awaited US$18 billion unit sale caused a huge stir
in both the Hong Kong and India markets, has finally come up with a
confirmed timetable for picking bidders.
The company, which is headed by Li Ka-shing, the wealthiest man
in China, is selling a controlling stake in its Indian mobile
telephone unit, Hutchison Essar.
Market sources close to the deal said the group will select a
preferred bidder before the Spring Festival holiday that falls in
the middle of next month.
Hutchison Whampoa has attracted four interested parties so far
from domestic and foreign bidders who valued Hutchison Essar at
between $14 billion and $18 billion.
Hong Kong International Airport could take a stake of nearly 50
percent in Zhuhai Airport, the smallest in both passenger numbers
and cargo volumes among the five airports in the Pearl River
Delta.
The two airports have agreed to set up a joint-venture, Hong
Kong-Zhuhai Airport Management, and Zhuhai Airport said it was
willing to offer as much as a 49 percent holding to its bigger peer
in Hong Kong.
The chief financial controller of Hong Kong airport said the
airport had not decided how big a stake it wants to own.
(China Daily January 11, 2007)