Trinity menswear IPO surges; bank sees 10 percent growth for China
In Hong Kong Tuesday, the Hang Seng Index slid 1.8 percent to close at 21,240, and China's Shanghai Composite Index rose 1.2 percent, ending the day at 3,114. The Tokyo Stock Exchange was closed today in celebration of Culture Day.
In Hong Kong, Trinity Ltd, the menswear division of mega clothing manufacturer Li & Fung, surged 49 percent on its debut today, soaring as high as 82 percent in intraday trading. Trinity provides luxury menswear to shops in Mainland China and operates 345 of its own stores in 37 different cities. It maintains several of its own high-end brands, including Kent & Curwen and Gieves & Hawkes.
After an announcement by Chief Executive Donald Tsang, signaling that the Hong Kong government was serious about the possibility of stepping in to stabilize the territory's red-hot property market, shares in local developers sank lower. Sino Land Ltd. (SNLAY) retreated 4.1 percent, Sun Hung Kai Properties Ltd. (SUHJY), fell 3.6 percent and New World Development Co. (NDVLY), slid 2.8 percent. Other real estate companies suffered smaller losses; Cheung Kong Holdings Ltd. (CHEUY) slipped 1.9 percent and Henderson Land Development Co. Ltd. (HLDVF) dropped 1 percent.
In China, investor sentiment was buoyed by a report released by China Construction Bank predicting that the country will enjoy economic growth in excess of 10 percent in the fourth quarter as a result of an increase in export orders and domestic buying, according to Xinhua News Agency. The report advised that the government should continue with existing stimulus measures to keep the economy moving.
Shares in Chinese gold mining companies rose today with gold Shandong Gold adding 2.8 percent, Zhongjin Gold Corp climbing 2.3 percent and Zijin Mining Group Co. Ltd. (ZIJMF) up 1.4 percent. Other commodity-related stocks also rose, with Aluminum Corp of China (Chalco) (ACH) rising 1.7 percent and Jiangxi Copper Co. Ltd. (JIXAY) adding 1 percent.
Chinese financial companies fared well today with Bank of Communications Ltd. adding 1.8 percent and CITIC Securities gaining 1.7 percent. According to Reuters, a report in the Shanghai Securities News claims that new bank loans worth up to 400 billion yuan ($58 billion) may have been approved in the month of October. With so much new money entering the economy, it's no wonder Chinese shares keep going up.