Chaoda, Haier, Melco, Nine Dragons: Hong Kong Equity Preview

By Hanny Wan

Feb. 20 (Bloomberg) -- The following companies may have unusual price changes in Hong Kong trading. Stock symbols are in parentheses, and share prices are as of the last close.

The Hang Seng Index advanced 7.36, or 0.1 percent, to 13,023.36 yesterday. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese companies, added 0.7 percent to 7,266.24.

China approved a stimulus package for the nation’s food, paper, home appliance and other so-called light industries, the State Council said yesterday. The plan will also help boost domestic consumption and create more jobs, it said.

Chaoda Modern Agriculture (Holdings) Ltd. (682 HK) rose 1.6 percent to HK$5.62. China’s largest listed vegetable grower is seeking to raise as much as HK$415.7 million ($54 million) selling 80.4 million new shares at HK$4.94 to HK$5.17 each, according to a share sale document.

Haier Electronics Group Co. (1169 HK), a unit of China’s largest home appliance maker, dropped 2.4 percent to 82 Hong Kong cents.

Hong Kong retailers, Macau stocks: China’s Guangdong province may allow its residents to travel to Hong Kong and Macau more frequently, the Ming Pao newspaper reported, citing contents of a cooperation agreement between officials from the three governments.

Sa Sa International Holdings Ltd., Hong Kong’s biggest cosmetics retailer, was unchanged at HK$2.17. Giordano International Ltd. (709 HK), the Hong Kong-based operator of more than 800 clothing stores in mainland China, added 4.4 percent to HK$1.90.

Galaxy Entertainment Group Ltd. (27 HK), one of six casino license holders in Macau, climbed 4.4 percent to HK$1.18. Melco International Development Ltd. (200 HK), controlled by the son of Macau gaming tycoon Stanley Ho, rose 0.5 percent to HK$2.06.

China BlueChemical Ltd. (3983 HK): The producer of nitrogen fertilizers had its rating cut to “sell” from “buy” by Citigroup Inc., which said earnings will decline this year. The stock advanced 4.8 percent to HK$4.19.

Nine Dragons Paper Holdings Ltd. (2689 HK): Morgan Stanley cut its rating on the stock to “equal-weight” from “overweight,” saying the company needs to reduce its gearing further. Nine Dragons, China’s biggest maker of containerboard paper for packaging, climbed 0.8 percent to HK$2.63.

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net.