Identifier
Created
Classification
Origin
09HONGKONG231
2009-02-06 11:49:00
UNCLASSIFIED
Consulate Hong Kong
Cable title:
Hong Kong Market Report: Hang Seng Up on Hope for U.S.
how-toVZCZCXRO4797 RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH RUEHVC DE RUEHHK #0231 0371149 ZNR UUUUU ZZH R 061149Z FEB 09 FM AMCONSUL HONG KONG TO RUEHC/SECSTATE WASHDC 6833 INFO RUCNASE/ASEAN MEMBER COLLECTIVE RUEHOO/CHINA POSTS COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS HONG KONG 000231
SIPDIS
STATE FOR EAP/CM AND EEB/OMA, TREASURY FOR OASIA
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD HK CH
SUBJECT: Hong Kong Market Report: Hang Seng Up on Hope for U.S.
Stimulus
UNCLAS HONG KONG 000231
SIPDIS
STATE FOR EAP/CM AND EEB/OMA, TREASURY FOR OASIA
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD HK CH
SUBJECT: Hong Kong Market Report: Hang Seng Up on Hope for U.S.
Stimulus
1. The Hang Seng Index was up 3.61 percent or 476.14 points today,
closing at 13,655. Chinese stocks led the rally, following positive
results in mainland Chinese markets and optimism that a U.S.
stimulus package would pass Congress. Hong Kong Shanghai Bank,
China Mobile, Industrial Commercial Bank of China and PetroChina all
gained more the five percent. HIBOR remained low with overnight
rates at 0.08 percent, one-month lending at 0.22 percent and
three-month rates at 0.83 percent.
Exports Fall as Manufacturers Brace for Slowdown
2. Hong Kong's total exports dropped by 11.4 percent year on year
(yoy) in December 2008. This follows a 5.3 percent decrease (yoy)
in November. Domestic exports (i.e., Hong Kong produced goods) fell
39 percent. The Federation of Hong Kong Industries announced it
expects 2,000-3,000 Hong Kong factories in the Pearl River Delta may
close after the Lunar New Year holiday. The Ming Pao reported
February 6 that Chen Hsong, one of the biggest Hong Kong
manufacturers in Shenzhen, had instructed workers to take one month
of leave before the Lunar New Year holiday as the factory (one of
China's largest manufacturers of plastic injection molding machines)
did not have enough orders to re-open for business.
Looming Roll-over Crisis?
3. Hong Kong Monetary Authority Chief Executive Joseph Yam told
Legislative Council members February 2 that Hong Kong companies face
the prospect of rolling over HKD 100 billion (US$13 billion) in
syndicated loans in 2009. As the financial crisis continues to
affect normal lending, Yam worried that Hong Kong borrowers could be
facing increased credit difficulties. He offered that the Hong Kong
government would consider the possibility of providing direct
support to Hong Kong enterprises unable to roll over existing loans.
Hutchinson Whampoa quickly issued a statement assuring investors
that it had settled HKD 40 billion in short-term loans. Standard
Chartered Bank insisted that Hong Kong banks would be able to take
up the slack by a slowdown of foreign lending.
SIPDIS
STATE FOR EAP/CM AND EEB/OMA, TREASURY FOR OASIA
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD HK CH
SUBJECT: Hong Kong Market Report: Hang Seng Up on Hope for U.S.
Stimulus
1. The Hang Seng Index was up 3.61 percent or 476.14 points today,
closing at 13,655. Chinese stocks led the rally, following positive
results in mainland Chinese markets and optimism that a U.S.
stimulus package would pass Congress. Hong Kong Shanghai Bank,
China Mobile, Industrial Commercial Bank of China and PetroChina all
gained more the five percent. HIBOR remained low with overnight
rates at 0.08 percent, one-month lending at 0.22 percent and
three-month rates at 0.83 percent.
Exports Fall as Manufacturers Brace for Slowdown
2. Hong Kong's total exports dropped by 11.4 percent year on year
(yoy) in December 2008. This follows a 5.3 percent decrease (yoy)
in November. Domestic exports (i.e., Hong Kong produced goods) fell
39 percent. The Federation of Hong Kong Industries announced it
expects 2,000-3,000 Hong Kong factories in the Pearl River Delta may
close after the Lunar New Year holiday. The Ming Pao reported
February 6 that Chen Hsong, one of the biggest Hong Kong
manufacturers in Shenzhen, had instructed workers to take one month
of leave before the Lunar New Year holiday as the factory (one of
China's largest manufacturers of plastic injection molding machines)
did not have enough orders to re-open for business.
Looming Roll-over Crisis?
3. Hong Kong Monetary Authority Chief Executive Joseph Yam told
Legislative Council members February 2 that Hong Kong companies face
the prospect of rolling over HKD 100 billion (US$13 billion) in
syndicated loans in 2009. As the financial crisis continues to
affect normal lending, Yam worried that Hong Kong borrowers could be
facing increased credit difficulties. He offered that the Hong Kong
government would consider the possibility of providing direct
support to Hong Kong enterprises unable to roll over existing loans.
Hutchinson Whampoa quickly issued a statement assuring investors
that it had settled HKD 40 billion in short-term loans. Standard
Chartered Bank insisted that Hong Kong banks would be able to take
up the slack by a slowdown of foreign lending.