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5 years ago
Hong Kong shares may slip as investors hold back before Fed
September 13, 2012 / 1:06 AM / 5 years ago

Hong Kong shares may slip as investors hold back before Fed

HONG KONG, Sept 13 (Reuters) - Hong Kong shares could fall
for the first time in six sessions on Thursday as investors hold
back ahead of the end of a two-day U.S. Federal Reserve meeting
where policymakers could announce more stimulus measures.
    China said on Wednesday it would pay export tax rebates
faster and grant more loans to exporters, as well as increase
export credit insurance to small companies, in the latest move
to prop up growth in the world's second-largest economy.
 
    Hong Kong's Sun Hung Kai Properties is expected to
post corporate earnings for the fiscal year that ended in June.
    On Wednesday, the Hang Seng Index stretched gains
into a fifth day, climbing 1.1 percent to 20,075.4. The
benchmark last rose five straight days in January. Its previous
six-day winning streak was recorded in October last year.
    Strength was capped by chart resistance around 20,150, which
had restricted the benchmark index's rise for more than a week
before it slid about 1,000 points in the two weeks following
Aug. 24. 
    Elsewhere in Asia, Japan's Nikkei was down 0.2
percent, while South Korea's KOSPI was down 0.1 percent
as of 0052 GMT.
    
    FACTORS TO WATCH:
    * SouthGobi Resources Ltd  fired Chief
Executive Alexander Molyneux just more than a week after
Aluminium Corp of China Ltd (Chalco) dropped a $926
million bid for the company that strained its relationship with
the Mongolian government. The coal miner named Ross Tromans, who
was general manager marketing at Rio Tinto Coal Australia, as
its new CEO. 
    * UC RUSAL Chief Executive Oleg Deripaska said
aluminium producers need to cap their output as downward
pressure on prices is likely to continue for the rest of this
year and into 2013. 
    * Standard & Poor's Ratings Services lowered the
foreign currency long-term corporate credit rating on Aluminum
Corp Of China (Chalco) to 'BBB-' from 'BBB' with a
negative outlook. It said Chalco's operating performance was
much worse than expected due to low profitability, subdued
aluminum prices, and high production costs. 
    * Kaisa Group Holdings Ltd said it planned to
issue $250 million of 12.875 percent senior notes due 2017,
raising capital to fund property projects, refinance existing
indebtedness and for general corporate purposes. For statement,
here
    * Hong Kong Exchanges and Clearing Ltd said the
board has approved the renewal of the employment contract of
Charles Li as the Chief Executive of the HKEx for a further
three-year term from Oct. 16, 2012 to Oct. 15, 2015. For
statement, here

 (Reporting by Clement Tan and Donny Kwok; Editing by Chris
Gallagher)

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