Stocks slide 2% on profit-tak­ing

Mar­ket likely to con­tinue to re­bound on the back of re­forms, boosts

China Daily (Canada) - - LIFE - By SHI JING in Shang­hai andWANGWENin Bei­jing By REUTERS and BLOOMBERG

Jin Jiang is mov­ing to­ward its goal of be­com­ing a lead­ing mega ho­tel group in the world.”

Three Chi­nese com­pa­nies are plan­ning bids for Star­wood Ho­tels & Re­sort­sWorld­wide Inc, which operates the Sher­a­ton, Westin and W ho­tel chains, in what could be the big­gest-ever Chi­nese takeover of a United States com­pany.

Ho­tel gi­ant Shang­hai Jin Jiang In­ter­na­tional Ho­tels (Group) Co Ltd, Hainan Air­lines’s par­ent com­pany HNA Group China’s and stocks sov­er­eign fell wealthon Wed­nes­day,fund China with In­vest­menta late af­ter­noon Corp are in bout­the frayof profit-tak­ing­for Star­wood, push­ing ac­cord­ing ma­jorto me­dia in­dexes re­ports. deep into The the Chi­ne­sered. bids for Star­wood “The come fall close to­day on was the heel­spro­pelled of An­bangby profit-tak­ingIn­surance Groupafter the Co’s gains ac­qui­si­tionin re­centof the weeks,” land­mark said Xiao Wal­dorf Shi­jun, As­to­ria an ho­tel an­a­lyst in NewYorkat Guodu fromHil­tonHo­tels&Se­cu­ri­ties in Bei­jing.Re­sorts for $1.95 bil­lion in 2014.“With a lot of re­forms in Ac­cord­ingthe pipe­line to and Dealogic, of­fi­cial a econ­omy-boost­ing­mar­ket in­for­ma­tion steps provider,taken, should the mar­ket­the Star­wood­will re­main deal on ma­te­ri­al­ize,a re­boundin­git would track be in the the medi­um­largest ac­qui­si­tion­term, de­spi­teof aUS­com­pa­nyshort­term volatil­ity.”by a Chi­nese firm. Till date, The the CSI300 largest deal In­dex madeof by the a largest Chi­nese listed com­pany com­pa­niesin the US in is Shang­haithe $7 bil­lio­nand Shen­zhen Shuanghuifell 1.9 Group per­cent spent to for 3,524.92pork pro­duc­er­points, while Smith­field­the Shang­haiFoods Inc in Com­pos­ite2013. On In­dex Tues­day,lost 1.7 per­cent Star­woodto 3,375.20shares jumped points. 9.1 per­cent to close Amon­gat $74.81 the per most share, ac­tive the stocks big­gest in daily Shang­hai in­crease were sinceChina 2009, Ship­build­ing,tak­ing its mar­ket down value6.2 per­cent­close to $12to 11.27 bil­lion. yuan When ($1.77), con­tacted, Meiyan Jix­i­ang, Star­wood down re­fused3.9 per­cent to provideto 8.49 any yuan de­tails and about Hongx­ing the bid. Steel, up 3.6 per­cent to 4.36 How­ever,yuan. it was quite an­oth­erIn Shen­zhen,story for Shang­hai among Jin Jiang and HNA Group in the stock mar­ket. Shang­hai Jin Jiang In­ter­na­tional Ho­tels De­vel­op­ment Co Ltd, a sub­sidiary of the group, has been sus­pended from trad­ing. Hainan Air­lines Co Ltd, the listed com­pany of HNA Group, fell 0.74 per­cent to 4.03 yuan (63 US cents) per share.

Even though all the three in­ter­ested bid­ders de­clined to make any com­ment, their am­bi­tion for over­seas ex­pan­sion is quite ev­i­dent.

“Jin Jiang is mov­ing to­ward its goal of be­com­ing a lead­ing mega ho­tel group in the world,” said Li Yuebo, a se­nior an­a­lyst at Fuzhou-based In­dus­trial Se­cu­ri­ties Co.

Jin Jiang has been ex­pand­ing its pres­ence at home and abroad in the past few years. On Fri­day, it said it was buy­ing about 81 per­cent of Key­stone Lodg­ing Hold­ings Ltd for more than 8.26 bil­lion yuan. Key­stone Lodg­ing is well­known for its bud­get ho­tel chain such as 7Days. With this the ac­qui­si­tion,most ac­tive­lyJin Jiang traded be­came were China’s Tongling big­gest NFM, hote­lier which and dropped­moved into 7.6 the per­cent­global topto 4.13 five. yuan Ear­lier and this BOE year, Tech­nol­ogy,Jin Jiang down ac­quired2 per­cent Europe’sto 2.99 sec­ond­largestyuan.

The to­tal vol­ume of A shares traded in Shang­hai was 29.3 bil­lion shares, while the Shen­zhen vol­ume was 34.1 bil­lion shares.

In Hong Kong, Chi­nese main­land stocks headed for their big­gest loss in a month as in­vestors weighed de­clin­ing earn­ings from Ts­ing­tao Brew­ery Co to Jiangxi Cop­per Co as UBS Group AG cut its fore­cast for the na­tion’s growth.

The Hang Seng China En­ter­prises In­dex re­treated 1.6 per­cent to 10,540.62 points. Sixty-nine per­cent of the Shang­hai-listed com­pa­nies that have re­ported thirdquar­ter re­sults so far have missed an­a­lyst es­ti­mates, ver­sus 50 per­cent for the MSCI Emerg­ing Mar­kets In­dex.

“Earn­ings are look­ing pretty bad, par­tic­u­larly of com­pa­nies in tra­di­tional in­dus­tries,” said Wang Zheng, the Shang­hai-based chief in­vest­ment of­fi­cer at Jingxi In­vest­ment Man­age­men­tCon­tact the writ­er­sCo, whoat shi­jing@chi­nadaily.com.cnis keep­ing his hold­ings un­changed.and wang­wen@“There won’t be any pickup in chi­nadaily.com.cn­earn­ings through the year, so in­vestors have been fo­cus­ing Hu Yuanyuanon the­maticin Bei­jing in­vest­ment on con­tribut­eds­maller com­pa­nies.”to this story.

Earn­ings are look­ing pretty bad, par­tic­u­larly of com­pa­nies in tra­di­tional in­dus­tries.”

WANG HAIBIN / FOR CHINA DAILY DAVID PAUL MOR­RIS / BLOOMBERG

Pedes­tri­ans walk past The Westin St. Fran­cis ho­tel in San Fran­cisco, the United States. Three Chi­nese firms, in­clud­ing sov­er­eign wealth fund China In­vest­ment Corp, are in the fray for Star­wood Ho­tels & Re­sorts World­wide Inc, owner of the Sher­a­ton and Westin ho­tel brands. A mar­ket for dried meat prod­ucts in Qing­dao, Shan­dong prov­ince. Share prices of chicken feed pro­duc­ers and poul­try providers rose on Wed­nes­day on news that ba­con, sausages and other pro­cessed meats are car­cino­genic.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.