Stocks slide 2% on profit-taking
Market likely to continue to rebound on the back of reforms, boosts
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 firstname.lastname@example.org 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.”
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.