Asian Markets Overview of April 7: CCB (HKG:0939) (SHA:601939) to Expand Overseas Operation

Asian markets opened flat this morning while Wall Street overnight closed with little change after the US central bank's minutes eased concerns over rate hike. Yesterday Australian stock market touched an 18-month high despite the Reserve Bank of Australia raised official rate by 25 basis points. Japan's Nikkei 225 Tuesday dropped 0.5 per cent on profit-taking selling. China's Shanghai Composite was nearly unchanged while Hong Kong market was closed for public holiday.

Company News

Kumho Tire Co. (SEO:073240) said it is in talks to supply tires to BMW AG. The company, South Korea's second largest tire maker by sales, has supplied original equipment tires to five domestic car makers as well as global car manufacturers including Germany's Volkswagen and Mercedes-Benz. It will be the second South Korean tire company to supply tires to BMW following Hankook Tire Co (SEO:000240). But Kumho Tire said the two parties have yet to sign a contract.

China Construction Bank Corp. (HKG:0939)(SHA:601939), the country's second largest lender by market capitalization, plans to set up branches in Canada, Taiwan and Brazil over the next two years, as more and more Chinese companies are feeling the need for financial services while going abroad. The bank has an overseas network of 60 outlets. Separately, CCB is planning to sell shares to raise about 75 billion yuan of capital this year, said sources. The bank may raise as much as 45 billion yuan in a private placement on the local share market in Shanghai and 30 billion yuan in a rights offer in Hong Kong.

Taiwan based Smart-phone maker HTC Corp. (TPE:2498) posted a 3.1 per cent rise in quarter net profit due to better-than-expected sales. Its March sales jumped 33 percent over the same month a year earlier. The first-quarter net profit was NT$5.03 billion, up from NT$4.88 billion a year earlier, as consumer demand began to improve last year with the global economic recovery. HTC's growth in the U.S. market is outpacing other smartphone makers this year. The company also plans to introduce six models with its Chinese partner, China Mobile Ltd.(HKG:0941), for the China market this year.


Related Companies

Kumho Tire Co., Ltd.
      

HTC Corporation
      

Hankook Tire Company Limited
      

China Mobile Ltd.
      

China Construction Bank Corporation