Shanghai Composite & Hang Seng were up today. However, Shanghai was down 6.13% for the week while the Hang Seng finally stopped hitting new lows and posted a 3.16% change for the week. All sectors on the Hang Seng were up with only 4 of the 50 in the red:
- Beer distributor China Resources Beer Holdings, HK 291, market cap $3.9B;US down 2%. Sold non-beer holdings in 2015 to concentrate on beer only. Brands include Snow & Kingway and 20 year cooperation with SABMiller.
- Real estate developer and manager Hang Lung Properties, HK 101, market cap $8.5B US; down 1.7%. This mall operator reported a 56% drop in core earnings on Thursday and cut the dividend. South China Morning Post
- Real estate developer and manager Henderson Land Dev., HK 12, market cap $18.4B US; down 1.75%. Interim report issued 9/11/2015 showed 6 month revenue increase of 16% whittling down to a “reported profit” increase of just 4%.
- Food product company Want Want China, HK 151, market cap $8.5B US. Last semi-annual report, despite improved margins thanks to lower commodity input prices, 6 month revenue declined by 1.9%; EBITDA dropped 3.3% Bought back 64.2million shares in first half. Special note: 99% of borrowing in US$.
The yuan finished down against the dollar just -.05% for the week, with China vowing to maintain, Reuters. Apple, AAPL and Alibaba, BABA revealed the weakness in the Chinese consumer and the roadblocks in the transformation to a consumer-oriented economy.