Six Major Financial News In Hongkong

1. the HSBC Group sells $1 billion 230 million for general insurance business.

00005-HK announced that it would sell general insurance business to AXA insurance AXA and QBE respectively, and its total assets amounted to $1 billion 230 million, respectively, with its 00011-HK.

Xia Weixin, chief executive of AXA, said that a joint research team will be set up in the next two or three months to study the best mode of operation in the future. When the acquisition is completed, it will receive all the general insurance business employees in Hong Kong, Singapore and Mexico, including 240 in Hongkong.

After the completion of the acquisition, the total number of employees in Hong Kong will increase to 1500, and the terms of employment will remain unchanged.

After its general insurance business in Hongkong, HSBC increased its market share in general insurance business to 13%, ranking first.

AXA, chief financial officer of AXA Asia, said that the total premium income involved in the paction was 253 million euros, which was considered profitable for the paction. Francois-ValeryLecomte

The company's goal is to become the world's three largest insurance company in 2015, believing that this acquisition can enable the company to achieve its goal ahead of schedule.

Chen Songsheng, chief executive officer of AXA insurance, Hongkong, said that there was no fear of the loss of customers after the merger of the general insurance business, and that the contents of the customers' policies would not change.

When asked whether the acquisition period would be short and whether it would affect long-term development, Chen Songsheng responded that there was a 10 year long term cooperation agreement between the group and HSBC, not worrying about the long-term development of Hong Kong's business.

2. electricity industry annual profit increased by 26% to 9 billion 75 million yuan, Hong Kong business profits retrogression

Electric power industry (00006-HK) announced its annual performance, with a total profit of 9 billion 75 million yuan, an increase of 26%, and a year-end dividend of 1.7 yuan, together with an interim dividend of 2.32 yuan a year.

Total capital expenditure in Hongkong amounted to 2 billion 890 million yuan in the year, up 19% from the 2 billion 431 million yuan in 2010, and the total loan amount at the end of the year was 23 billion 626 million yuan, including unsecured bank loans and issued bonds.

In addition, the amount of unused bank credit is 6 billion 500 million yuan, and bank deposits and cash are 6 billion 121 million yuan.

Hongkong business, including HEC, has a profit of 4 billion 512 million yuan, which is 3% lower than the 4 billion 659 million yuan in 2010, mainly due to the increase in interest expense of the HEC and the year-end balance of fuel price adjustment, resulting in a corresponding increase in the deferred tax adjustment. Overseas business profits recorded a 4 billion 563 million yuan, a 80% increase over 2010, mainly from the October 2010 UKPN acquisition and the profits from the acquisition of Seabank in June of the same year.

3. Chong Hing Bank made more than 17.49% last year.

Chuangxing bank pointed out that the core business and overall financial stability, bad loan ratio and asset quality were good, and its capital adequacy ratio and liquidity ratio were much higher than the relevant statutory requirements. During the period, the capital adequacy ratio was maintained at 15.44%, while the core capital ratio was 10.58%.

Chen Kaijie, general manager of Chuangxing bank's finance and capital management department, said that the net interest margin of the bank narrowed 4 points last year to 1.17%, an improvement over the 1.11% of last year's interim results announcement.

For the future trend of net interest margin, he pointed out that if the deposit competition is still fierce, the deposit rate will remain at the level of 11 and December last year, and the net interest margin will not be narrowed further by narrowing 10 ideas.

He pointed out that the deposit rate jumped at the end of last year, while the effect of the loan rate increase was lagging behind. In the future, the loan interest rate will be raised according to the market fund situation. However, the adjustment pressure in 1 and February is not great.

Liu Huimin, managing director and deputy chief executive, said that mainland funds continued to be scarce, and that the mainland's monetary policy would not relax rapidly this year. So there are still many opportunities for loan business. It is expected that double-digit growth will continue this year.

The bank has no plan to lay off staff, and the logistics numbers will remain stable, while front-line staff will depend on market conditions.

He pointed out that the staff of the bank will receive a pay raise, but it has not been decided yet.

4. Leah retail profit 166 million increased by 22%, plans to buy before next year.

Leah, chief executive officer of the retail business of Hongkong, said that the group's budget for the three year plan from 2011 to 2013 has at least one acquisition activity. Currently, it is looking for a target, mainly located in the convenience stores or bakery shops located in Hongkong or the mainland. If the buyer's business is close to convenience stores or bakery shops, it can also be considered.

As at the end of last year, the group held 700 million yuan in cash and no bank loans, so the amount could be as high as 1 billion yuan if the purchase was made.

Yang Libin stressed that the annual cash flow of 200 million, even if the acquisition of 1 billion, will not affect the dividend payout ratio, and can maintain the 65% dividend payout ratio.

Yang Libin said at a press conference that the group increased 17 stores in China and Hong Kong last year, reaching 543, and is expected to increase to 600 this year, mainly depending on rent and economic conditions.

5.ASM Pacific profits increased by 0.74%, gross profit margin fell 10%

ASM Pacific (00522-HK) announced a net profit of 2 billion 898 million yuan in the past year, an increase of 0.74% compared with the same period last year, sending a final interest rate of 0.8 yuan.

Li Wei, chief executive of ASM Pacific (micro-blog), said that gross margin fell 10% last year because the new acquisition of SMT business has dragged down gross margins, coupled with the rise in precious metals and copper prices, leading to a loss in the lead frame business.

Since the second half of last year, the interest rate of semiconductors has narrowed, but he believes that the cost of precious metals and copper in the lead frame business can be passed on to customers, believing that the loss to profit is not far away, and this year will strive to reduce the overall cost and believe that the gross interest rate can be maintained.

This year, semiconductor business has recovered momentum. New orders in the first two months have improved. We need to observe the first quarter before we can fully determine.

Li Weiguang also said that the Japanese business affected by the earthquake last year will see a momentum of recovery this year. If the central government relaxes the money, it believes that this year's overall business will be better than that of last year.

This year, capital expenditure is about $101 million, similar to last year's US $104 million.

6. Yuyuan Industrial total capital expenditure for the year amounted to US $280 million.

Cai Naifeng, managing director of Yuyuan industry, said after last year's general meeting, European sales increased by 15% and the US grew by 1.7%. It is expected that sales will continue to grow this year, but the growth will slow down.

In addition, due to the Lunar New Year holiday, the number of factory days in the mainland decreased. Last October to January this year, the group's overall sales grew by only 8%.

Li Yinan said after the general meeting of shareholders, as of the end of last year, the order price recorded a 12% increase, mainly due to wage increases, orders also increased, but will not pass all the cost to customers, new orders recorded a 10% increase, it is expected that the second quarter will not fall.