6:00AM New York, 6:00PM Hong Kong - Hang Seng declines 20.5% in the first half.

Market sentiment

In Hong Kong trading Hang Seng Index edged up 0.27% or 59.66 at 22,102.01, declining 20.3% in the first half of the year, and China Enterprises of Hong Kong listed mainland shares, or H shares, rose 0.81% or 95.33 at 11,909.75. In Shanghai trading, CSI 300 Index slumped 0.86% or 24.20 at 2,791.82.

Daily turnover on main-board was HK$53.06 billion compared with HK$65.03 billion on Friday last week.

China Tightens Supervision

Xinhua News Agency reported on its Website today that it learnt from the China Securities Regulatory Commission yesterday that joint efforts will be made by 12 departments including the People’s Bank of China and the China Banking Regulatory Commission to boost supervision of listed companies.

The report notes that the supervision system on the listed companies developed by CSRC is expected to integrate with corporate credit tracking system developed by the central bank.

MNCs Sign $3.5B Investment in Sichuan

The People’s Daily online reported today on its Website that 60 multinational corporations have signed 18 cooperative projects worth US$3.5 billion with Sichuan.

The 60 multinationals were invited by the Sichuan Provincial Government to take part in the Sichuan investment opportunities.

Some of the companies include General Motors., Tyco Electronics, Diageo, Wal-Mart, Siemens (China) Limited, Honeywell China Co., Procter & Gamble (China) Limited, Shell China Holdings Ltd., Sony China Limited, and Coca-Cola (China) Beverages Ltd.

Separately, the National Bureau of Statistics reported on Friday last week that China’s industrial companies reported profits increased 20.9% year-on-year in the first five months of the year to Rmb1.1 trillion.

LSE to Attract 20 Chinese Companies

China Daily reported on Saturday that the Lord Mayor of the City of London Alderman David Lewis said there were 20 Chinese companies to be listed on the London Stock Exchange by 2010, while bilateral trade is expected to advance from the current US$4.5 billion to US$6 billion by 2010.

According to Lewis, the listing is part of the deal achieved in the first China-UK Economic and Financial Dialogue held in mid-April in Beijing.

The London Stock Exchange has 74 companies listed from 20 countries of which 17 joined the bourse last year and raised $19 billion.

Gainers & Losers

Foxconn International dropped 5.3% and 54% in the January to June period.

HSBC Holdings shed 0.8% on expectations that global credit losses will continue. However, other financial stocks gained. China Construction Bank jumped 1% and Bank of Communications rose 1.3%.

Hutchison Whampoa advanced 2.1% after market watchers said the company's 3G business is likely to break even this year.