6:00 AM New York, 6:00 PM Hong Kong – Sinopec profit increased 5.5% in 2007 on 13% rise in sales.

Stocks in Hong Kong closed higher after a week of losses on a rise in commodities and earnings from Sinopec.

Market sentiment

In Hong Kong trading Hang Seng Index rose 1.29% or 314.13 at 24,578.76, and China Enterprises Index of Hong Kong-listed mainland companies, or H shares, edged up 2.15% or 282.31 at 13,419.88.

In Shanghai trading CSI 300 advanced 5.34% or 195.12 at 3,845.82.

Daily turnover on main-board was HK$99.47 billion compared to HK$91.50 billion on Thursday last week when the market closed for the Ching Ming holiday.

Sinopec earnings rise 5.5% on 13.4% increase in sales

Sinopec reported today that its net profit increased 5.5% to Rmb 56.53 billion in 2007 on 13.4% rise in sales to Rmb1.2 trillion and proposed to pay a full-year dividend of Rmb0.165 per share in cash.

Newly added proven reserve of oil and gas reached 647 million barrels of oil equivalent, while crude oil output advanced 2.3% to 290 million barrels and natural gas increased 10.2% at 282.6 billion cubic feet in 2007.


Hong Kong likely to be affected by an unresolved credit crisis

Xinhua News Agency reported yesterday that the Hong Kong Monetary Authority’s Chief Executive Joseph Yam said on a radio program on Saturday that using monetary policy will not benefit the community as raising interest rates will lead to higher production costs and mortgage payment.

Yam added that the U.S. dollar link has brought more benefits than disadvantages in the past 25 years and noted that if the U.S. slowdown and credit market turmoil remains unresolved, Hong Kong and the Chinese mainland economy will be affected. He also said the current investment environment is very volatile.

In addition, Yam explained that banks are asked not to offer mortgages that do not require repayment for loan principal in the first few years in a bid to avoid subprime mortgage problem in Hong Kong.

China sovereign funds buy stake in Total

China Daily reported at the weekend that a Chinese state-owned fund has acquired 1.6% stake in France based oil and gas company Total SA.

Finance industry tops best paid list

CRIENGLISH.com reported that Chinese graduates in the financial sector were the best paid last year, with an average annual income of Rmb 58,388 in 2007, followed by the IT and the medical industries.

According to the report''s regional breakdown, the annual income for Shanghai graduates declined to Rmb 37,007.

Experts believe that the phenomenon is linked to last year''s stock market boom and the industry''s tradition to pay higher salaries.