Separately, the online edition also reported today that Hang Seng Bank yesterday acquired a 20% stake in mainland financial institution Yantai City Commercial Bank for HK$868 million to become the majority shareholder

Also Wing Lung bank will take 4.99% equity in Yantai, the second largest commercial bank in Shandong province.

The Standard also reported Jiangxa Copper will shutdown 43% or 300,000 tons of smelting capacity as a result of power outages until mid-February. Market analysts estimated that the closure will cost the company 2.3% or 12,500 tons of the expected output of 550,000 tons in 2007.

Realty stocks plummeted in Hong Kong as a result of the interest rate differentials between the Hong Kong Monetary Authority and financial institutions.

Most lenders slashed their prime rates by 25 basis points, while HKMA slashed its key rate by half percentage point.

Sun Hung Kai Properties tumbled 3.3% to HK$147.5 and Cheung Kong Holdings Limited shed 1.8% to HK$123.4 and Sino Land declined 8.5% to HK$21.5 as a result.

But a main land property lender, Agile Property, jumped 10% at HK$9.47.

Shipping lines gained on expectations that the Baltic Dry Index will continue to rise from last year’s slump. China Shipping Development surged 8.5% to HK$21.50, China COSCO increased 8.8% to HK$19.22, and Dry bulk shipper Pacific Basin advanced with a 12.2%.

Financial stocks gained as well. China Life gained 5.4 % to HK$29.5.