HONG KONG NEWSPAPER HIGHLIGHTS - DEC 30, 2009

Highlights of today's newspapers:

SOUTH CHINA MORNING POST:

- After months trying to add a famous Asian investor to its planned US$2 billion Hong Kong share sale, indebted Russian aluminium giant Rusal has signed up Malaysian tycoon Robert Kuok as a cornerstone investor, according to people connected to the deal.

- Developers may no longer skip more than two consecutive floor numbers on new projects under guidelines being proposed by the Buildings Department.

- Beijing's decision to allow mainlanders to make direct investments in yuan in Hong Kong looks set to boost property sales and corporate acquisitions, but it risks fuelling asset bubbles, according to market watchers.

- Retailers are hoping the sector's latest sales data will show customers are resuming their shop-till-you-drop ways, with many reporting stronger than expected Christmas sales.

- China CNR Corp (SSE:601299) limped in with a lukewarm market debut after its US$2 billion initial public offering in Shanghai, signalling investor intolerance for high valuations as a flood of new equity awaits next year.

THE STANDARD:

- Zijin Mining Group (SEHK:2899), criticized by the mainland regulator for poor corporate governance, said it would make up for its shortcomings.

- Carpenter Tan (SEHK:0837) has become the best performing stock to list on the mainboard this year.

- A lower-than-expected price fetched at the government's land auction on Monday reflects a lack of urgency by developers to replenish their land banks, analysts said.

- Retail sales in Hong Kong last month rose by the most in 18 months, as falling unemployment and resurging stock and property markets encouraged consumer spending.

- Heavyweight IPO candidate UC Rusal has lured four heavyweight cornerstone investors to its initial public offering in Hong Kong, market sources said.

maz

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