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HK Hot Stocks- Lilang falls on debut; SJM down after bond issue

Published: 24 Sep 2009 19:03:54 PST

HONG KONG, Sept 25 - By 0243 GMT, the benchmark Hang Seng Index <.HSI> was down 0.96 percent at 20,847.86. The China Enterprises Index <.HSCE> of top locally listed mainland Chinese stocks lost 0.94 percent to 11,933.84, while the Shanghai Composite Index <.SSEC> had edged down 0.50 percent to 2,839.301.

Here are some of the stocks on the move in early trade:

* Shares of menswear retailer China Lilang <1234.HK> fell to as low as HK$3.63 on their trading debut, 6.9 percent below their issue price of HK$3.90. They steadied at HK$3.80 by 0226 GMT.

Its debut came a day after Metallurgical Corp of China (MCC) <1618.HK> marked Hong Kong's worst debut this year. MCC shares, which fell as much as 13 percent on Thursday, rebounded 3.2 percent to HK$5.79.

Brokers said the disappointing performance of MCC soured confidence for both IPOs and the stock market, and might dull upcoming IPOs.

* SJM Holdings <0880.HK> fell 5.2 percent to as low as HK$4.23, its lowest since Sept 15, after the casino operator announced a plan to issue HK$2 billion ($258 million) in Hong Kong dollar-denominated zero-coupon bonds due in 2015, convertible into SJM shares at a 20 percent premium over the previous close at HK$5.35 each. The proceeds will fund capital expenditure for Macau developments and for corporate purposes.

* Real Gold Mining <0246.HK> fell 17.5 percent to as low as HK$9.32 before steadying at HK$9.66, still down 14.5 percent from the previous close. The gold producer said it planned to sell 105 million new shares to its controlling shareholder at a 15 percent discount at HK$9.60 each, raising capital to fund the development of its mining and exploration activities, and for the acquisition of gold mining and exploration projects.

* Electrical appliance store operator GOME Electrical <0493.HK> fell 1.5 percent to HK$2.03 after it said it had repurchased 1.33 billion yuan worth of convertible bonds through an over-the-counter purchase, reducing the amount of convertible bonds outstanding to 3.27 billion yuan.