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Avichina leaps as billionaire buys more
Source: Bloomberg News |
November 17, 2011, Thursday
|
Print Edition
Print Edition
AVICHINA Industry and Technology, a Chinese maker of helicopters and trainer jets, surged in Hong Kong trading yesterday after billionaire Li Ka-shing bought shares worth HK$15.6 million (US$2 million).
The company rose 11 percent, the biggest one-day gain in more than a month, to HK$3.87 at the close. The shares had earlier gained as much as 17 percent, the steepest climb since November 2009.
Li, Hong Kong's richest man, bought 4.6 million shares at an average price of HK$3.396 a week ago, according to a filing.
"Li is like a magician," said Vivien Chan, an analyst at Sinopac Securities Asia. "Any stock purchase by him helps push up share prices."
AviChina has shed automaking assets and boosted its focus on aerospace as state-run parent Aviation Industry led a government push to develop a globally competitive aerospace industry.
The Hong Kong-based company also has ventures with planemakers Airbus and Embraer, which have both opened plants in China to tap its growing aviation market.
Li, who controls Hutchison Whampoa and Cheung Kong, increased his AviChina stake to 5.02 percent from 4.79 percent, according to the filing. Airbus's parent, European Aeronautic Defence & Space, also owns a stake in AviChina.
In August, Li said China's economy will avoid a hard landing even as global growth slows, and that his companies will be "active" in investments as they have cash. One of his companies this year bought the UK's Northumbrian Water for 2.4 billion pounds (US$3.8 billion).
AviChina, which makes the H425 helicopter and L15 trainer aircraft, boosted first-half profit 24 percent to 214 million yuan (US$34 million), excluding disposed of automaking businesses. Revenue surged 53 percent to 5.8 billion yuan.
Li made his fortune investing in Hong Kong real estate in 1967 after riots linked with China's Cultural Revolution depressed prices.
The company rose 11 percent, the biggest one-day gain in more than a month, to HK$3.87 at the close. The shares had earlier gained as much as 17 percent, the steepest climb since November 2009.
Li, Hong Kong's richest man, bought 4.6 million shares at an average price of HK$3.396 a week ago, according to a filing.
"Li is like a magician," said Vivien Chan, an analyst at Sinopac Securities Asia. "Any stock purchase by him helps push up share prices."
AviChina has shed automaking assets and boosted its focus on aerospace as state-run parent Aviation Industry led a government push to develop a globally competitive aerospace industry.
The Hong Kong-based company also has ventures with planemakers Airbus and Embraer, which have both opened plants in China to tap its growing aviation market.
Li, who controls Hutchison Whampoa and Cheung Kong, increased his AviChina stake to 5.02 percent from 4.79 percent, according to the filing. Airbus's parent, European Aeronautic Defence & Space, also owns a stake in AviChina.
In August, Li said China's economy will avoid a hard landing even as global growth slows, and that his companies will be "active" in investments as they have cash. One of his companies this year bought the UK's Northumbrian Water for 2.4 billion pounds (US$3.8 billion).
AviChina, which makes the H425 helicopter and L15 trainer aircraft, boosted first-half profit 24 percent to 214 million yuan (US$34 million), excluding disposed of automaking businesses. Revenue surged 53 percent to 5.8 billion yuan.
Li made his fortune investing in Hong Kong real estate in 1967 after riots linked with China's Cultural Revolution depressed prices.
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