PetroChina Makes Headlines, Discovers Untapped Oil Field

- Policy Adviser Yu SaysChina ‘Overdone? From Asia Crisis

  • [B]PetroChina Makes Headlines, Discovers  Untapped Oil Field[/B]

  • [B]Singapore[/B][B]  St[/B][B]ocks Advance to Record For Second  Closing[/B]

  • [B]Developers Lead Hong Kong Shares Higher[/B]

China May Be ‘Overdone? From Asian Crisis Scare
According to Yu Yongding, former monetary policy advisor to the People?s Bank of China, the country may very well be “overdone” on supportive plans since the Asian Financial Crisis about a decade ago. Following one of the worst times in the region?s history, the country?s government has since remain protective over the fragility of economy growth, helping it to amass a ballooning trade surplus and record foreign reserves. As a result, Yu, speaking in Kyoto in the overnight session, is hoping for policy that will help to ease not only the growing trade surplus, but also place strict controls on capital flows. “By far the surplus is too much and the foreign exchange reserves too high,” according to Yu. However, as in past speeches and quotes from the country?s policy makers and top advisers, time remains a heavy consideration. “China?s trade and industrial structure built over the past 20 years is not easy to adjust in a short period of time”, however, “that?s why we need to speed up the adjustment and to make growth more reliant on domestic demand instead of exports.”

PetroChina Makes Historic Find In Bohai Bay
Making the most highlighted discovery since 1974, PetroChina Co., the nation?s top oil producer, uncovered what seems to be a massive reserve in the Bohai Bay. Approximately 7.5 billion barrels of oil have been discovered, making it clear and evident that China is working to wane itself off global reliance for basic resources. Subsequently, shares of the company surged ahead by 14 percent, helping the market valuation of PetroChina to overshadow both OAO Gazprom and BP Plc to become the world?s third ranked oil company. What?s even more alarming seems to be further efforts placed in finding more resources as the company is set to outpace Exxon and Shell in money spent for discovery and exploration throughout the year. Ultimately, the event stands highlighted as the world?s fastest growing economy continues to assert its global independence, working well towards that goal so far.

Singapore Stocks Set Another Record
Rising to a record close for the second straight day, the Straits Times index added 35.12 points to close at 3,485.76 ahead of the weekend. The benchmark index has now advanced 2.6 percent on the week, with many speculating further gains next week on positive momentum. Helping the Times to advance was heavy bid interest in DBS. Southeast Asia?s largest lender reported profit that beat analyst estimates, rising to $404 million in the first quarter. As a result, shares surged ahead by 60 cents to S$22.80. The sentiment was echoed in shares of United Overseas Bank Ltd., the second largest lender in the region, which advanced 3.1 percent to a record S$23.10.

Development Stocks Lead Hang Seng Higher
Shares in Hong Kong surged to a record as development stocks, which helped the overall market to advance yesterday, paced gains again on the session. Leading the way was stock in Henderson Land Development Co. The company?s shares surged after it was revealed that home sales were the highest in almost two years according to government reports. Henderson Land jumped HK$3.45 or 6.8 percent to HK$54.05, the highest in over nine years. Subsequently, stock in Cheung Kong Ltd. also advanced, adding 2.9 percent to HK$109.50 while PetroChina stock also helped to fuel the optimism on the day on its discover, rising 14 percent to HK$10.16. Ultimately, the Hang Seng index was able to add 159.50 points on the advancers, closing ahead of the weekend at 20,841.08.