ChinaStockVenture.com

AIA Group (Hong Kong stock code 1299.HK) rose 2.89% to HK$28.50 in early morning. Earlier it hit HK$29, after reporting its 1H11 net profit rose 24% on year to US$1.31 billion, beating US$1.15 billion pegged by four analysts surveyed by Dow Jones Newswires.

AIA ‘s basic and diluted earnings per share were US11 cents. Operating profit after tax was US$967 million, an increase of 8%; with shareholders’ equity of US$21.14 billion, up 8%. Value of new business grew 32% to US$399 million and the value of new business margin was 36%, up 2.3 percentage points. Annualised new premium rose 23% to US$1.09 billion. The interim dividend will be HK11 cents (2010: nil) per share, payable on 2 September 2011.

Husky Energy, an integrated energy company headquartered in Canada and majority-owned by Hutchison Whampoa and Li Ka-shing, said its net earnings grew 274% year on year to C$669 million for the three month period ended June 30, or C$0.71 per share (diluted). The company has declared a quarterly dividend of C$0.30 per share on its common shares. The dividend will be payable on October 3, 2011 to shareholders of record at the close of business on August 19, 2011.

Hutichison bucks HSI’s 1% fall, rises 1.12% to HK$89.90 (ADR $23.07) in early afternoon session.

The de-rating of the H-share listed Chinese banks since 2007 to 8.3X 2011E P/E, or around 30% discount to historical valuation, can be more easily explained by free float shares’ 44% increase from new listings, expiry of strategic investors’ lock-up periods and capital raising rather than any deterioration in asset quality, given 18.7% EPS CAGR and managements’ relatively upbeat outlook guidance, Deutsche Bank says, adding it expects the H-share free-float will likely rise by about 29% in two years. It tips the de-rating might continue if the supply increase isn’t met by stronger investor appetite for banks needing capital raisings to support growth. It tips its top picks as ICBC (Hong Kong stock code 1398) and Agricultural Bank of China (1288), followed by China Construction Bank (0939), noting it expects the three to pay dividends equivalent to 1.84X, 1.4X and 1.62X their capital raisings over the next two years respectively. “We expect ICBC and ABC to differentiate themselves further and outperform peers, given their strong franchises, limited dependence on EU and U.S. strategic investors and their ability to generate capital that are more than sufficient to support growth.”

China Shipping Container Lines (CSCL) (Hong Kong stock code 02866) said it expects to record a net loss for the six months ended 30 June 2011 as compared with a net profit recorded for the corresponding period of 2010. The expected turnaround to loss was mainly attributable to factors including the adverse effect of the global economy, the debt crisis in Europe, the earthquake in Japan, substantial increase in the crude oil price and the newly-added shipping capacity in the shipping industry. As a result, the international container transportation market was adversely affected. The net profit recorded, prepared based on Hong Kong Financial Reporting Standards, amounted to about Rmb1.17 billion for the first half of 2010. The stock is down 6.87% at HK$2.17 after hitting fresh 52-week low at HK$2.12.

As concerns over the U.S. debt-ceiling gridlock escalates,  Credit Suisse says a default scenario “is very likely”, but even if a hike in the ceiling by August 2 eventuates, “there is a 50% chance of a ratings downgrade on U.S. sovereign debt.” The house adds that in the scenario that there’s no increase in the debt ceiling for a prolonged period (say three months) with no agreement in sight, “we believe stock markets could easily fall 15%.”