Hong Kong stocks reaches new record high
Hong Kong benchmark index close at record high Friday, pushed by China Mobile and Chinese mainland financial stocks, with the total capitalization of the Hong Kong market also hitting new record of 17.49 trillion HK dollars (2.23 trillion U.S. dollars).
The Hang Seng Index mounted after a 179 points higher opening, resetting an all-time intraday high of 23,302 in the afternoon and finished up 276 points at 23,292, despite widespread expectations of another policy tightening by China. The H-share index outperformed the broader market, rising 2.1 percent to 13,152.25.
Turnover totaled 83.45 billion HK dollars, up from 70.82 billion Thursday. The index rose 0.8% on the week. Chinese mainland stocks, or H-share, outperformed the broader market, rising 2.1 percent to 13,152.25.
Analysts said the anticipated tightening measures have already been priced in by the local market, and flush liquidity continues to drive up share prices.
Heavyweight China Mobile, the world’s largest wireless operator by subscribers, rose 2.5 percent to 93.20 HK dollars. The operator added 5.53 million customers in June, a monthly record, up from 5.46 million new subscribers in May.
Chinese finance stocks advanced, buoyed by the sharp hikes in mainland stock markets on the eve of holiday. Ping An and PICC P&C jumped 2.54 percent and 7.12 percent respectively. China Life added 2.65 percent.
Chinese mainland banks put in mixed shows. CCB put on 2.74 percent after BNP boosted its target price to 7.03 HK dollars. CM Bank gained 2.33 percent. ICBC eased after hikes and remained unchanged. Bankcomm climbed 1.13 percent, while Bank of China and CITIC Bank dipped 0.23 percent to 3.69 percent.
Mainland property stocks continued rising, defying possible macro-control measures. China Overseas breached the top by surging 9.08 percent as JP Morgan called for a Buy on it and raised its target price by 35 percent. Agile Property spiked 9.43 percent, setting a fresh high as UBS gave it a Buy rating for the first time with a target at 14.
On resource stocks side, PetroChina was up nearly 2 percent, and Sinopec Corp up 0.24 per cent; coal stocks recovered, China Coal, China Shenhua and Yanzhou Coal up 3.26 per cent to 5.2 per cent; Jiangxi Copper added 2.73 percent, Zijin Mining soared 11 percent.
Domestic demand stocks performed well. Mengniu Dairy was up 3. 64 percent, Parkson Group up 2.41 percent, Li Ning up 5.18 percent, Belle Int”l up 4.43 percent.
Aviation H-shares moved higher alongside their A shares. Air China was up 2.69 percent, China South Air up 4.8 percent and airport stock Beijing Airport up 3.51 percent.
HSBC China Dragon closed at 12 HK dollars on its first day of trading, off an intraday high of 12.08 HK dollars but sharply higher than its IPO price of 10 HK dollars. The fund will invest in A shares and B shares in mainland China, and H shares and red chips in Hong Kong.
Semi-fresh Fosun Int’l was up 0.72 percent, China Transmission flat, Xinhua Winshare down 2.74 percent after gains, China Automation down 1.04 percent, Anta up 2.23 percent and Vinda Int’ l up 3.08 percent. (One U.S. dollar equals 7.81 HK dollars)
Source: Xinhua
Copyright Fund China 2009.
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