Shares of Hong Kong-listed mainland steelmakers, led by Angang Steel, surged sharply after United States investment banks Goldman Sachs and JP Morgan revised up their earnings forecasts and target prices of leading steelmakers amid mounting optimism over steel prices.

Angang surged 20.32 per cent to close at a record high of HK$21.85 with HK$1.74 billion worth of shares changing hands.

Goldman yesterday upgraded Angang to 'buy' from 'neutral' and revised up Angang's target price 160 per cent to HK$27, citing strengthening steel prices, increased production volume and a potential breakthrough in a merger with smaller rival Bengang Steel Plates.

It expects Angang next month will report a 66 per cent jump in first-half profit to 5.04 billion yuan.

JP Morgan also revised up its target price for Angang to HK$25.50 from HK$21 and Maanshan Iron & Steel's target price to HK$8.50 from HK$7 on higher steel prices.

Maanshan Iron shares closed up 10.55 per cent at a record HK$7.02.

Zhang Feng, an analyst at JP Morgan, expects the mainland's spot steel prices to go up 5 to 8 per cent over the next two years as mainland steel demand grows faster than capacity.

Shares of China Oilfield Services (COSL), the biggest provider of offshore oilfield services in the mainland, gained as much as 17.4 per cent after Credit Suisse and CLSA raised their earnings forecasts and investment recommendations on the company.

The revisions came a day after COSL, a sister company of dominant offshore oil and gas producer CNOOC, unveiled a 19.5 per cent jump in first-half operating days for its drilling rigs and a reduction in inoperative days due to maintenance.

Credit Suisse raised its earnings per share estimate by 34 per cent for this year and raised its share price target by 52.9 per cent to HK$13.

CLSA analyst Gordon Kwan said in a research note that COSL may post a 50 per cent jump in net profit of more than 10 billion yuan in the first-half and raised its 12-month target share price by 42 per cent to HK$13.80. CLSA raised COSL's net profit forecast by 30 per cent for this year.

COSL shares closed 12.59 per cent higher at HK$11.98.

Meanwhile, three property developers tapped the equity market to raise as much as HK$3.56 billion by selling new shares.

Mainland developer CC Land Holding was selling HK$2.27 billion worth of new shares at an offer price of between HK$7.80 and HK$8.10 each, representing up to a 10.1 per cent discount compared with the last closing price of HK$8.68, according to a sale document sent to fund managers.

The proceeds will go towards funding the firm's core business expansion including future acquisitions of land as well as financing existing project developments.

Another mainland property firm, Shenzhen Investment, was seeking to raise up to HK$1.05 billion by offering 160 million new shares with an offer price between HK$6.19 and HK$6.60 apiece, according to a source. Citi is running the transaction. The offering represents 5.27 per cent of the developer's enlarged share capital and the firm may increase the number of shares being sold to 200 million if there is strong demand.

Chuang's China, a small mainland developer, was marketing up to US$42 million in new shares via a placement yesterday.

The firm was offering 160 million new shares but could increase this to a maximum of 220 million with an offer price between HK$1.44 and HK$1.49 each. CLSA is the arranger.