Update | Tencent, property firms push Hong Kong shares to fresh record
Banks were the main decliners in Hong Kong, while shares in mainland China also rose
Hong Kong’s stock market rose to a record high for a fourth straight session on Monday, as gains in internet giant Tencent Holdings and property developers offset losses in banks.
The Hang Seng Index erased morning losses to finish 0.43 per cent, or 138.52 points, higher at a fresh record high of 32,393.41. Turnover on the main board was HK$168.9 billion (US$21.6 billion), up from Friday’s HK$162.6 billion. The Hang Seng China Enterprises Index added 0.19 per cent, or 25.06 points, to 13,204.58, its highest close since 2015.
“The Hong Kong market is in a sweet spot right now. China is expected to slow on reforms but that is not necessarily a bad thing, it will be a good slowdown as state-owned enterprises rationalise,” said Prashant Bhayani, Asia chief investment officer at BNP Paribas Wealth Management.
Among stocks with the biggest turnover, Tencent Holdings rose 1.68 per cent to a record high of HK$460, the biggest contributor to the Hang Seng Index’s rise, with 54 points. Ping An Insurance gained 3.05 per cent to a fresh record of HK$96.15 while Hong Kong Exchanges and Clearing, the bourse operator, increased 2.1 per cent to HK$301.
Nike footwear supplier Yue Yuen Industrial surged 18.85 per cent to HK$38.15 on news that it is set to gain HK$6.7 billion from a plan to privatise its retail arm.
Medical services provider C-Mer Eye Care Holdings, which debuted a week ago, jumped 6.52 per cent to HK$13.72.
Property developers performed well. China Resources Land climbed 6.36 per cent to HK$30.10 after Citigroup reiterated its buy rating and target price of HK$33.88, citing expectations for sales to rise 32 per cent on year to reach 200 billion yuan (US$31.2 billion) in 2018.