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Laura He

Hong Kong stocks closed broadly higher on Tuesday, rising in lock step with a broader Asian rally as energy-related shares advanced on gains in crude oil prices.
The Hang Seng Index settled higher by 1.2 per cent or 234.85 points at 20,118.80. The Hang Seng China Enterprises Index closed up 1.4 per cent or 113.17 points at 8,425.78.
Companies affiliated with Apple rallied in Hong Kong after Warren Buffett’s Berkshire Hathaway revealed it was holding US$1.1 billion worth of shares in the US tech giant.
Cowell e Holdings soared 9.2 per cent to end at HK$2.72. Sunny Optical Technology Company surged 4.4 per cent to HK$25. AAC Technologies Holdings improved by 1.1 per cent to HK$60.60.
Major oil producers were higher, tracking gains in crude oil prices.
Sinopec’s shares rose 2.2 per cent in Hong Kong and 1.7 per cent in Shanghai. PetroChina rose 2.5 per cent in Hong Kong and 0.4 per cent in Shanghai. Cnooc was up 3 per cent in Hong Kong to close at HK$9.23.
Airline shares traded mixed amid concerns higher fuel costs would weigh on profits. Cathay Pacific fell 0.2 per cent in Hong Kong, while China Southern Airlines rose 2.5 per cent in Hong Kong and fell 3.9 per cent in Shanghai. Air China rose 2.1 per cent in Hong Kong but tumbled 2.5 per cent to 7.48 yuan in Shanghai.
Shanghai’s main share index lost ground after Chinese President Xi Jinping pledged to push ahead with the structural reforms and reduce the country’s debt levels, while the startup board in Shenzhen rallied on hopes that the central government will soon launch the much-anticipated Shenzhen-Hong Kong stock connect programme to boost cross-border trading.
The Shanghai Composite Index ended down 0.3 per cent or 7.18 points at 2,843.68. The CSI300, which tracks some of the nation’s largest companies, also dropped 0.3 per cent or 9.29 points to 3,086.02.
However, in Shenzhen, the start-up board ChiNext Index advanced 1.2 per cent or 23.58 points to close at 2,081.44. The Shenzhen Composite Index was virtually unchanged to finish at 1,814.68.
Combined turnover for Shanghai and Shenzhen jumped to 431 billion yuan (HK$511.3 billion) from 362 billion yuan on Monday.
President Xi said on Monday that the government will firmly push ahead with its “supply-side” structural reforms, focusing on capacity cuts and leverage reduction. The remarks came days after the People’s Daily, the Communist Party’s flagship newspaper, said China will brace for a “L-shaped” growth trend given severe structural problems and the government should not support the economy by increasing debt.
“Given what has been said in the People’s Daily, we believe the central bank will not loosen its monetary policy (in the short run),” said analysts from Essence International in a note on Tuesday.
“It’s unrealistic to rely on loose monetary policy to stimulate the economy,” they added. Investors should instead place hopes on the launch of Shenzhen-Hong Kong Stock Connect scheme, which will allow foreign individual investors to directly buy Shenzhen stocks for the first time, as well as the possible inclusion of mainland Chinese shares into the MSCI emerging markets index when an annual review is completed in June.
“We expect the Shenzhen-Hong Kong Stock Connect will be announced before the end of May at the soonest, so to enhance the possibility for A-shares to be added to MSCI’s benchmarks,” they said.
In fact, many investors are eyeing the Hong Kong visit by Zhang Dejiang on Tuesday, who is chairman of the National People’s Congress Standing Committee and overseer of Hong Kong affairs. Speculation has circulated that he will unveil additional details on the launch of the Shenzhen-Hong Kong stock connect programme.
Nevertheless, Hanna Li Wai-han, a strategist at UOB Kay Hian (Hong Kong), said she does not expect Zhang’s visit to bring much news for markets.
Among market outperformers, brokerages advanced, with Shenzhen Securities jumping 3.6 per cent to 12.85 yuan, Everbright Securities was up 1.3 per cent to 16.5 yuan, and Huatai Securities ended higher by 0.9 per cent to 15.93 yuan.
With additional reporting by Celia Chen


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Hong Kong stocks notch gains, Shanghai loses ground on stimulus worries 

Floor traders are seen at the Hong Kong stock exchange in Central in this Juy, 2015 file photo: Nora Tam

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Hang Seng gains 1.2 per cent, while Shanghai Composite sheds 0.3 per cent


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Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


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.css-1m2rp1p{color:#34b8b5;}Daily Report | Hong Kong stocks notch gains, Shanghai loses ground on stimulus worries

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Hang Seng gains 1.2 per cent, while Shanghai Composite sheds 0.3 per cent

Daily Report | Hong Kong stocks notch gains, Shanghai loses ground on stimulus worries

Hang Seng gains 1.2 per cent, while Shanghai Composite sheds 0.3 per cent