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Market Open:Hong Kong stocks seen higher on infrastructure boost

News that China’s government plans to maintain high levels of investment in the rail sector may restore Hong Kong investors’ confidence in the Chinese economy.

PUBLISHED : Friday, 12 October, 2012, 8:11am
UPDATED : Friday, 12 October, 2012, 8:27am

News that China’s government plans to maintain high levels of investment in the rail sector may restore Hong Kong investors’ confidence in the Chinese economy.

According to 21st Century Business Herald, China plans to invest more than 500 billion yuan in railway construction next year, only slightly lower than this year’s investment. Chinese authorities have not reduced investment plans for the 12th five-year plan and has lifted investment volume in this sector several times this year, the paper said.

Overnight, the Standard & Poor's 500-stock index closed up 0.28 points, or 0.02 per cent, to close at 1,432.84. The Nasdaq Composite lost 2.37 points, or 0.08 per cent, to 3,049.42. In London, the FTSE-100 Index gained 53.04 points, or 0.92 per cent, to end at 5,829.75.

Hot Stocks of the Day:

Cheung Kong (Holdings) (0001.HK)
The company said last night it plans to spin off its local serviced apartment portfolio. Together with affiliate sister company Hutchison Whampoa (0013.HK), the developer would hold less than 30 per cent of the new real estate investment trust following its flotation.

China Environmental Resources Group (1130.HK)

The Independent Commission against Corruption (ICAC) has charged four more people together with the former president of the firm with fraud and bribery.

New World Development Company (0017.HK)
Rumours circulated in Central yesterday that its chairman, property tycoon Cheng Yu Tong, who was hospitalized last month, had died. However, late last night a spokeperson for the firm said he was "still being taken care of in the hospital".

Fantasia Holdings (1777.HK)

The Chinese developer denied an earlier report by Debtwire, and said it currently does not have any intention to proceed with convertible bond offering. The company maintains a stable and healthy financial position, it said.

China Taiping Insurance (0966.HK)
The insurer said premium income rose 13.94 per cent to 33 billion yuan from January to September from a year earlier.

 

 

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