Market Open: Hang Seng seen to start 2013 higher
The Hang Seng is expected to open higher on the first day of trading of 2013 due to positive sentiment that China will boost economic growth this year and make a cyclical recovery.
Market strategists and traders expect the benchmark index to perform well on Wednesday due to the so-called "new year effect". The Hang Seng Index rose 2.4 per cent in 2012 and 1.7 per cent the year before. The optimistic predictions are also due to the performance of China's manufacturing index, which held steady at 50.6 in December.
Any cap could come from US where the Republicans oppose the Senate's budget bill. This could dampen plans to undo US$600 billion in tax increases and spending cuts - which took effect from
PICC Property and Casualty (2328.HK) is worth watching after it said all conditions have been met for its asset management arm to purchase a 5 per cent stake in Industrial Bank for 17.1 billion yuan.
China Tianrui Group Cement Company (1252.HK) will resume trading after denying claims by the Online Stock Investigation Group, whose composition is not known. The group on Sunday said Tianrui "risks defaulting on its debts" because of a low level of cash and huge obligations. The company said it has the ability to settle bank loans of 3.6 billion yuan (HK$4.4 billion) and short-term bonds of one billion yuan when they mature in January and April.