Hong Kong shares have best day in nearly six months, China banks rise

PUBLISHED : Wednesday, 26 June, 2013, 2:32pm
UPDATED : Wednesday, 26 June, 2013, 4:22pm

Hong Kong shares had their best day in nearly six months on Wednesday, as China’s financial markets calmed down after the central bank’s pledge to prevent a lasting credit crunch and investors hunted for bargains following recent market turmoil.

The Hang Seng Index closed up 2.4 per cent at 20,338.55, while the China Enterprises Index of the top Chinese listings in Hong Kong rose 3.3 per cent. For both, it was their biggest one-day percentage gain since January 2.

The CSI300 index of the leading Shanghai and Shenzhen listings shed early losses and edged up 0.1 per cent in its first gain in six sessions, while the Shanghai Composite Index fell 0.4 per cent to 1,951.49 points.

China banks were strong in Hong Kong as investors saw bargains after recent plunges. Industrial and Commercial Bank of China (ICBC) gained 6.6 per cent and China Construction Bank (CCB) rose 6.1 per cent.

China Minsheng Banking jumped 6.1 per cent in Hong Kong after the bank said that a Shanghai interbank offered rate (Shibor) hike had not caused liquidity disruption and that the management was confident about controlling credit risks despite the slowing economy.