Stocks rally after Goldman Sachs raises China forecasts; bank, property sectors shine
Hang Seng at two-week high 23,829.67. Factors in China’s favour, says investment giant, are ‘notable rise’ in economic growth and hot southbound and warm foreign capital flows
Hong Kong’s Hang Seng Index closed Monday at its best level in two weeks, boosted by strong gains in Chinese banks and real estate developers, after Goldman Sachs predicted Chinese equities to outperform other regional peers and upgraded its ratings on banking and property sectors.
The Hang Seng Index rose for a second session in a row and closed up 1.1 per cent or 261 points at 23,829.67, the highest close since the end of February.
The Hang Seng China Enterprises Index, which tracks the performance of Hong Kong-listed mainland Chinese companies, advanced 1.9 per cent to close at 10,258.71.
Chinese banks and property developers were the best performing sectors, registering a 1.5 per cent and 1.3 per cent gain respectively.
The rallies came after Goldman Sachs issued a report upgrading its rating on Chinese equities to “Overweight”, favouring banks and property shares in particular.