Money continued to flow into Hong Kong equities yesterday but H shares, which have led the way over the past few weeks, were sidestepped as investors switched into property stocks and pushed the Hang Seng Index above the 13,000-point level for the first time in 2? years.
Property counters have been lagging the rest of the market since a strong sector rally in September and early October. But data showing that home sales increased last year provided an excuse to switch back in, dealers said.
The government is also widely expected to restrict the amount of land on offer when it announces a resumption of land sales through an application list later this week.
'This means the supply will remain low for the next couple of years, which should allow property developers to regain their pricing power,' BNP Paribas Peregrine analyst Adrian Ngan said.
The property sub-index jumped 5.87 per cent yesterday, led by a 10.2 per cent rise in Henderson Land Development. Sun Hung Kai Properties gained 6.03 per cent and Cheung Kong (Holdings) added 5.17 per cent.
The Hang Seng Index rose 1.59 per cent to 13,005.33 points.