China-linked shares rally on news mainland insurance firms can invest overseas
Hong Kong's leading stocks finished the week on a strong note as the hefty retail subscription for Bank of Communications (Bocom) helped lift the spirits of investors and a drop in the local unemployment rate underpinned property and retail counters.
China-linked stocks attracted buying after the Chinese regulators said mainland insurance firms would be allowed to invest in state-owned enterprises listed overseas. The red-chip index added 0.61 per cent led by telecommunications operators, but the H-share index fell 0.34 per cent as PetroChina saw some consolidation after finishing at a record high the previous day.
China Life Insurance fell 0.93 per cent to $5.30 as the rumour that Warren Buffett had taken a 10 per cent stake in the company was not confirmed. The stock rallied 4.9 per cent on Thursday.
The Hang Seng Index added 0.57 per cent, or 78.5 points, to 13,912.03, marking its strongest one-day gain in three weeks. It did fall 22 points on the week however, as Bocom's popular initial public offering attracted money away from the market.
According to brokers, investors have also been reluctant to commit capital as the overall market has lacked a clear direction amid mixed economic signals from the United States - signals which now seem to be leaning more towards continuing healthy growth and modest inflation pressure.