Hong Kong stocks end higher, led by gains in Sunac China
Hang Seng Index rises 1.5 per cent to 25,877.64, while Shanghai Composite Index eases 0.3 per cent to 3,203.04
Hong Kong stocks rose for a second day as property developer Sunac China jumped after buying US$9.3 billion of assets from billionaire Wang Jianlin and financial companies advanced.
The Hang Seng Index closed up 1.5 per cent, or 313.6 points, to 25,877.64 on Tuesday, extending a 0.6 per cent gain on Monday. The Hang Seng China Enterprises Index, also known as the H-share gauge, also climbed 2 per cent, or 201.62 points, to 10,415.20 while mainland equities swung between gains and losses.
Sunac China, the nation’s seventh-largest developer, surged 13.65 per cent to HK$16.82 as the stock resumed trading today. The company, controlled by tycoon Sun Hongbin, will buy 76 hotels and 91 per cent equity in 13 theme parks and projects classified as culture and tourism for a combined 63 billion yuan (US$9.3 billion) from Wanda Group, according to a statement released Monday.
Meanwhile, Wanda Hotel Development, an affiliate of Wanda group, slumped 7.06 per cent to 79 Hong Kong cents after jumping 47 per cent on Monday.
“It was a very wise decision of Wanda getting rid of its hotel assets so it could go back to being listed in the A-shares,” said Castor Pang Wai-san, head of research at Core Pacific Yamaichi, adding that there were limited buyers that could acquire large scale assets like Sunac China.
“The momentum in the Hong Kong bourse might extend for the next few days,” he said.
Financial companies gained the most among the industry groups on the Hang Seng Index. China Construction Bank climbed 4.04 per cent to HK$6.18, while Ping An Insurance Group of China closed up 1.72 per cent to HK$55.1 and China Life Insurance surged 2.71 per cent to HK$24.60.
With global equities near all-time highs, investors will be closely watching Federal Reserve Chair Janet Yellen’s semi-annual testimony on Wednesday in New York for cues as to whether she might dampen the hawkish bias shown recently by the policy-setting committee.
In the mainland, the Shanghai Composite Index closed down 0.3 per cent, or 9.59 points, to 3,203.04. The SSE 50 Index of the 50 biggest stocks on the Shanghai bourse, closed up 0.8 per cent.
Companies based in the southern province of Guangdong advanced after Economic Information Daily reported a preliminary plan for the city cluster development in the Guangdong-Hong Kong-Macau Greater Bay Area has been completed.
Ping An Bank surged 6.88 per cent to 10.25 yuan and Zhuhai Port jumped 4.58 per cent to 12.10 yuan. Shenzhen Chiwan Wharf Holdings climbed 6.79 per cent to 29.40 yuan.
The draft has been submitted to the National Development and Reform Commission, the newspaper said, without citing sources.
With additional reporting by Karen Yeung