Tencent, property firms push Hong Kong shares to fresh record
Banks were the main decliners in Hong Kong, while shares in mainland China also rose
Hong Kong’s stock market rose to a record high for a fourth straight session on Monday, as gains in internet giant Tencent Holdings and property developers offset losses in banks.
The Hang Seng Index erased morning losses to finish 0.43 per cent, or 138.52 points, higher at a fresh record high of 32,393.41. Turnover on the main board was HK$168.9 billion (US$21.6 billion), up from Friday’s HK$162.6 billion. The Hang Seng China Enterprises Index added 0.19 per cent, or 25.06 points, to 13,204.58, its highest close since 2015.
“The Hong Kong market is in a sweet spot right now. China is expected to slow on reforms but that is not necessarily a bad thing, it will be a good slowdown as state-owned enterprises rationalise,” said Prashant Bhayani, Asia chief investment officer at BNP Paribas Wealth Management.
Among stocks with the biggest turnover, Tencent Holdings rose 1.68 per cent to a record high of HK$460, the biggest contributor to the Hang Seng Index’s rise, with 54 points. Ping An Insurance gained 3.05 per cent to a fresh record of HK$96.15 while Hong Kong Exchanges and Clearing, the bourse operator, increased 2.1 per cent to HK$301.
Nike footwear supplier Yue Yuen Industrial surged 18.85 per cent to HK$38.15 on news that it is set to gain HK$6.7 billion from a plan to privatise its retail arm.
Medical services provider C-Mer Eye Care Holdings, which debuted a week ago, jumped 6.52 per cent to HK$13.72.
Property developers performed well. China Resources Land climbed 6.36 per cent to HK$30.10 after Citigroup reiterated its buy rating and target price of HK$33.88, citing expectations for sales to rise 32 per cent on year to reach 200 billion yuan (US$31.2 billion) in 2018.
China Evergrande Group added 4.29 per cent to HK$29.20, Country Garden Holdings rose 0.59 per cent to HK$17.14 and China Overseas Land & Investment advanced 2.01 per cent to HK$30.40.
IT firm Sunevision Holdings, on its debut on Hong Kong’s main board, opened at HK$6.90 and peaked at HK$7.08. It closed at HK$6.77, up 1.04 per cent.
Among banks, China Construction Bank lost 0.94 per cent to HK$8.40, Industrial and Commercial Bank of China was down 1.39 per cent to HK$7.09 and Bank of China slipped 0.68 per cent to HK$4.40.
“Investors have been buying Chinese banks for the past few weeks on their improving earnings and P/E ratios,” said Louis Tse, managing director at VC Asset Management. “Now they are taking profit.”
Mainland Chinese stocks rose on Monday, with the Shanghai Composite Index gaining 0.39 per cent or 13.50 points to 3,501.36 and up for a fifth straight session. The CSI 300 – which tracks large caps listed in Shanghai and Shenzhen – increased 1.19 per cent or 51.20 points to 4,336.60, its highest level since 2015.
The Shenzhen Composite Index added 1.16 per cent, or 22.37 points, to 1,943.91 while the Nasdaq-style ChiNext advanced 2.32 per cent, in its biggest daily rise since August, to 1,768.21.
In Asian trading, Japan’s Nikkei 225 eked out a gain of 0.03 per cent to 23,816.33. South Korea’s Kospi fell 0.72 per cent to 2,502.11, while Australia’s All Ordinaries slipped 0.21 per cent to 6,106.20.