bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Yujing Liu

Deb Price

Good day, traders!
Hong Kong markets closed at a three-month high. Trade optimism boosted the offshore yuan to 7 per US dollar. The Shanghai Composite Index closed ahead, with gains in blockchain, chicken, wireless headset stocks, among other sectors.
Catch up on the day's action below.
And if you'd like to receive the Live Stocks Blog each day via email, shoot Deb a message at deb.price@scmp.com.
-- Yujing Liu and Deb Price in Hong Kong 


Before Trump’s Fed pick, a new clear favourite emerges for chair in race to succeed Powell

UK and China weigh cross-border asset-management scheme to deepen market ties

China seeks ‘slow bull’ rally

Hong Kong stocks end 7-day rally as investors resort to profit-taking

Stocks

Stocks Blog: Luxshare Precision jumps in China; Tencent gains in Hong Kong, while high-flying CMGE falls 

Luxshare Precision Industry, the main assembler of Apple's popular Airpods, shot up today, and has gained 220 per cent this year. Pictured, the new Apple AirPods Pro. Photo: Kwokwang Chow

Jefferies has initiated coverage of Budweiser Brewing APAC with a buy rating. Budweiser brands are displayed. Photo: Reuters

Business

Markets

High-flying game giant CMGE drops 
Game operators suffer as China regulates playing by minors


Hong Kong market closes at fresh three-month high
 


China stock market

Hong Kong protests

Kweichow Moutai

Trade war

Live

Jefferies is liking the China premium beer market, initiating coverage in the sector with buy ratings for Budweiser (1876 HK), Tsingtao in both the Hong Kong (168 HK) and mainland (600600 CH) markets, and China Resources Beer (291 HK), in that order of preference.
"China's beer market is saturated and needs to shift to premium beer to grow. Brewers with strong branding should outperform, and thus our top picks are Budweiser for its strong track record in creating premium brands, and Tsingtao-H, as recent reforms should revive its premium categories. We rate CRB Buy on its long-term growth prospects," analysts Mark Yuan, Anne Ling and Edward Mundy write in a new note.
Here's how Jefferies handed out its 12-month target prices for the stocks:
-- Budweiser Brewing APAC at HK$38 -- it closed Monday at HK$29.30, so that would be a Jefferies predicted gain of nearly 30 per cent. 
-- Tsingtao in Hong Kong at HK$63 -- it closed Monday at HK$47.95 (predicted gain 31.4 per cent) -- and on the mainland at 56 yuan -- it closed Monday at 48.32 yuan (predicted gain 15.9 per cent).
-- CRB at HK$48 -- it closed Monday at HK$42.90 (predicted gain 11.9 per cent).
Jefferies notes that China's beer market is at a saturation point, but premium beer growth is acceleration, leading the analysts to predict a 6.5 per cent sales growth in the next five years.
"As China's beer sector undergoes a transformation, moving away from a commodity to a brand business, brewers are embarking on a change in operating strategy, reallocating resources to premium beer," the analysts write. 
"... Who will outperform? Those who invest ahead of the curve, in our view. Budweiser is an early mover in this regard, as it began to premiumize its China portfolio from around 2011, and has established a strong premium brand portfolio and channel relationships. Tsingtao has also established a premium brand, but still needs to resolve its low efficiency. CRB is in the process of building up its premium brands, but management's strong execution gives us cause for confidence in its growth prospects," they write.
-- Deb Price    


Jefferies initiates coverage of four China-focused beer stocks, favouring Budweiser  

China has been warned to avoid the same mistakes with blockchain that it made with its peer-to-peer lending, as the government vowed a “thorough revamping” of the controversial lending platforms as part of a continuing battle against financial risk amid the domestic economic slowdown and the trade war with the United States.
A specially designated task force is in the process of working towards eliminating risks associated with peer-to-peer online lending platforms, the official Xinhua News Agency reported at the weekend, citing a task force statement.
The task force has been created in response to a series of online lending platform collapses that trapped the savings of millions of individuals who sought financial gain by lending through the platforms, with the resulting public uproar posing a severe challenge to the nation’s social stability. Ezubao, once China’s biggest peer-to-peer (P2P) lending platform, folded in 2016 having collected 59.8 billion yuan (US$8.5 billion) from more than 900,000 investors.
But with interest in blockchain, the technology that underlies bitcoin and other cryptocurrencies, many of which are still banned in China, on the rise after it was endorsed by President Xi Jinping at the end of last month, the government have been urged to take a more cautious approach following the expensive lessons learned from the P2P platforms.
Read full story here by Frank Tang.
Read a feature about blockchain stocks for investors by stocks reporter Yujing Liu here.    


China wants to avoid P2P mistakes with blockchain

Hong Kong’s Purchasing Manager’s Index (PMI) dropped to 39.3 in October, down from 41.5 in November, “signalling the worst deterioration in the health of the private sector since November 2008”, index compiler IHS Markit said in a report today.
The PMI is a measurement of economic performance based on indicators such as new orders, output and employment. Any figure greater than 50.0 indicates overall improvement of the economy.
"Hong Kong's private sector remained mired in one of its worst downturns for the past two decades during October, with the latest PMI survey signalling a deepening economic malaise,” Bernard Aw, principal economist at HIS Markit, wrote in the report.
"The ongoing political unrest and impact of trade tensions saw business activity fall at the sharpest pace since the survey started over 21 years ago,” he wrote.
Demand from mainland China declined at the fastest pace since the index began, and companies are drastically cutting back on purchasing activities and input inventories. Meanwhile, output prices fell further even as operational costs picked up, according to the report.
-- Yujing Liu 


Hong Kong PMI shows city’s business activity shrinking at the fastest pace in over two decades

Chinese President Xi Jinping expressed “high trust” in Hong Kong’s embattled leader Carrie Lam Cheng Yuet-ngor in a meeting with Lam on Monday in Shanghai and “fully affirmed” the chief executive’s response to unrest that has rattled the city since June, according to official media.
The formal sit-down was the first official meeting between the two since anti-government protests began in early June.
Responding to a report presented by Lam on the recent situation in Hong Kong, Xi affirmed the “hard work” done so far by the city’s chief executive to stabilise the situation and restore order, state news agency Xinhua reported, adding that Lam had Beijing’s trust in terms of work that still needed to be carried out.
Read full story by William Zheng here.


President Xi meets with Hong Kong leader Lam, praises her work amid protests

Here's what we are watching this morning:
Overnight markets/ What futures foretell
-- It was another spectacular day for US stocks, which finished at fresh records on Monday over trade optimism. The S&P 500 added 0.4 per cent to a fresh high of 3078.27, the Nasdaq Composite climbed 0.6 per cent to a record, and the Dow Jones Industrial Average was 0.4 per cent higher.
-- The Hang Seng Index Futures were 0.2 per cent lower at 27,563, while the China A50 futures also declined 0.4 per cent.
IPO debuts:  -- Shanghai Meidi Xi Biology Medical Company (688202 SH), Shenzhen Lifotronic Technology (688389 SH), DAS Security (688023 SH), China National Electric Apparatus Research Institute (688128 SH) and Jiuri New Materials (688199 SH) to debut on Shanghai’s Star market of technology stocks.
Economic statistics/Central Bank action:
China China PMI services and composite indices to release October data at 9:45am.
President Xi Jinping to deliver a keynote speech at the opening ceremony of China International Import Expo today.


Morning guidance 

The Hang Seng Index is down a bit in early trading, slipping 0.1 per cent to 27,521.72.
Three heavyweights are mixed.
-- AIA (1299 HK) slipped 0.06 per cent to HK$82.10
-- HSBC (5 HK) rose 0.2 per cent to HK$60.20
-- Tencent (700 HK) gained 0.2 per cent to HK$328.40 
-- Deb Price    


Hang Seng slips, with AIA falling and Tencent gaining 

The Shanghai Composite Index slipped 0.1 per cent to 2,972.
Here's how some of the most heavily traded stocks on the Shanghai-Hong Kong Stock Connect are doing:
-- Jiangsu Hengrui Medicine (600276 CH) fell 0.6 per cent to 91.68 yuan
-- Kweichow Moutai (600519 CH) inched up 0.01  per cent to 1,199.69 yuan
-- Ping An Insurance (601318 CH) slipped 0.3 per cent to 90 yuan
-- Industrial Bank (601166 CH) slipped 0.3 per cent to 19.78 yuan
-- Deb Price    


Shanghai slips, with Kweichow Moutai up a bit 

A hot stock in the highly speculative blockchain sector has fallen down.
Great Wall of Culture Group Holding (300089 SZ), a ceramics producer that owns a blockchain-developing education subsidiary, plummeted by the maximum 10 per cent after the securities watchdog started an investigation into the firm based on suspicion that it violated information disclosure regulations.
The company received a notice of the investigation on Monday, it said in an exchange filing today. Shares of the stock have soared by 65 per cent over the past two weeks to close at 5.46 yuan, boosted by hype over its speculated blockchain connections. The stock is now trading at 4.91 yuan.
The company said it has lost control over the education subsidiary and could not ascertain the company’s relation with blockchain technology in a filing on October 30.
-- Yujing Liu 


Blockchain darling plunges on disclosure investigation

Chicken stocks rose in early trading on the mainland, as Chinese consumers eat more chicken and eggs amid the African swine fever that has roiled the pork market and sent prices soaring.
A gauge compiled by data provider Xuangubao rose 2.14 per cent, with 10 of the 11 chicken-related stocks it follows posting early gains.
Shandong Yisheng Livestock and Poultry Breeding (002458 CH) rose 3.7 per cent to 35.62 yuan. Others rising include Shandong Minhe Animal Husbandry (002234 CH), which rose 2.4 per cent to 37.57 yuan, and Shandong Xiantan (002746 CH), which rose 1.5 per cent to 17.95 yuan. 
-- Deb Price    


Chicken stocks rise in China amid pig disease

China’s Caixin services purchasing managers’ index (PMI) fell to 51.1 in October from 51.3 in September, dropping to its lowest level in a year.
The composite PMI, on the other hand, rose to 52 from 51.9, its highest reading since May, driven by a pickup in manufacturing activities.
Manufacturing industry led a recovery in China’s economy in October, but business confidence remained weak, which was a restraint on production capacity, index compiler and financial news outlet Caixin quoted Zhong Zhengsheng, director of macroeconomic analysis with consultancy CEBM Group, as saying.
-- Yujing Liu 


October China PMI shows weakest state of services sector in a year

Stocks related to Hainan province – China’s southern island that will be transformed into a free-trade zone – shot up in early trading, after President Xi Jinping urged greater opening up of China’s economy at a major import fair in Shanghai.
China is a massive market with huge potential, and the country needs to lower tariffs and other costs to increase imports of high-quality products from overseas, Xi said in his keynote speech at the opening ceremony of the China International Import Expo.
The country will foster a batch of special innovative zones that encourages imports, he said,
A gauge of 28 stocks related to Hainan – designated as China’s 12th free-trade zone by Xi in April last year – rose 1.2 per cent.
Hainan Ruize New Building (002596 SZ), a concrete producer based in the province, led the advance with a 7 per cent gain to 5.37 yuan.
-- Yujing Liu 


Hainan stocks jump as Xi vows greater opening up

The Hang Seng is see-sawing in early trading, and was last up 0.08 per cent at 27,568.53 points.
CSPC Pharmaceutical Group (1093 HK) has been jumpy, and was last down 0.2 per cent at HK$20.75. It has gained in seven of the last eight sessions, and jumped 4.9 per cent on Monday.
Pork processing giant WH Group (288 HK) is among top gainers, rising nearly 2 per cent to HK$8.81.
Among other stocks of note:
-- Budweiser Brewing APAC (1876) gained 0.3 per cent to HK$29.40.
-- Meituan Dianping (3690 HK) fell 1.4 per cent to HK$97.05.
-- Deb Price 


Meituan Dianping, CSPC Pharmaceutical fall in Hong Kong 

The five debutants on China’s Star Market of innovative companies soared on their first day of trading.
Shanghai Meidi Xi Biology Medical Company (688202 SH), a contract research firm for drug developers, jumped by 74 per cent to trade at 72.38 yuan the latest, from its initial public offering price of  41.50 yuan.
Shenzhen Lifotronic Technology (688389 SH), a producer of medical equipment, surged 120 per cent to 20 yuan from its initial public offering price of 9.1 yuan.
Hangzhou Das-security Information Technology (688023 SH), an internet security solutions provider, rose 27 per cent. China National Electric Apparatus Research Institute (688128 SH), a state-owned developer of electronics technology, jumped 37 per cent. Tianjin Jiuri New Materials (688199 SH), a photoinitiator manufacturer, added 8.1 per cent.
-- Yujing Liu 


Star Market debutants skyrocket in debut trading

Cancer drug developer BeiGene (6160 HK) fell 1.2 per cent to HK$115, after gaining nearly 40 per cent over the previous two sessions on news that American biotech major Amgen agreed to buy a 20.5 per cent stake for US$2.7 billion.
The deal would would make Amgen the company’s biggest shareholder.
-- Deb Price


Traders bagging profits from BeiGene after nearly 40 per cent gain in two days

Chinese mobile game giant CMGE (302 HK), which started trading on the main board of Hong Kong’s stock exchange last Thursday, is on track for its first day of losses as traders pocket profits.
It is down 3.8 per cent to HK$4.10 in morning trading.
On Monday, it closed ahead 22.41 per cent, building on Friday's jump of 20.5 per cent to HK$3.48.
Its public offering price last Thursday was HK$ 2.83.  If it ended at the HK$4.10 price, it would still be up 45 per cent. 
-- Deb Price    


High-flying game giant CMGE on track for first day of losses 

Brokerage stocks continued to rise in early trading, with a gauge tracking 47 brokers showing them all with gains. 
They include Hualin Securities (002945 CH), which gained 1.1 per cent to 14.29 yuan. China Galaxy (601881 CH) rose 1.7 per cent to 11.36 yuan, while Huaxi Securities (002926 CH) climbed 1.4 per cent to 9.93 yuan.
On Sunday, Xinhua reported that China intends to loosen limits on price movement and make listing of new companies easier, a step expected to boost stock trading.
-- Deb Price    


Brokerage stocks continue to rise in China

China stocks rose in the morning session, with gains seen among chicken, cement, brokerage and bank sectors and small losses in block chain stocks.
The Shanghai Composite Index rose 0.7 per cent to 2,996,  the CSI 300 of large caps in Shanghai and Shenzhen rose 0.8 per cent to 4,010.81, and the Shenzhen Composite Index rose 0.4 per cent to 1,653.61.
-- Deb Price    


China stocks rise in morning session

The Hang Seng Index turned up in the morning session, gaining 0.5 per cent to 27,694.49.
Among index heavyweights, AIA (1299 HK) gained 0.2 to HK$82.30, HSBC (5 HK) rose 0.4 per cent to HK$60.35, and Tencent (700 HK), the Chinese social media and gaming giant, rose 1.8 per cent to HK$333.60. 
Overall in Hong Kong, 5G-related stocks gained, with ZTE (763 HK) rising 2.3 per cent to HK$24.20 and blockchain-related stocks gaining, including Grandshores Technology (1647 HK), which jumped 6.7 per cent to 0.48 HK cents.
 -- Deb Price    


Hang Seng Index will start afternoon with gains

The Shanghai Composite Index breached the 3,000 mark for the first time since October 16.
It gained about 1 per cent to 3,004.
-- Yujing Liu    


Shanghai Composite breaches 3,000 for first time in nearly three weeks

In a series of short essays, we are looking at the sweeping changes that Chinese regulators have planned for the country’s 55 trillion yuan (US$7.8 trillion) stock market.  
A registration-based initial public offering (IPO) system, already in place for the new Star technology board in Shanghai, is a key component to the market-oriented reforms to be expanded to the main boards, according to recent speeches by Yi Huiman, chairman of China Securities Regulatory Commission (CSRC).
In fact, talk about such change isn't new. 
As early as 2013, the Communist Party wrote the task of “pushing forward registration-based IPO system reform” into a key party document. The proposal later received a legal greenlight from China’s top legislative body in 2015, and was written into the government work report in the same year.
But a devastating market crash in the summer of 2015 stalled the proposal. 
In the following three years, the securities watchdog under the leadership of former chairman Liu Shiyu tightened the oversight on IPO applications and stepped up administrative punishment for market wrongdoing.
The delay in the implementation of a registration-based system – which will allow the market to play a bigger role in determining which companies get to go public –  is widely believed to be what the Communist Party anti-corruption investigators were referring to when they said Liu “failed to carry out the Party’s critical strategic plans”, in a terse statement that confirmed Liu turned himself in for a graft probe in May.
Since 2001, China’s main boards and the ChiNext board of start-ups have been operating in the approval-based system, where IPO applicants must go through a lengthy period – which can be as long as several years – to win the approval of the watchdog CSRC. This created a high barrier for listing and prevented loss-making companies with great potential, such as technology firms, to go public. Before 2001, China had a central-planning system where each province had a certain quota for new listings.
“The registration-based system is the biggest breakthrough in the reforms of Star Market,” Yi told the official Xinhua News Agency on Sunday. The average time of IPO registration was less than four months, he said.
-- Yujing Liu 


What's behind the buzz around China's IPO reform? Hint: market forces

Three beer companies aren't seeing a boost from the "buy" ratings they got from Jefferies.
-- Budweiser Brewing APAC (1876 HK) rose 0.2 per cent to HK$29.35. Jefferies see its rising to HK$38 -- it closed Monday at HK$29.30, so that would be a Jefferies predicted gain of nearly 30 per cent. 
-- Tsingtao (168 HK) slipped in Hong Kong 0.5 per cent to HK$47.70 and on the mainland (600600 CH)  it rose 0.43 per cent to 48.53 yuan.  Jefferies sees it rising to HK$63. It closed Monday in Hong Kong at HK$47.95 (predicted gain 31.4 per cent). Jefferies sees its A-shares rising to 56 yuan. It closed Monday at 48.32 yuan (predicted gain 15.9 per cent).
-- China Resources Beer (291 HK) fell 0.7 per cent at HK$42.60. Jefferies assigned it a price target of HK$48. It closed Monday at HK$42.90 (predicted gain 11.9 per cent).
-- Deb Price    


Beer companies mixed, with Budweiser trading up a bit

Gold demand rose 3 per cent in the third quarter, given a boost from a surge in inflows by exchange traded funds, according to a new report from the World Gold Council.
Jewellery demand dropped by 16 per cent, hurt by soaring gold prices.
Bar and coin demand fell 50 per cent, as investors locked in profits.
Technology demand fell 4 per cent.
Central banks added US$156 trillion to gold reserves, with year-to-date purchases 12 per cent higher than last year. Third quarter buying was down 38 per cent year-on-year, though purchases in Q3 2018 were the highest since 2010.  
The price of gold rose 5 per cent in the third quarter.
The spot price for gold is US$1,506.92. So far this year, it is up 17.50 per cent.

 
-- Deb Price      


Gold demand rose 3 per cent in Q3, World Gold Council says

China’s central bank lowered a key benchmark lending rate for the first time in over three years today, boosting liquidity in the financial system as the country's economic slowdown continues.
The People’s Bank of China cut the one-year medium-term lending facility (MLF) loans to commercial banks by 5 basis points to 3.25 per cent, it said in a statement today.
The move could open doors to a reduction in the loan prime rate (LPM), the de-facto benchmark interest rate introduced in August.
Financial stocks listed in China advanced broadly.
A gauge tracking 34 banks listed in Shanghai and Shenzhen gained 1.7 per cent. Bank of Qingdao (002948 SZ) led the surge, with a 4.2 per cent increase to 6.23 yuan.
-- Yujing Liu 


China's central bank lowers key rate, benefiting banks

Online gaming stocks in China declined broadly, after the country moved to tighten up restrictions for players who are minors.
The General Administration of Press and Publication has published a notice that bars online game operators from offering services to minors from 10pm to 8am each day, the official Xinhua News Agency reported today.
The notice also prevents gaming companies from offering services to minors for more than an hour and half on weekdays and three hours on holidays and weekends, according to the report. It also introduced caps on the amount of money minors could pay within the games each month.
A gauge of 71 China-listed online gaming stocks dropped broadly against an upward market. Meisheng Cultural (002699 SZ), which owns a variety of games and other entertainment operations, led the decline with a 4.7 per cent plunge to 7.06 yuan.
-- Yujing Liu


Game operators suffer as China regulates minor players

Chinese electronics stocks are the market’s new favourite as Apple’s wireless earphone AirPods becomes a big hit globally.
Luxshare Precision Industry (002475 SZ), the main assembler of  AirPods – the company’s second fastest-selling new product of all time – rose 5.1 per cent to a fresh record of 34.5. The stock has returned a jaw-dropping 220 per cent so far this year.
Investors are betting on a boom in the so-called True Wireless Stereo (TWS) bluetooth earbuds, led by the popularity of AirPods. Apple has recently launched AirPods Pro, a higher-end version, which costs US$249.
A gauge tracking 24 companies related to TWS earbuds surged 3 per cent in the latest trading.
Cosonic Intelligent Technologies (300793 SZ), which develops bluetooth earbuds, jumped by the 10 per cent daily limit to 57.32 yuan.
-- Yujing Liu


Wireless earbuds fervour drives up related stocks

Traders’ hopes for an initial resolution to the US-China trade war are higher today following reports of a potential tariff rollback.
The US and Chinese officials are “actively considering” cancelling some tariffs to settle the partial trade deal under negotiation, the Wall Street Journal reported, citing anonymous sources.
The White House is considering rolling back levies on US$112 billion worth of Chinese imports as a concession to secure the ceasefire deal as early as this month, the Financial Times reported, also citing anonymous sources.
-- Yujing Liu 


US, China could cut back tariffs for a ceasefire deal, according to media reports

The Shanghai Composite Index closed ahead 0.5 per cent, losing some of its earlier ground when it breached the 3,000 mark for the first time since October 16.
It has now gained nearly 20 per cent for the year.
The CSI 300 of large caps in Shanghai and Shenzhen rose 0.62 per cent to 4,002.81, while the Shenzhen Composite Index rose 0.4 per cent to 1,653.61.
Sectors that gained included blockchain, new energy vehicles, wireless headsets and chicken producers.
Here's how some of the most heavily traded stocks on the Shanghai-Hong Kong Stock Connect did:
-- Jiangsu Hengrui Medicine (600276 CH) fell nearly 1 per cent to 91.30 yuan
-- Kweichow Moutai (600519 CH) slipped 0.05 per cent to 1,199 yuan
-- Ping An Insurance (601318 CH) slipped 0.3 per cent to 90.06 yuan
-- Industrial Bank (601166 CH) rose 0.9 per cent to 20 yuan
-- Deb Price    


Shanghai closes ahead, with gains in blockchain, chicken, wireless headset stocks

The offshore yuan (CNH) surged by 0.4 per cent to 7 per US dollar – a psychologically-important level – in the latest trading, hitting its strongest level since August 2.
Optimism over a partial US-China trade deal fueled confidence in the currency traded in Hong Kong and elsewhere offshore.
The onshore yuan (CNY) also strengthened by 0.3 per cent to 7.01 per dollar.
-- Yujing Liu


Trade optimism boosts offshore yuan

Optimism about US-China trade negotiations pushed stocks higher in China and Hong Kong, said Kenny Tang, chief executive of Royston Securities.
“I think most of the growth is caused by positive expectations in the trade deal because the market expects there is some progress in the negotiations the US and China. ” Tang said.
US and Chinese officials are considering removing some tariffs worth US$ 156 billion on Chinese goods, reaching the first phase of the trade deal. 
The progress comes amid the Hang Seng Index continued rallying for the fourth straight day.
The Shanghai Composite index rose for the third straight day, increasing 0.5 per cent to 2,992 today.
“Also the US market is doing very well, which is also one of the incentives for the Hong Kong stock market. And the MSCI is going to further include A Shares in November. And the investors would expect more opportunities in the market of mainland China,” Tang said.
MSCI has been increasing the weight of China’s A-shares in the MSCI indexes from 5 per cent to 15 per cent since May, and will further increase the weight to 20 per cent in November.
As the Hang Seng is approaching 28,000, Tang predicted, “The growth is likely to pass over it. Because Hong Kong market has already lagged behind other markets over the past few months.”
While the stocks index rallied, gold price that overall had been pushed to the highest in six years, last dropped 0.3 per cent to US$1,505.40.
“Because the stocks markets have been globalized and there is a better outlook on the global economy, I think the gold price will retreat from the high level, because there will be not much need for gold,” Tang said.
-- Snow Xia   


Progress in US-China trade deal driver of markets, says stocks analyst Kenny Tang

The Hang Seng Index gained 0.5 per cent to close at 27,683.4, its highest level since July 31.
Chinese internet giant Tencent Holdings (700 HK) contributed the most to the benchmark’s advance, jumping 1.7 per cent to close at HK$333.
A slew of recently listed companies jumped.
Ludashi Holdings (3601 HK), a developer of computer and mobile utility software, surged 16 per cent to HK$5.78. Xinyuan Property Management Service (1895 HK) soared 18 per cent to HK$2.26.
-- Yujing Liu 


Stocks Blog: Luxshare Precision jumps in China; Tencent gains in Hong Kong, while high-flying CMGE falls

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}High-flying game giant CMGE drops Game operators suffer as China regulates playing by minors

High-flying game giant CMGE drops

Game operators suffer as China regulates playing by minors