Date
18 October 2017

HSI rebounds on back of banking plays

Hong Kong stocks rebounded sharply from a string of declines Monday, helped by banking counters as investors piled into mainland lenders.

The benchmark Hang Seng Index gained 1.43 percent to close at 23,069 points. The Hang Seng China Enterprises Index finished 1.85 percent higher at 10,582.

The Shanghai Composite Index rose 0.16 percent to 2,109.

Investors chased banking stocks for much of the trading session. Industrial & Commercial Bank of China (01398.HK) ended 2.7 percent higher. China Construction Bank (00939.HK) and Bank of Communications (03328.HK) picked up more than 2 percent.

Monday was a shopping festival in mainland China, the nation’s most popular annual e-commerce event in which sellers take to the internet with an array of promotions and sales. 

Home appliance manufacturers saw their shares soar after indications sales had topped expectations. Haier Electronics (01169.HK) climbed 5.5 percent, Hisense Kelon Electrical (00921.HK) and TCL Multimedia Technology (01070.HK) rose 4.2 percent and 3 percent, respectively.

Yashili International (02319.HK) surged nearly 23 percent before closing 17 percent higher after Singapore’s Temasek Holdings and China-focused private equity firm Hopu bought a US$213 million stake in the company. Yashili parent China Mengniu Dairy Co. Ltd. had sold shares to meet Hong Kong listing requirements.

Meanwhile, CSR Corp. (01766.HK) and Zhuzhou CSR Times Electric (03898.HK) both added 5.4 percent after the government launhed a long-awaited second-round tender for locomotives. China Railway Construction (01186.HK) and China Railway Group (00390.HK) gained more than 2 percent.

– Contact the writer at betsytse@hkej.com

RA

 

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