13 December 2019

HSI rides Tencent gains, Yellen talk

Hong Kong stocks rebounded Thursday, cheered by news the United States will not taper its bond buying program any sooner than expected.

The benchmark Hang Seng Index edged up 0.82 percent to close at 22,649 points. The Hang Seng China Enterprises Index gained 1.1 percent to 10,391. The Shanghai Composite Index rose 0.6 percent to 2,100 points.  

Investors piled into the market after Tencent said it posted a net profit of 3.88 billion yuan (US$628.9 million) in the third quarter, up 20.1 percent from a year earlier. The stock climbed 4.6 percent, contributing 63 points to the benchmark index’s gains.

Earlier, Fed chairman nominee Janet Yellen stirred the market by saying the US economy still needs help, signaling its massive stimulus program will continue. 

China Resources Enterprise (00291.HK) picked up 4.2 percent after releasing upbeat estimates of its third quarter results including 36 percent growth in core operating profit. 

Auto plays advanced, paced by Guangzhou Automobile (02238.HK) which gained 6 percent. BYD Co. (01211.HK), Great Wall Motor (02333.HK) and Geely Automobile each closed more than 2 percent higher.

Guangzhou Shipyard International (00317.HK) surged more than 14 percent to a 52-week peak before closing 12.5 percent higher on the back of reports Beijing is planning 4.56 billion yuan (US$747 million) in subsidies to the ship-breaking industry. 

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