Date
22 August 2017

Tencent and AIA Group save the day for HSI

Hong Kong’s benchmark index saw a rather choppy trading session on the first trading day of 2014.

The Hang Seng Index (HSI) dropped as much as 133 points in the morning session after HSBC released the final reading of its China purchasing managers’ index for December, which stood at a three-month low of 50.5.

But the gauge recovered lost ground as investors snapped up shares of tech giant Tencent (00700.HK) and insurer AIA Group (01299.HK). It closed 33 points or 0.14 percent higher at 23,340. 

The Hang Seng China Enterprises Index, the main gauge for H shares, slipped 0.99 percent to finish at 10,709 points. The Shanghai Composite Index declined 0.31 percent to end the day at 2,109.

Tencent spiked 2 percent to end at a fresh record high, making it the best performer among blue chips. AIA rose over 1 percent.

Coal plays remained under selling pressure. China Coal Energy (01898.HK), last year’s worst-performing blue chip, shed over 4 percent. China Shenhua Energy (01088.HK) and Yanzhou Coal Mining (01171.HK) gave up 2.25 percent and 6.5 percent, respectively.

China Everbright International (00257.HK), a developer of water and environmental protection projects, surged 9.8 percent after announcing through a regulatory filing that it will inject all its water industry investments into Singapore’s HanKore Environment Tech Group in exchange for a majority stake in the company.

Other players in the sector rode on the crest of the China Everbright deal. Tianjin Capital Environmental Protection Group (01065.HK) jumped 12 percent, hitting a six-year high, while Beijing Enterprises Water Group (00371.HK) climbed 2.3 percent to a 13-year high.

– Contact the writer at [email protected]

CG

 

 

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