22 January 2019

Mainland plays soar but HSI slips in aimless trade

Chinese stocks continued their march Monday, with the main indices in Shanghai and Shenzhen both climbing more than 2 percent. However, Hong Kong’s benchmark index closed lower for the day.

The Hang Seng Index fell 57 points, or 0.27 percent, to close at 21,579 in directionless trading. The Hang Seng China Enterprises Index, the main gauge for H shares, gave up 0.33 percent to 9,613 points.

In contrast, the Shanghai Composite Index gained 2.03 percent to 2,086 points and Shenzhen was up 2.57 percent to 7,812.

Blue chips had a sluggish performance in general, with Chinese lenders especially weak. China Construction Bank (00939.HK), Industrial & Commercial Bank of China (01398.HK), Bank of China (03988.HK) and Bank of Communications (03328.HK) tumbled in a range of 1 percent to 1.5 percent.

Meanwhile, handset makers gained ground after Goldman Sachs released an upbeat report. It upgraded Coolpad (02369.HK) from “neutral” to “buy”, saying the company’s e-commerce business has strengthened its distribution channel for handset devices. The counter ended 7.9 percent higher.

Other technology plays such as TCL Communication Technology (02618.HK), ZTE Corp. (00763.HK) and Lenovo Group (00992.HK) added between 2.3 percent and 4.8 percent.

BYD Co. (01211.HK) rose 4.6 percent and Great Wall Motor (02333.HK) spiked 5.5 percent after the finance ministry said it will extend a subsidy program for electric vehicles in a stepped up fight against air pollution. The government also released a list of cities for its new energy campaign.

NVC Lighting (02222.HK) surged more than 10 percent after JP Morgan said it expects LED (light-emitting diode) lighting to go mainstream and raised the counter’s target price. TC Orient Lighting (00515.HK) soared 7.4 percent while Neo-Neon Holdings (01868.HK) gained 6.2 percent.

– Contact the writer at [email protected]



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