Date
21 October 2017

Gold shines on record consumption, drives indices higher

Hong Kong stocks surged Tuesday, following gains in mainland indices, as spot gold rose a fifth straight day to a record US$1,287.81 an ounce.

The Hang Sang Index added 1.78 percent to 21,962 points. The Hang Seng China Enterprises Index, the main gauge for H shares, climbed 2.53 percent to close at 9,856.

The Shanghai Composite Index put on 0.84 percent to 2,103 points and the Shenzhen Component Index was up 0.33 percent to 7,838.

Gold rallied to its highest level since November, driving related counters after data showed Chinese consumption topped 1,000 tons last year.

Zhaojin Mining Industry (01818.HK) closed 12 percent higher, Zijin Mining Group (02899.HK) gained more than 8 percent and Lingbao Gold (03330.HK) picked up 4.2 percent.

The China Gold Council said Chinese gold consumption rose 41.6 percent year on year, breaking the 1,000-ton barrier for the first time.

Almost all blue chips ended the day higher, except Lenovo Group (00992.HK), Tencent (00700.HK) and China Merchants Holdings (00144.HK) which gave up less than 1 percent each.

Funds piled into China’s financial sector, powering insurance plays and lenders. Ping An Insurance Group (02318.HK) and China Life Insurance (02628.HK) closed more than 5 percent higher, the best performing blue chips.

China Construction Bank (00939.HK), Industrial & Commercial Bank of China (01398.HK) and Bank of China (03988.HK) rose in a range of 2 percent to 3.1 percent.

– Contact the writer at [email protected]

RA

 

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