18 August 2019

Reform hopes help Sinopec stand out in the blue-chip crowd

Hong Kong’s benchmark Hang Seng Index (HSI) ended a choppy trading session down Friday after rising more than 110 points in the morning. The index fell 42 points, or 0.19 percent, to finish at 22,660; the HSI shed 176 points for the week.

The Hang Seng China Enterprises Index, the main gauge for H shares, on the other hand, added 0.38 percent to finish at 9,709. The Shanghai Composite Index gave up 0.08 percent to close at 2,057 points.

Blue chips were mixed, with Sinopec (00386.HK) the best of the day, jumping as much as 4.6 percent amid expectations that the firm will soon introduce private capital as part of industrial reforms. Tencent (00700.HK) lost steam after reaching an intra-day peak.

Online retailers used Women’s Day on March 8 as a marketing tool to try to convince consumers to pay via their mobile devices. Payment system operators like China Innovationpay (08083.HK) surged 27.4 percent, while Hi Sun Technology China (00818.HK) and its subsidiary PAX Global Technology (00327.HK) jumped in a range of 8-9 percent.

Funds piled into lottery plays as hopes rose that Hainan will soon announce a policy related to the sector. REXLot Holdings (00555.HK) gained 12.5 percent and China LotSynergy (01371.HK) shot up as much as 23.2 percent. Other players saw notable rises as well.

Nothing seems to be stopping the ascent of Alibaba subsidiary CITIC 21CN (00241.HK). The counter closed 7.4 percent higher for the day after rising by half in the previous two trading sessions.

Meanwhile, China Mengniu Dairy (02319.HK), which will officially become one of the Hang Seng Index constituents Monday, rose 1.5 percent.

Electric-car maker BYD Co. (01211.HK) also returns to the H-share fold next week; its stock price went up 6.3 percent.

– Contact the writer at [email protected]


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