23 March 2019

Govt support gets railway plays rolling

Hong Kong’s benchmark Hang Seng Index (HSI) extended its rises for a fifth day as the central government gave China’s rail sector a supportive nudge.

The HSI added 41 points, or 0.18 percent, to 22,565. The Hang Seng China Enterprises Index, the main gauge for H shares, rose 0.71 percent to finish at 10,093. But the Shanghai Composite Index dropped 0.74 percent to close at 2,041 points.

The rail sector ended higher after Premier Li Keqiang {李克強} said the central government will overhaul rail funding and speed up rail infrastructure rollouts.

China Railway Construction (01186.HK) gained 7.2 percent, China Railway Group (00390.HK) closed over 5 percent higher and China Communications Construction (01800.HK) climbed 5.6 percent. The news rippled across the infrastructure sector, with Anhui Conch Cement (00914.HK) adding 3.2 percent to reach a 52-week high. China National Building Material (03323.HK) and cement producer BBMG Corp. (02009.HK) both closed up more than 3 percent.

Meanwhile, instant noodle maker Tingyi Cayman Islands (00322.HK), also known as Master Kong, fell 4 percent during the session and was the worst performer among the HSI constituents. The group announced it will invest 2.48 billion yuan in Wealth City, an investment company focused on commercial real estate projects in Shanghai.

Hong Kong Exchanges and Clearing (00388.HK) rose just 0.64 percent for the day, declining to confirm or deny reports of a possible tie-up with the Shanghai Stock Exchange.

Luxury fashion house Prada SpA (01913.HK) announced a worse-than-expected full-year result, failing to achieve any growth in net profit last year. The counter fell over 5 percent.

– Contact the writer at [email protected]



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