Hong Kong blue chips rose 0.6 percent on Thursday, led by China Mobile, while strong momentum swept up underplayed issues like mainland lenders and conglomerate Hutchison Whampoa. Oil producer PetroChina Co Ltd also jumped after it had been sidelined in the recent rally, lifting China plays up 2 percent.
Mainland carriers, led by China Eastern Airlines, rallied on speculation of an industry-wide restructuring. The market hit a new life high, its fifth in the last seven sessions, sparking the prospect of a near-term consolidation.
"We're a bit overdone," said Alex Wong, director at Ample Finance Group. "Sentiment is still bullish (here), but near-term, we're likely to correct. US stocks may not have much upside and that will impact Asia." The benchmark Hang Seng Index closed up 146.49 points to end at 25,701.13, earlier setting a fresh high at 25,773.60.
The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, gained 296.74 points to 15,552.23. The index also set a fresh record earlier at 15,586.28. Mainboard turnover was the sixth highest at HK$118.9 billion (US $15.2 billion) versus Thursday's record HK$138.7 billion. PetroChina finished up 3.5 percent at HK$12.38, after lagging recent hefty gains by CNOOC Ltd amid record crude prices. CNOOC fell 3.2 percent to HK$11.60.
Sinopec raced up 2.7 percent to HK$8.73 amid speculation of an asset injection by its parent, which the company denied. Sinopec said it would soon issue a clarification statement. Among mainland carriers, China Eastern Airlines jumped 23.2 percent to HK$8.65. Air China surged 13.2 percent to HK$11.66 in heavy trade.
Mainland lenders threw climbed amid strong market momentum, with China Construction Bank, supported by its domestic listing plan, striking a record before ending up 3.4 percent at HK$7.36. Industrial & Commercial Bank of China, the country's top lender, leapt 3.3 percent to HK$5.29.
Property shares fell after their record-breaking run, with Sun Hung Kai Properties down nearly 2 percent at HK$120.9 and Cheung Kong (Holdings) Ltd 1.2 percent lower at HK$127.10. China Mobile gained 1.5 percent to HK$112.70, having earlier hit a fresh high.
PICC Property and Casualty Ltd jumped 3.7 percent to HK$13.56 amid further speculation that China's top non-life insurer would list in the yuan-denominated A-share stock market. Speculation is also rife that it would buy life insurer New China. Also, the company said income from direct premiums amounted to 61.93 billion yuan during the first eight months of 2007.
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