Hong Kong stocks ended higher on Thursday, boosted by rising property shares and a strong earnings report from blue chip bank BOC Hong Kong (Holdings) Ltd.
But volume was low as investors awaited the earnings reports of conglomerates Hutchison Whampoa Ltd and Cheung Kong (Holdings) Ltd later in the day.
The benchmark Hang Seng index rose 0.82 percent to 15,771.17 on thin trading volumes of HK$27.6 billion (US $3.5 billion), down from Wednesday's HK$33.7 billion.
"Bank of China's results were quite good; double-digit growth can be taken as good results for a bank," said Andrew To, sales director at Tai Fook Securities. "That injected confidence into the market."
BOC Hong Kong (Holdings) Ltd, the overseas arm of Bank of China, gained 1 percent to HK$15.8 after reporting on Thursday its 2005 net profit rose 13 percent. Its second-half net profit rose 9 percent to HK$6.97 billion (US $894 million), trouncing expectations, as Hong Kong interest rates and property prices rose during the last six months of 2005.
Property shares also rose, with the Hang Seng property sub-index gaining 0.84 percent to 19,340.88. "Property shares had a technical rebound, but interest rate concerns will still affect properties until there are signs that the US interest rate cycle will end," To said.
The China Enterprises index of H-shares, or shares in Hong Kong-listed mainland firms, gained 1.29 percent to 6,562.57, lifted by rising commodity and oil issues.
Sinopec Corp and shares of its listed units jumped on renewed privatisation talk and speculation that China is set to reform the refined oil product sector soon.
Sinopec shares rose 3.8 percent to HK$4.8 while Shanghai Petrochemical jumped 6.5 percent to HK$4.95 and Yizheng Chemical surged 7 percent to HK$2.275.
The trading debut of construction materials maker China National Building Material Co saw the stock jump 21 percent to HK$3.325 from its issue price of HK$2.75 per share.
CNBM's listing and other eagerly awaited initial public offerings in the queue lent strength to bourse operator Hong Kong Exchanges and Clearing Ltd which leapt 4 percent to a record high close of HK$43.4 in its fourth straight day of gains.
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