Hong Kong blue chip stocks rose 1.07 percent on Thursday, tracking strong Asian markets, with telecoms firms like China Mobile rebounding, while mainland companies surged on A-share issue plans. JF Asset Management released its JF Investor Confidence Index, which reflects local investor sentiment on the stock market for the next six months.
The index reading of 134, was up from 125 in the last quarter, indicating investors are bullish, JF said. "The correction over the past few days has attracted some technical buying," said Benny Yu, senior analyst of VC CEF Brokerage. "It may be in rebounding mode for the next few days." The benchmark Hang Seng index ended up 201.21 points at 18,919.40 points.
Turnover was HK$38.2 billion ($4.9 billion), down from HK$40.8 billion on Wednesday. Hong Kong-listed shares in mainland companies, or H shares, closed up 2.1 percent at 8,847.75, led by China Life and Datang Power. "They were all boosted by the A-share concept," said Louis Wong, research director of Phillip Securities.
China Mobile, the world's largest mobile carrier, climbed 1.55 percent to HK$62.10, while smaller rival China Unicom jumped 3.12 percent to HK$9.59. China Life Insurance Co rose 3.06 percent to HK$19.54 after it said it would launch a 28 billion yuan ($3.57 billion) A-share offer this month and list them in Shanghai in January in what would be the second-biggest share sale ever in mainland China.
Datang International Power Generation Co Ltd, one of China's largest electricity generators, soared 6.13 percent after it said it would issue 500 million A-shares at 6.68 yuan per share, raising 3.34 billion yuan.
Guangshen Railway Co Ltd jumped 4.6 percent to HK$4.33 after it said it had set a price range for its offer of up to 2.75 billion A-shares at 3.30-3.79 yuan per share, as it seeks more than 10 billion yuan to finance acquisitions.
China Everbright Ltd surged more than 10 percent to a five-year high of HK$9.32 before ending the day up 5.56 percent at HK$8.93 after China's cabinet approved a plan to inject capital into affiliate China Everbright Bank ahead of its proposed Hong Kong listing next year.
Hong Kong Electric Holdings Ltd rose 2.06 percent to HK$37.15 after local newspaper cited a spokesman as saying the company is reviewing its tariff rise and may have results next week. CLP Holdings, Hong Kong's largest power utility, soared 4.16 percent to HK$56.30. Weichai Power Co Ltd jumped 8.48 percent to HK$24.95 after it said it was interested in buying the assets of bankrupt US auto parts maker Delphi Corp.
Construction service firm Baoye Group Co Ltd jumped 8.33 percent to HK$13.00 after it announced it would issue HK$566 million (US $72 million) worth of new shares to an investment fund, Tiger Global L.P., raising capital to fund purchases of properties.
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