Hong Kong stocks closed 0.48 percent higher on bargain-buying Monday and following a positive lead from Wall Street. The benchmark Hang Seng Index added 108.24 points to 22,806.58 on turnover of HK$48.10 billion ($6.21 billion). The modest rise came after the index fell nearly 800 points last week amid signs of stress in China's financial system. The index will rebound further, Wing Fung Financial head of research Mark To said, while advising investors to steer clear of bets on China's policy meeting next month.
"Expectations may already be getting too far ahead of reality," to said, referring to a high-profile meeting next month of top Communist Party officials who may introduce new economic reforms. Aluminium Corp of China climbed 2.04 percent to HK$3.00, Bank of China rose 0.29 percent to HK$3.46 and Cathay Pacific Airways gained 1.85 percent to HK$15.40. Chinese shares ended flat. The benchmark Shanghai Composite Index edged up 0.91 points to 2,133.87 on turnover of 77.9 billion yuan ($12.8 billion). "While companies are reporting earnings, investors are focused on reform," said Shenyin Wanguo Securities analyst Qian Qimin.
"So far the market has digested all the reform news so it awaits more," he added. China is expected to discuss economic policies and reform measures at a Communist Party meeting next month. Gains in agricultural sectors were offset by losses in coal miners and liquor producers. Heilongjiang Agriculture surged by its 10 percent daily limit to 12.00 yuan while hog raiser Hunan New Wilful advanced 4.21 percent to 6.43 yuan. Guizhou Panjiang Refined Coal dropped 4.55 percent to 8.60 yuan and Yunnan Coal Energy fell 3.92 percent to 8.82 yuan. Liquor maker Sichuan Swellfun slumped 8.55 percent to 10.59 yuan and Hebei Hengshui Laobaigan Liquor lost 4.79 percent to 22.08 yuan.
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