Hong Kong stocks end higher, Mengniu up after Danone deal

31 Oct, 2014

HONG KONG: Hong Kong shares ended higher on Friday, reflecting strength in the Chinese market and greater risk appetite after strong US growth data, leaving the market with its biggest monthly gain since July.

The Hang Seng Index closed up 1.3 percent at 23,998.06, and the China Enterprises Index of the leading offshore Chinese listings in Hong Kong rose 1.2 percent.

For the week, the blue chip index was up 3.0 percent, its biggest gain in 14 weeks, and the H-shares index was up 3.5 percent, its best performance in eight weeks. Both indexes added more than 4 percent in October.

The consumer goods sector was lifted by Mengniu Dairy after Danone SA announced that it would buy a 25 percent stake in Mengniu's Yashili International Holdings Ltd for $550 million.

Mengniu shares climbed 2.2 percent to their highest close in six weeks. China Modern Dairy Holdings rose 1.8 percent.

Yashili shares reversed an early gain and were down 9.2 percent in their biggest daily decline since March 25.

Copyright Reuters, 2014

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