Hong Kong stocks rose 1 percent on Thursday, rebounding from three-week lows and taking their cue from advancing global markets and better-than-expected earning from the likes of Hong Kong Exchanges and Clearing. Oil producers jumped on record crude prices, while a rally in metals prices sent mining shares sharply higher.
Strong earnings boosted the stock of bourse operator Hong Kong Exchanges and Clearing, while Ping An Insurance jumped after shareholders approved an equity issue plan that could raise some $17 billion, which investors speculate would fund overseas acquisitions.
"There are a lot of companies out there that are cheap now; if (Ping An) makes good acquisitions, it would be accretive to earnings," said Tat Auyeung, fund manager at APEX Capital Management.
The benchmark Hang Seng Index closed up 1 percent, or 228.39 points, at 23,342.73. The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, gained 1.7 percent, or 217.94 points, to 13,065.89. The main index has dropped about 16 percent so far this year and is 27 percent off an all-time peak hit in October.
Mainboard turnover was a low HK$69.6 billion (US $8.9 billion), down from Wednesday's HK$79.8 billion. China's top oil producer PetroChina vaulted 2.4 percent to HK$11.04 and offshore oil specialist CNOOC Ltd leapt 3.2 percent to HK$12.24.
Lingbao Gold surged 3.7 percent to HK$5.01 and Zijin Mining shot up 4 percent to HK$10.32. Aluminium Corp of China, China's top alumina producer, advanced 2.6 percent to HK$14.86. Credit Suisse said it was raising the stock to neutral from underperform after the bank upgraded aluminium price forecasts 16 percent for 2008.
HKEx rose 1.5 percent to HK$143.10 after more than doubling fourth quarter profits. Ping An, the top blue chip gainer, surged 4.6 percent to HK$59 after its shareholders approved what may potentially be the world's sixth-largest fundraising.
China COSCO Holdings Co Ltd jumped 5.1 percent to HK$22.7 after its parent and China's largest shipping conglomerate, China Ocean Shipping (Group) Co (COSCO Group), said it may inject its tanker fleet assets into the listed flagship. HK Electric declined 1.1 percent to HK$44.80. The city's power company said on Thursday its yearly net profit rose 9 percent to total HK$7.45 billion.