Hong Kong rises as China announces Q2 GDP up 7.9pct, auto pulls back Shanghai
Hong Kong stocks rose for a third day after the government said that GDP jumped 7.9 percent in the second quarter. Mainland-listed shares retreated for the first time in three days, led by auto shares, on overvaluation concerns.
The Shanghai Comprehensive Index slid 0.15 percent to 3183.74. The SME Comprehensive Index dropped 0.62 percent to 4674.46.
The Hang Seng Index added 0.57 percent to 18361.87. The Hang Seng Growth Enterprises Index advanced 1.11 percent to 598.13. The Hang Sang China Enterprise Index gained 0.38 percent to 10902.47.
Taiwan's TAIEX Index advanced 0.62 percent to 6780.30.
Sinotruk (Hong Kong) Ltd.(HK:3808), China's biggest heavy-truck maker, rallied 15.31 percent after agreeing to sell a 25 percent stake to Germany's MAN SE.
Auto shares pulled back, having made excessive gains so far this year. SAIC Motor Co.(SH:600104), China's largest carmaker, which had risen 365 percent this year, retreated 2.97 percent, the most in two weeks. FAW Car co.(SZ:000800) dropped 3.87 percent. Changchun FAWAY Automobile Components Co.(SH:600742) lost 3.19 percent. Denway Motors (HK:0203) dropped 3.40 percent.
Bank shares rise on expectation of continued loose monetary policy
Statistics bureau spokesman Li Xiaochao said today that the foundation of China's recovery is "not yet firm" and that the government will stick to its "moderately loose" monetary policy and "proactive" fiscal stance.
Bank of Beijing (SH:601169) surged 6.94 percent on expectation of more loans in the second half. Industrial and Commercial Bank of China (SH:601398;HK:1398), the world's largest lender, added 0.76 percent on Shanghai trading and 0.78 percent on Hong Kong trading. Bank of Nanjing (SH:601009) climbed 5.49 percent. Industrial Bank (SH:601166) advanced 5.32 percent.
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