Hong Kong closes at 10 month high, China's banking regulator issues caution on non-performing loans
Hong Kong's Hang Seng Index climbed 3.7 percent to 19502.37, closing at its highest level since September 2008. The Shanghai Composite gained 2.4 percent, Taiwan's TAIEX climbed 1.3 percent.
In Shanghai, 50 stocks surged to the 10 percent trading cap, mainly nonferrous metal, coal, water shares.
Jiangxi Copper (SH:600362, HK:0358) again rose to its 10 percent trading limit in Shanghai. It rose 8.24 percent on Hong Kong. Chinalco (SH:601600, HK:2600, NYSE:ACH) rose to its 10 percent cap on Shanghai and by 7.43 percent on Hong Kong.
China Banking Regulatory Commission chief Liu Mingkang warned banks to boost reserves against non-performing loans while the regulator's Shanghai branch tightened regulations on mortgages for second homes. Bank of Communications (SH:601328) fell 0.8 percent.
Property shares also dropped in Shanghai. Poly Real Estate Group Co., Ltd (SH:600048), dropped 2.02 percent. Beijing Capital Development Co., Ltd. (SH:600376) dropped 3.39 percent. YunNan Metropolitan Real Estate Develepment Co. (SH:600239) dropped 3.07 percent.
Water-related shares surged on expectations of higher water prices. Pan Asia Env Protection Group Limited (Public, HKG:0556) rose 0.82 percent. China Water Affairs Group Ltd. (HK:0855) rose 4.4 percent. Tianjin Capital Environmental Protection (HK:1065) rose 4.9 percent. Ming Hing Waterworks Holdings Ltd. (HK:0402) gained 4.92 percent.
Macau-linked stocks advanced on reports that Las Vegas Sands in planning an initial public offering in Hong Kong next month. Galaxy Entertainment Group (HK:0027) surged 14.2 percent. Melco International Development (HK:0200) gained 6.07 percent. Amax Entertainment Holdings Limited (HK:0959) gained 3.7 percent.
CNOOC (HK:0883) rose by 4.5 percent and Sinopec (HK:0338) by 1.7 percent on news a joint venture of the two companies' parents had bought a 20 percent stake in a collection of oil fields off the Angolan coast for US$1.3 billion.
Alibaba.com Ltd. (HK:1688) China's largest trading Web site, surged 13 percent in Hong Kong on local press reports that the number of online shoppers in the country jumped.
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