Hong Kong rises to 11-month high, Shanghai continues losses on fiscal uncertainty
Hong Kong soared today, led by telecoms on news that China Mobile would probably float on Shanghai this year, while mainland stocks sank for a second day after the central bank said in a quarterly report it will fine-tune monetary policy where necessary and guide loan growth.
The Hang Seng Index ended up 2 percent at 20,899.24, its highest close since September 2008. The China Enterprises Index, which represents top Hong Kong listed mainland Chinese stocks, however, rose only 0.7 percent. Blue-chip ICBC (HK:1398) dropped 1.3 percent.
The Shanghai Composite Index fell 2.1 percent, led by blue-chips and steel makers while property shares raised the raised a little from initial lows. Losers outnumbered winners by 714 to 217. In addition to the People's Bank quarterly report, an article in the government-controlled newspaper the People's Daily mentioned the risk an asset bubble.
The Shenzhen Composite Index dropped 1.62 percent. Taiwan's Taiex index dropped 1.55 percent.
In Hong Kong, China Mobile (HK:0941) jumped 7.5 percent on news it may list in Shanghai by the end of this year. Other Chinese telecoms also rose on the news. China Unicom (HK:0762) rose 7.9 percent and China Telecom (HK:0728) jumped 6.4 percent.
Steel shares declined 4.15 percent on average on the mainland markets. In Shanghai, Baoshan Steel (SH:600019) fell 4.9 percent. Jiangxi Copper (SH:600362) fell 4.6 percent in Shanghai.
China's largest real estate developer, China Vanke (SZ:200001), rose 1.1 percent. Gemdale Corporation (SH:600383) jumped 6.35 percent.
Nonferrous metals listed on mainland markets lost 4.75 percent on average. Chinalco (HK:2600, SH:601600) was down 5.3 percent in Shanghai. Yunnan Aluminium Co. (SH:000807) was down 7.1 percent.
Related news
- Shenzhen up 1.1pct as brokerages support mainland markets while Hong Kong falls on real estate concerns
- Mainland and Hong Kong markets fall most in weeks
- Mainland stock mixed, pharma shares up as U.S. declares H1N1 national emergency
- China markets rise as Shenzhen launches Growth Enterprise Board and hot money starts flowing in again
- China markets slip again despite 8.9pct growth figure for third quarter
- China markets down on profit taking and crude oil drop
- China markets up as Hang Seng property index surges 5.8pct and mainland financials rise gain 2pct
