Heavyweights lead Hong Kong recovery, Shanghai continues slide
The Hong Kong market made a recovery today with the Hang Seng up 2.7 percent to finish at 11-month closing. Mainland stocks however continued to declined for a fourth day, led by real estate developers - with the Shanghai Composite falling 0.3 percent.
The China Enterprises Index, which represents top Hong Kong listed mainland stocks, was up 2.5 percent. Taiwan's Taeix index was up 0.21 percent led by cement and construction shares as the island recovers from a typhoon.
Financials led in Hong Kong. HSBC (HK:0005) was up 3.2 percent. ICBC (HK:1398) rose 3.1 percent. Bank of China (HK:3988) lifted 3 percent. Other strongly weighted blue-chips also rose, including China Mobile, gaining 3.4 percent, and Shenhua Energy, which rose 2.8 percent on the back better-than-expected preliminary results.
On the mainland, Poly Real Estate (SH:600048) dropped 2.5 percent despite announcing sales increased 143 percent year on year in the first 7 months. China Vanke (SZ:200002) was down 2.7 percent. Banks also dropped, including Shanghai Pudong Development Bank, which was down 1.8 percent.
Despite the drop, winning shares outnumbered losers by 560 to 362 while turnover dropped considerably down to RMB152.6bn from Friday's RMB184.3bn.
Sugar shares rallied today after sugar options rose as much as 40 percent after damaged crops in India to Brazil mean global demand will exceed supply for a second year. Nanning Sugar Industry (SZ:000911), rose to the 10 percent trading cap. Guangxi Guitang (SZ:0008330) was up 8.9 percent. In Hong Kong Xiwang Sugar Holdings (SZ:2088) was up 11.2 percent. Global Sweeteners Holdings (HK:3889) was up 5.22 percent.
Metals shares also rallied on both exchanges. Jiangxi Copper (SH:600362, HK:0358) was up 3.9 percent in Shanghai and 6.13 percent in Hong Kong. Aluminium, producers rose, with Chinalco (SH:601600, HK:2600) up 3.6 percent in Shanghai and 5.6 percent in Hong Kong. Henan Zhongfu (SH:600595) rose to the 10 percent cap. Hunan Non-ferrous metals (HK:2626) was up 2.6 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
