Hong Kong rises on financials as September new loans could reach RMB600bn
Financial shares led gains today in Chinese markets but failed to support the Shanghai Comprehensive Index, which slid 0.33 percent to 2754.54. The Hang Seng Index advanced 2.06 percent to 21013.17 with the China Enterprises Index, representing mainland listed companies listed in Hong Kong, advancing 2.01 percent to 11988.37.
Taiwan's TAIEX Index gained 2 percent to 7429.98.
Bank and insurance shares rose on reports that new loans in September may exceed RMB 600 billion. Mainland-listed financial shares climbed 0.55 percent on average while the Hang Sang Financial Index advanced 2.27 percent.
Local banks were the best performers. Bank of Ningbo Co.(SZ:0021402) advanced 5.30 percent. Bank of Nanjing Co.(SH:601009) gained 4.14 percent.Bank of Beijing Co.(SH:601169) surged 3.51 percent.
Chinese banks may have issued more than RMB 600 billion of new loans in September, the National Business Daily reported today, citing estimates by the Agricultural Bank of China's strategic management department, with loans for buying homes and cars possibly reaching a new record. Local-currency new loans were RMB 410.4 billion in August, up from 355.9 billion yuan in July.
Industrial and Commercial Bank of China (SH:601398;HKG:1398), the world's largest lender, rose 0.42 percent in Shanghai and 3.30 percent in Hong Kong. China Construction Bank (SH:601939;HKG:0939), the second-biggest, advanced 0.36 percent in Shanghai and 1.46 percent in Hong Kong. Bank of China (SH:601988;HKG:3988), China's third-largest lender, gained 0.26 percent in Shanghai and 2.23 percent in Hong Kong.
Central Huijin Investment Ltd, the domestic arm of China's sovereign wealth-fund, bought additional shares equivalent to 0.08 percent of ICBC, 0.03 percent of BOC and 0.06 percent of CCB's total share capital in the past twelve months ended Sept 22, the China Daily reported today. It launched the rescue scheme on Sept 23 last year in a bid to bolster share prices that plummeted after the outbreak of the global financial crisis.
HSBC (HKG:0005), Europe's largest bank, gained 2.64 percent. Bank of East Asia (HKG:0023) advanced 2.01 percent.
China Life Insurance Co.(SH:601628;HKG:2628), world's largest insurer, climbed 0.62 percent in Shanghai and 1.79 percent in Hong Kong. Ping An Insurance Group Co.(SH:601318;HKG: 2318), China's second-biggest insurer, gained 1.60 percent in Shanghai and 2.38 percent in Hong Kong. China Pacific Insurance (Group) Co.(SH:601601), the third-largest, advanced 4.11 percent.
BYD Co.(HKG:1211),a battery and car maker, advanced 2.75 percent today. Wang Chuanfu, founder of the company, jumped 102 places to top the annual Hurun Rich List last night of China's wealthiest after an investment by Warren Buffett last year led to a five-fold surge in his company's shares.
Another company blessed by the Buffet effect, Dalian Dayang Trands Co.(SH:600233) - a manufacturer of men's suits - dropped to the 10 percent trading floor today. Shares of the company had soared 75 percent in nine days after Mr Buffett praised the company's suits in a video congratulating the company and Chairman Li Guilian on the company's 30th anniversary.
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