Hong Kong rises on back of Wall street, property and commodity gains
The Hang Seng rose 1.9 percent today on the back of gains on Wall Street overnight and a recovery in gold and copper prices. The China Enterprises Index, of top Hong Kong-listed mainland Chinese companies, was up 2.9 percent. Mainland Chinese markets do not re-open until Friday.
Banks made gains. HSBC Holdings Plc (HKG:0005), which accounts for the largest weighting in the Hang Seng Index, increased 1.1 percent. Bank of China (HKG:3988) was up 3 percent. Industrial and Commercial Bank of China (HKG:1398), the world's largest bank by market share, increased 2.6 percent. China Construction Bank (HKG:0939) gained 1.8 percent. China Merchants Bank (HKG:3968) rose 2.9 percent.
Analysts were quoted in local press saying they expect a consolidation of the index, which has risen 62 percent since the beginning of March. The Hang Seng Bank (HKG:0011), today slipped 0.6 percent. China Resources Cement (HKG:0712) ended its first day of trading disappointingly, unchanged from its IPO price of HK$3.90.
Metal stocks rose on a recovery of gold and copper prices, with Zijin Mining Group Co Ltd (HKG:2899) and Zhaojin Mining Industry Co Ltd (HKG:1818) making the largest gains by surged 6.4 and 7.3 percent respectively. Jiangxi Copper Company Limited (HKG:0358), China's largest producer of the metal, rose 4.1 percent.
The state-run China Daily today said that retail prices of almost half of the drugs on the Ministry of Health's essential medicines list will be slashed by 12 percent from October 22 in a move designed to ease the financial burden on citizens seeking basic healthcare. Sino Biopharmaceutical Limited (HKG:1177) rose 13.1 percent today. Northeast Tiger Pharmaceutical Co., Ltd (HKG:8197) was up 4.4 percent. Dawnrays Pharmaceutical (Holdings) Ltd (HKG:2348) gained 3.2 percent.
Hong Kong developers were boosted after the Hong Kong government said the number of property transactions in September jumped 96 percent from a year earlier, while the value of all transactions was up 185 percent. Sino Land (HKG:0083) rose 3.6 percent. Hang Lung (HKG:0101) was up 2.1 percent. New World Development gained 2 percent.
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