Hong Kong rises with gold, exporters and housing
The Hong Kong market rose for a third day, following overnight gains on Wall Street. The Hang Seng Index rose 2.1 percent to 21,241.59 points. The Hang Seng China Enterprise Index, which tracks 43 mainland state-owned enterprises listed in Hong Kong was up 2.7 percent. The mainland markets are closed for the Chinese National Day holiday until Friday.
Gold stocks made the largest gains after gold prices reached record highs of US$1,045 per ounce overnight. Zijin Mining Group Co (HKG:2899), China's largest gold producer, rose 4.4 percent. Zhaojin Mining Industry Co (HKG:1818) was up 4.8 percent. Lingbao Gold Company Ltd. (HKG:3330) rose 4.7 percent.
The Asian Development Bank predicted today that China's exports are likely to switch from negative to positive growth in the fourth quarter this year. Exports in August were 23.4 percent lower than last year. The bank forecast China would see its export down a total of 17.5 percent for the whole of 2009 but that 2010 would see an overall rise of 8 percent from 2009.
One tactic to boost exports has been the increase in tax rebates for exporters. Prior to the financial crisis China had been reducing rebates for exporters of all but high-tech industries. But in the first eight months of 2009, rebates increased by 8.6 percent, the State Administration of Taxation announced today.
Li & Fung Ltd. (HKG:0494), the largest supplier of clothes and toys to Wal-Mart stores rose 7.2 percent. Dream International Limited (HKG:1126), another toy exporter, rose 12.3 percent.
According to China Index Academy, affiliated to retail website SouFun.com, house prices in September were up from the previous month in Shenzhen, Chongqing and Beijing. The Hang Seng property and construction index was up 2.5 percent –making the largest gain of all the industry indexes.
SOHO China Ltd (HKG:0410) was up 2.4 percent. Beijing North Star (HKG:0588) rose 2.6 percent. Henderson Land Development (HKG:0012) gained 2.2 percent.
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