China markets up as Hang Seng property index surges 5.8pct and mainland financials rise gain 2pct
China's stocks advanced, led by financial shares in mainland markets and property shares in Hong Kong, driving benchmark indices to new highs. The Hang Sang Property Index climbed a staggering 5.8 percent.
The Shanghai Comprehensive Index added 1.5 percent to 3084.45, the highest in two months. The Hang Seng Index added 0.8 percent to 22384.96, the highest in 14 months. The Hang Seng Growth Enterprises Index climbed 1.1 percent to 690.28. The Hang Seng China Enterprises Index, representing large mainland companies listed in Hong Kong, advanced 0.71 percent to 13039.96.
Taiwan's TAIEX Index gained 0.03 percent to 7753.52.
The Hang Sang Property Index climbed 5.8 percent, the biggest gain since April 2, as luxury home prices in Hong Kong rose to a record on low interest rates and demand from Chinese buyers.
Henderson Land Development Co.(HKG:0012), controlled by Hong Kong billionaire Lee Shau-kee, gained 3.3 percent. Henderson sold a duplex apartment for HK$88,000 a square foot to a Hong Kong-registered company with a mainland Chinese background, Thomas Lam, Henderson's general manager for sales, said last week.
Hang Lung Properties (HKG:0101) rose 3.6 percent. Local broadcaster RTHK recently quoted the company's chairman Ronnie Chan as saying that he doesn't see a bubble in the city's luxury-property market.
Sun Hung Kai Properties Ltd. (HKG:0016), the world's biggest developer by market value, advanced 7.7 percent.
Cheung Kong Holdings Ltd.(HKG:0001), the developer controlled by Hong Kong billionaire Li Ka-shing, climbed 7.1 percent.
Mainland-listed financial shares gained 2 percent on average. Banks, insurers and brokerages all made gains.
Industrial & Commercial Bank of China (SHA:601398; HKG:0398), the world's biggest lender, gained 2.2 percent in Shanghai trading and 2.4 percent in Hong Kong. Allianz and American Express yesterday said they have no immediate plans to sell their stakes in the bank, which have a combined value of about US$3.1bn.
Bank of China (SHA:601988; HKG:3988), the nation's third-largest bank, climbed 1.7 percent in Shanghai and 1.3 percent in Hong Kong. Zhu Min, a former vice president of Bank of China Ltd., will become a deputy governor at the central bank, the People's Bank of China said.
China Merchants Bank (SHA:600036), the nation's fifth-biggest bank by value, gained 4.7 percent. The bank today announced it had won approval to raise up to RMB 22 billion in a rights offer.
China Life Insurance Co.(SHA:601628; HKG:2628), the nation's largest insurer, climbed 3.4 percent in Shanghai trading. Ping An Insurance (SHA:601318; HKG:2318), the second-largest, gained 1.8 percent in Shanghai and 0.7 percent in Hong Kong.
Southwest Securities Co. (SHA:601369) advanced 2.3 percent after announcing the opening of two new branches. Everbright Securities Co. (SHA:601788), gained 2.7 percent.
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