Shenzhen up 1.1pct as brokerages support mainland markets while Hong Kong falls on real estate concerns
Mainland markets were stable today as strong earnings from brokerages and coal miners strengthened the Shanghai index. Hong Kong, however, fell by the most in three weeks on real estate concern due to the administration's tightening of down-payment requirements on high-end homes.
The Shanghai Comprehensive Index climbed 0.3 percent to 3031.33. The Shenzhen Composite Index jumped 1.1 percent to 1,067.14.The Hang Seng Index declined 1.8 percent to 21761.58. The Hang Seng China Enterprises Index, representing large mainland companies listed on the Hong Kong stock exchange, retreated 2.4 percent to 12831.18.
Taiwan's TAIEX Index declined 1.61 percent to 7533.95.
The Hang Sang Property Index lost another 2.2 percent. Sun Hung Kai Properties Ltd.(HKG:0016), Hong Kong's biggest property developer by market value, dropped 1.9 percent. Cheung Kong (Holdings) Ltd. (HKG:0001), the second biggest, retreated 2.7 percent.
China Shenhua Energy Co.(SHA:601088; HKG:1088), the nation's biggest coal producer, advanced 1 percent in Shanghai trading after profit in the first nine months increased by 12.7 percent. Inner Mongolia PingZhuang Energy Resources Co.(SHE:000780) climbed 8.3 percent. The coal miner said last Saturday that earnings per share for the first three quarters increased by 2.9 percent year-on-year.
Hongyuan Securities (SHE:000562) advanced 4.4 percent after announcing that earnings per share for the first three quarters increased by 112.7 percent year-on-year. Guoyuan Secutities (SHE:000728) gained 6.5 percent after the broker yesterday said earnings per share had increased by 74.5 percent. Northeast Securities (SHE:000686) climbed 3.7 percent. Last Thursday it reported net earnings increased by 83.63 percent in the first three quarters.
Brokers will also benefit from the launching of the Growth Enterprises Board. The 28 new shares to float this Friday hired 24 brokers as their Nominated Adviser, paying RMB500m for investment services.
Citic Securities (SHA:600030) gained 1.8 percent today. The nation's largest broker benefited the most from the growth enterprise board. Haitong Securities (SHA:600837), the second-largest, rose 2.5 percent. Guojin Securities (SHA:600109) climbed 5.3 percent.
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