Hong Kong and mainland markets drift further apart as Shanghai continues rises
Mainland markets continued their rise today, led by consumer-related shares, while the Hong Kong continued to fall.
The Shanghai Comprehensive Index advanced 0.71 percent to a ten-month high of 2787.89. The Small and Medium Enterprises Comprehensive Index added 0.81 percent to 4224.64.
Hong Kong stocks advanced, led by oil producers. The Hang Seng Index declined 1.07 percent to 18058.49. The Hang Seng Growth Enterprises Index dropped 1.40 percent to 567.39. The Hang Seng China Enterprise Index lost 1.53 percent to 10504.32.
It was the second day of divergent moves between mainland A-shares and Hong Kong H shares, bringing the gap between the index' to a three and a half week high of 32 percent. Turnover, however, consistently drifted lower in both markets.
Taiwan's TAIEX Index dropped 3.22 percent to 6414.39.
China Life Insurance Co. (SH:601628;HK:2628), the nation’s largest insurer, surged 5.75 percent on Shanghai trading but declined 1.02 percent on Hong Kong trading. Trading of Ping An Insurance, the seond-largest, was suspended after the company announced to acquire Shenzhen Development Bank (SZ:000001).
Trading of China Eastern Airlines Corp. (SH:600115;HK:0670) and Shanghai Airlines Co. (SH:600591), the dominant carriers in the city was suspended after the two airlines announced to combine. Air China (SH:601111;HK:0753), the world’s second- most valuable airline, surged 7.84 percent on Shanghai but declined 2.11 percent on Hong Kong. China Southern Airlines Co. (SH:600029;HK:1055), the nation’s largest domestic airline, advanced 3.42 percent on Shanghai, but declined 2.31 percent on Hong Kong.
PetroChina Co. (SH: 601857;HK:0857), China’s largest oil producer, dropped 1.31 percent on Hong Kong after crude oil price fell but advanced 0.71 percent on Shanghai.
Jiangxi Copper Co. (SH:600362;HK:0358), China’s largest producer of the metal, declined 2.90 percent on Shanghai and 2.74 percent on Hong Kong.
Zhejiang Hailiang Co.(SZ:002203), a small-cap copper processor, dropped 7.34 percent.
Zijin Mining Group Co. (SH:601899;HK:2899), the nation’s largest gold producer, dropped 0.82 percent on Shanghai and 3.10 percent on Hong Kong. Shandong Gold Mining Co. (SH:600547), the third biggest, lost 4.97 percent.
Shandong Xinhua Pharmaceutical Co.(SZ:000756;HK:0719) surged 10 percent on Shenzhen and 15.96 percent on Hong Kong after the company said profit for the first half of 2009 may increase by 90 percent.
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