China financials up as real estate shares bring down mainland markets
Financial shares rose today, pushing Hong Kong’s stock index up, while property shares dropped, dragging mainland indices down.
The Shanghai Comprehensive Index declined 0.67 percent to 2797.32. The small and medium enterprises SME Comprehensive Index lost 0.43 percent to 4258.42.
The Hang Seng Index climbed 0.03 percent to 18791.03. The Hang Seng Growth Enterprises Index rose 3.35 percent to 597.82. The Hang Seng China Enterprises Index added 0.43 percent to 11080.84.
Taiwan's TAIEX Index advanced 1.63 percent to 6567.37.
China COSCO Holdings Co. (SH:601919;HK:1919), the world’s largest operator of dry-bulk ships, lost 3.29 percent on Shanghai and 1.52 percent on Hong Kong. Overseas shipments declined 26.4 percent last month from a year earlier, the customs bureau said.
Air China (SH:601111;HK:0753), the nation’s largest international carrier, dropped 3.92 percent on Shanghai and 0.26 percent on Hong Kong.
Financials rise
The Hang Sang Financial Index advanced 0.67 percent while mainland-listed financial shares gained 0.95 percent on average.
Industrial and commercial Bank of China (SH:601398;HK:1398), the world’s biggest lender by market value, added 1.39 percent on Hong Kong trading and 1.70 percent on Shanghai trading.
Bank of Communications (SH:601328;HK:3328), China’s fifth-biggest lender, added 3.13 percent on Shanghai and 0.38 percent on Hong Kong.
HSBC (HK:0005), Europe’s largest bank, gained 4.30 percent.
Property falls
The Hang Sang Property Index dropped 1.61 percent while mainland-listed property shares declined 1.99 percent on average.
Hang Lung Properties Ltd. (HK:0101), Hong Kong’s fifth-largest builder, lost 4.84 percent. Shui On Land (HK:0272), chaired by Hong Kong real estate billionaire Vincent Lo, declined 3.05 percent. Poly Real Estate Group Co. (SH:600048), China’s second-largest developer by market value, dropped 3.7 percent. China Vanke Co. (SZ:000002), China’s largest developer by market value, declined 2.94 percent. Gemdale Co. (SH:600383), the fourth largest, dropped 6.08 percent.
Construction shares correct, despite positive May data
Figures released today shoe that urban fixed-asset investment climbed 32.9 percent in the five months to the end of May from a year earlier. The forecast was generally 31 percent, however rumours of the 32.9 percent figures brought construction shares up sharply yesterday.
Today saw a slight correction with construction shares declined 2.31 percent on average; steel shares losing 1.81 percent on average and cement shares dropping by 3 percent on average.
Shanghai Allied Cement Ltd. (HK:1060), dropped 5.48 percent.
Another head rolls in Huang Guangyu scandal
Shenzhen mayor, Xu Zhongheng, has been removed from his post for “serious disciplinary violations" and is being interrogated for alleged links to embattled GOME founder Huang Guangyu, who has been detained since last Autumn for alleged financial crimes including stock manipulation.
Related news
- Shenzhen up 1.1pct as brokerages support mainland markets while Hong Kong falls on real estate concerns
- Mainland and Hong Kong markets fall most in weeks
- Mainland stock mixed, pharma shares up as U.S. declares H1N1 national emergency
- China markets rise as Shenzhen launches Growth Enterprise Board and hot money starts flowing in again
- China markets slip again despite 8.9pct growth figure for third quarter
- China markets down on profit taking and crude oil drop
- China markets up as Hang Seng property index surges 5.8pct and mainland financials rise gain 2pct
