Hong Kongs drops while Shanghai rises on Ping An deal
Hong Kong ended a three-day rally on slumping commodity prices while mainland markets rose for the first time in three days, led by banks as Ping An Insurance (SH:601318) moved to buy a stake in Shenzhen Development Bank (SZ:000001), raising hopes for consolidation in the finance sector.
The Shanghai Comprehensive Index advanced 167 percent to 2789.556t. The small and medium enterprises SME Comprehensive Index added 1.85 percent to 41251.70.
The Hang Seng Index declined 2.07 percent to 18498.96. The Hang Seng Growth Enterprises Index retreated 1.94 percent to 585.93. The Hang Sang China Enterprise Index lost 1.90 percent to 10877.54.
Taiwan's TAIEX Index dropped 3.45 percent to 6225.56.
PetroChina Co. (SH:601857; HK:0857), the nation’s largest oil producer, added 0.22 percent on Shanghai trading but lost 3.33 percent on Hong Kong trading. Jiangxi Copper Co.(SH:600362;HK:0358) lost 1.58 percent on Shanghai and 4.45 percent on Hong Kong.
Aluminum Corp. of China Ltd. (SH:601600;HK:2600), the publicly traded unit of the nation’s biggest producer of the metal, dropped 1.56 percent on Shanghai and 4.49 percent on Hong Kong.
Banks rise as Ping An increases Shenzhen Development stake to 30 percent
Ping An Insurance (Group) Co. (SH:601318;HK:2318), China’s second- largest insurer, rose 2.28 percent on Shanghai but fell 3.22 percent on Hong Kong.
The insurer agreed to buy as many as 585 million new shares from Shenzhen Development Bank Co. (SZ:00001) for RMB10.7bn (US$1.6 billion), bringing its holding to 30 percent, according to a statement on June 12. Both the companies resumed trading today after being suspended on June 8.
Hua Xia Bank (SH:600015) rose 8.2 percent. China Merchants Bank (SH:600036) climbed 7.6 percent. China Construction Bank (SH:601939) jumped 8.1 percent.
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