Hong Kong stocks opened up by 277 points and expanded the gains despite being volatile. However, the test at the 17,000-line was unsuccessful. The HSI stayed in a narrow range in the afternoon session, and closed at 16,791 points, up 249 points or 1.5%. Turnover fell to $58.4 billion. The HSI index future contract in the spot month closed at 16,705 points, up 274 points and was 86 points lower than the HSI index. 63,167 contracts were traded. The Hang Seng China Enterprise Index closed at 9,607 points, up 159 points or 1.7%.
Stock markets in Asia mostly rebounded. The Nikkei 225 Stock Average closed at 9,265 points, up 171 points or 1.9%. The stock market in Taiwan closed at 6,489 points, up 125 points or 2.0%. The Shanghai A-Share Index closed at 2,777 points, up 6 points or 0.2%.
Blue Chips:
After a period of consolidation, blue chips regained support as pressure on profit-taking eased. 35 out of the 42 constituent stocks were up, active buy orders dropped slightly to 52%, while turnover dropped to $58.4 billion.
Boosted by the rally of financial shares in the US last night, HSBC (5) surged over 3% to $64.30. However, China Mobile (941) retreated in the afternoon and closed at $72.20, down by over 1%.
FIH (2038) rebounded after dropping near the 20-day moving line yesterday. It closed up by 6%, which was the biggest advance among blue chips. Tencent (700) was under selling pressure after rising to a new high and closed slightly down by 0.5%. It was at a record high of $83.15 in the morning session.
Property stocks rebounded. Cheung Kong (1) and SHK PPT (16) were both up by more than 1%. Sino Land (083) rose even more by nearly 6%. Banks were mostly soft. Hang Seng Bank (11) rose slightly by 0.1%. BOC Hong Kong (2388) was almost unchanged, while Bank of East Asia (023) rose by more than 2%.
Chinese stocks:
Mainland banks were all up. CITIC Bank (998) rose by nearly 5%. ICBC (1398) rose by 4%. China Construction Bank (939) rose by nearly 2%. Bank of China (3988), China Merchants Bank (3968) and Bank of COMM (3328) were all up by about 1%. Insurance stocks also rose with the market. China Life (2628) rose by nearly 1%. Ping An Insurance (2318) and PICC P&C (2328) both rose by nearly 2%.
Mainland housing shares were mostly up. R&F Properties (2777) and Shimao Property (813) rose by 2%. Country Garden (2007), Sino-Ocean Land (3377) and China Aoyuan (3883) rose by more than 5%. Greentown China (3900) and Franshion Properties (817) both rose by more than 10%. In addition, Costal GL (1124) surged by 24%, while Zhongan Real Estate (672) rose even more by 41%.
Oil stocks were all up. CNOOC (883) and Sinopec (386) rose by 2%, while PetroChina (857) rose by 1%. CNPC Hong Kong (135) would be injected from its parent company assets of Kunlun gas, boosting its stock price up by 18%. Coal stocks also rose. China Shenhua (1088) stabilized and rose by nearly 1%. China Coal (1898) and Yanzhou Coal (1898) rose by 2%. Hidili Industry (1393) rose by 8%.
Gold mining stocks were mixed as Zijin Mining (2899) fell slightly, Zhaojin Mining (1818) rose by 2% while Lingbao Gold (3330) was flat. Angang Steel (347) and Chongqing Iron (1053) were both up by 1%. Maanshan Iron and Steel (323) rose by nearly 3%. In addition, Chalco (2600) rose by more than 2%. Jiangxi Copper (358) stabilized and rose slightly, while Hunan Nonferrous (2626) was unchanged.
Others:
Water Industry (1129) proposed to acquire the entire interest or part of the interest in 8 sewage treatment plants in Guangdong province as well as a water plant in Tangshan at a total consideration of $660 million. The consideration would be settled by a mixed way in cash and the issue of new shares, convertible preference shares and convertible bonds. If the convertible preference shares and convertible bonds are fully converted, the vendor would hold nearly 64% interest in Water Industry. The share price was stimulated to soar 33%.
There were rumors that shareholder of BYD Company (1211) disposed 11.2 million shares at $25 per share for $280 million in cash, dragging the share price down 2%.
Hua Han (587) proposed a 1-for-2 rights issue with a significant discount to raise $220 million, and the proceeds would be used for the repayment of banking syndicate loans. The share rose 4% despite opening lower.
GCL-Poly Energy (3800) placed new shares with significant discount to raise nearly $80 million, and the proceeds would be used as general working capital and for future business development. The share price was down by 4%. Poly Development Holdings (1141) proposed to issue new shares to raise about $10 million, and the share price soared 32%.
