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Hong Kong shares rise on upbeat global signals, China up too

Source : REUTERS
Last Updated: Fri, Aug 23, 2013 04:50 hrs

* HSI +0.5 pct, H-shares +0.7 pct, CSI300 +0.2 pct

* Cyclicals strong on upbeat global economy outlook

* Shanghai-based companies rise after trade zone approval

* PetroChina falls after H1 results

By Yimou Lee

HONG KONG, Aug 23 (Reuters) - Hong Kong shares rose for a second day on Friday, lifted by cyclical sectors such as energy and properties, as upbeat business surveys from multiple continents spawned optimism about the global economy.

China shares edged higher, aided by strength in Shanghai-based logistics companies after Beijing approved a free trade zone in the country's business hub.

By midday, the Hang Seng Index was up 0.5 percent at 22,011.07 points. The China Enterprises Index of the top Chinese listings in Hong Kong rose 0.7 percent. For the week, they were down 2.3 and 1.8 percent, respectively.

The CSI300 rose 0.2 percent, while the Shanghai Composite Index was up 0.3 percent at 2,073.38 points. On the week, they are now up 0.1 and 0.2 percent, respectively.

"The Hong Kong market will continue to exhibit the pattern of correction and rebound," said Ben Kwong, chief operating officer at brokerage KGI Asia Ltd.

"The movement is very short-term. They are driven by corporate and policy news," he said, adding that the Hang Seng Index may seesaw between 21,500 to 22,500 points in the next few weeks.

Growth-sensitive sectors led the gains in Hong Kong after positive surveys and data from the U.S., Europe and China raised hops the global economy is recovering.

China Coal rose 2 percent while Yanzhou Coal gained 1.6 percent. China Shenhua Energy was up 2.9 percent and Anhui Conch by 2 percent.

Properties were also strong, with Greentown China up 3.4 percent and Poly Property rising 1.7 percent. Henderson Land Development climbed 3 percent even though the company recorded a 4 percent fall in first-half underlying profit.

Shanghai-based companies, such as Shanghai International Port and Jin Jiang Investment, spiked 10 percent - the maximum allowed one-day gain - after the State Council approved a free trade zone for the country's financial centre.

EYES ON EARNINGS

PetroChina Co Ltd reversed early gains and fell 1 percent in Hong Kong after the company reported a first-half net profit of 65.5 billion and said it is optimistic about its natural gas business after the government's first gas price hike in three years.

Car maker Great Wall Motor Company Ltd gained 1.6 percent in Hong Kong and 1.7 percent in Shanghai after announcing a 74 percent increase in first-half net profit.

Haitong Securities Co Ltd saw early gains erased after reporting a 31.6 percent rise in first-half net profit. The stock was down 1.3 percent at midday.

Oil explorer Kunlun Energy Co Ltd rose 1.8 percent after saying its first half net profit rose 5.1 percent.

Agricultural Bank of China , Ping An Insurance Group , China COSCO Holdings and the Industrial and Commercial Bank of China are among companies scheduled to announce earnings next week.




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