Learn Chinese online - Red chips lead H-shares higher after 3-day retreat

BIZCHINA / News

Red chips lead H-shares higher after 3-day retreat

(Xinhua)
Updated: 2007-06-29 09:09

Hong Kong shares close higher on Thursday after a three-day retreat, led
by China Mobile on continued hopes for a mainland listing and
outperforming CNOOC on high oil prices overnight and a target upgrade.

The benchmark Hang Seng Index rose 232.66 points, or 1.07 percent, to
close at 21,938.22 after trading between 21,885.53 and22,035.42 during
the session, with an increased total market turnover of 80.46 billion HK
dollars.

All the four major stock categories gained ground. The Finance moved up
261.68 points, or 0.78 percent to close at 33,712.64. The Utilities went
93.48 points, or 0.26 percent higher to 35,409.51. The Properties rose
113.21 points, or 0.45 percent to 25,467.34. The Commerce and Industry
went up 187.77 points, or 1.54 percent to 12,384.89.

Related readings:
Bourse issued caution for H-share investment
Return of red chips likely in August
A plus H index to be launched soon

Special Coverages:
Markets Watch 

The blue-chip Hang Seng Index rose 232.66 points, or 1.07 percent, to
21,938.22 after trading between 21,885.53 and 22,035.42 during the
session.

Traders said investors hunted for bargains after the blue-chip index shed
294 points over the past three sessions.

The rise in the Hang Seng might also be partly due to futures-related
buying as the June Hang Seng futures is settling today,' said YK Chan, a
fund manager at Phillip Asset Management.

HSBC rose 0.4 percent to 143.50 HK dollars as Chairman Stephen Green's
comments Wednesday on the bank's plans were largely in line with market
expectations. Green said HSBC is working toward lifting its stake in Bank
of Communications back to 19.9 percent and that it has no intention to
spin off its Asia unit. But traders said the market is interested in the
lender's potential expansion plan after Green said HSBC is interested in
buying ABN Amro's Brazilian operations if they come up for sale
independently.

China Mobile, the world's largest wireless phone operator by subscribers,
led the market higher with a 1.74 percent rise to 84.90 HK dollars. The
stock has risen 17 percent over the past month, playing catch up with
other telecom operators and on the prospect of a yuan-denominated initial
public offering in Shanghaisoon.

Oil major CNOOC rose 4.1 percent to 8.81 HK dollars on stronger oil
prices overnight and after Lehman Brothers upgraded the stock's target to
8.50 HK dollars from 7 HK dollars on expectations for higher oil prices.

Chinese financial stocks advanced as the People's Congress reviewed
whether to authorize the State Council to suspend or cut interest rate
tax. China Construction Bank rose 2.1 percent to 5.42 HK dollars. Ping An
jumped 3.4 percent to 55.40 HK dollars. China Life gained 1.2 percent to
28.95 HK dollars.

Red-chip conglomerate Shanghai Industrial surged 5.6 percent to27.30 HK
dollars. The stock rose on news it will buy a 40 percent stake in
state-owned Shanghai Urban Development, a first step in re-channeling
funds from the sale of its non-core assets into the property sector.

Traders said the index will likely be capped at the psychologically
important resistance level of 22,000 ahead of the 10th anniversary of
Hong Kong's return to its motherland on July 1.

Mainland automobile maker Qingling Motors surged 16 percent to 2.20 HK
dollars after the Shanghai Securities News reported Wednesday that the
company plans to issue yuan-denominated shares in China after an asset
injection from major shareholders.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Learn Mandarin online