Business
Shares of Hong Kong Drift at 5-Month High, China also up
On Tuesday, the shares of Hong Kong drifted at a 5-month high, hoisted by the power in the Chinese property stocks following improvement in sales of homes in the mainland.
However, the profits on the index were capped by a drop in banking stocks as the investors sought out for gains from a rally previous week on reports that a unit of sovereign wealth fund China Investment Corp, Central Huijin will hike the stakes in the ‘Big Four’ banks of China.
The CSI300 of the leading Shenzen and Shanghai listings progressed 0.8% in the mainland, while Shanghai Composite Index profited 0.6%.
Hang Seng Index increased to 21,208.8, indicating an increase of 0.3% at mid-day after the peak intra day levels were briefly tested since May 2nd. The leading Chinese listings of China Enterprises Index in Hong Kong edged up 0.1%.
The volumes were largely focused on Chinese property and banking sectors even as wider turnover remained dull in both of these markets.
Haitong International Securities’ equity strategist, Edward Huang said that investors were boding with those sectors, for which they have a reason to be sure of. Such a rotation indicates that they are also placing themselves for the subsequent leg up.
China Resources Land increased 4.4%, while China Overseas Land profited 2.6% following the improvement of property transactions of the property consultancies Soufun and Centaline in the mainland. Both these stocks were stragglers in the previous week, dropping 2.2% and 3.7% respectively as against Hang Seng Index’s 0.6% profit.
China Resources Land went up 37% for the year after 2 consecutive yearly losses, but it is trading at still a forward twelve-month earnings multiple, as per Thomson Reuters StarMine.
The Chinese banks were mostly weaker. China Construction Bank (CCB) was down 0.2% in Shanghai and 1.6% in Hong Kong. CCB experienced its best week during the last week in Hong Kong, increasing 5.3%.
Ping An Insurance Inches Up
Ping An Insurance climbed 0.7% in Shanghai and 0.8% in Hong Kong after it posted a 12% growth in September’s premium income as against a year back.
It reported a 17% gain in life insurance premiums in the 3rd quarter as against a year back, up from 10% in 2nd quarter and 2% in the 1st.
The analysts from Barclays Capital said that overall those figures indicated the volume growth of Ping An could be turning constructive, which is expected to enhance its outlook of New Business Value (NBV).
