China Region Indexes Extend Gains; HSBC Net Doubles

Devan Biswas
28 Feb, 2011
New York City

Stocks in China region closed higher on earnings expectations this week and higher earnings from property developers in Hong Kong. HSBC Holdings said net doubled to $13.2 billion in 2010. Sun Hung Kai said first-half net increased 36%.

[R]4:30 Hong Kong – Stocks in China region closed higher on earnings expectations this week and higher earnings from property developers in Hong Kong. HSBC Holdings said net doubled to $13.2 billion in 2010. Sun Hung Kai said first-half net increased 36%.[/R]

Asian markets rebounded from earlier losses after media reports suggested that rebel held territories in Libya permitted the shipment of oil.

The continued instability in Libya pushed crude oil higher in Asia trading and the yuan firmed.

The Shanghai Composite Index increased 26.50 or 0.9% to 2,905.05 and the CSI 300 Index added 1.3% to 3,239.56.

Hang Seng index in Hong Kong trading closed up 1.4% or 325.65 to 23,338.02 on HK$81.73 billion of volume.

In Hong Kong, HSBS and Hang Seng Bank reported sharply higher profits after the close. Hang Seng 2010 net rose 14% to HK$14.92 billion on higher fees and trading profit.

Standard & Chartered and Hong Kong Exchanges and Clearing is scheduled to release earnings on Wednesday.

Casino stocks in Hong Kong traded higher ahead of monthly revenue statistics from the industry tomorrow.

Stock Movers

Cement makers rose sharply after premier Wen Jiabao said in an interview that China plans to build 36 million affordable homes in the next five years.

Anhui Conch Cement Co increased 1% to 34.61 yuan and Huaxin Cement Co. added 3% to 40.19 yuan.

Home appliances makers rose on positive comments from a GF Securities. Qingdao Haier Co. soared 6.2% to 30.55 yuan and Gree Electric Appliances Inc added 5.2% to 21.10 yuan.

TCL Corp soared 10% to 4.80 yuan after it announced one bonus share fro every share held.

In Hong Kong trading, HSBC rose 1.5% to HK$90.40 after it its 2010 net profit doubled to $13.2 billion on a decline in bad loans.

Tencent increased 3.2% to HK$206 after U.S. based Groupon said it is partnering with the company to set up a site that will offer online discounts from China based merchants.

Sun Hung Kai increased 1.2% to HK$125.80 after first-half net increased 36% from a year ago to HK$21.02 billion on stronger rental market and higher property prices.

Sany Heavy International surged more than 9% after the stock was upgraded by Nomura International.