Hong Kong Surge of 4.1% Leads Asia

123jump.com Staff
29 Nov, 2007
New York City

Hong Kong stocks led the region with a sharp rise in Han Seng Index of 4.1% or 1,111.30 to 28,482.54. Property stocks rallied on the news speculation that the U.S. interest rate is likely to to be lowered in the next meeting in two weeks. Sino Land surged 9%, Hang Leung gained 8%, and Sung Hung Kai added 4.5% on the rate cut expectations. Hong Kong interest rates are tied to the rates in the U.S.

[R]6:00AM New York, 7:00PM Hong Kong- Gains on Wall Street lifts Hong Kong up 4.06% [/R]

Stocks in Hong Kong gained on expectations that the U.S. Federal Reserve will cut its key rate at its December 11 meeting and on comments by the vice mayor of Tiajin Cui Jindu that the “through trade” program allowing mainland individuals to trade in Hong Kong equities would proceed.

In Hong Kong Hang Seng Index surged 4.06% or 1,111.30 to 28,482.54. Only one in the 40 stocks fell in the index.

Realty stocks led the gainers on the speculation that the U.S. Federal Reserve would cut its borrowing costs, stoking expectations the Hong Kong Monetary Authority official rate would climb down as the rates are in sync with those in the U.S.

Sino Land rose 9.3% to HK$27, Hang Lung Properties gained 7.8% to HK$34.45, and Sung Hung Kai surged 4.5% to HK$159.

Vice mayor of Tianjin Cui Jindu said today at a business conference in Beijing that the northern Chinese port city would proceed with the “through trade” program that is meant to allow mainland nationals with the Bank of China Limited to buy stocks in Hong Kong as a way to divert excess funds in offshore.

China Unicom Limited rose 8.5% to HK$11.32, China Mobile Limited jumped 4.2% to HK$5.60, and China Life Insurance Company rose 6.3% to HK$42.45.

The Standard news reported today ports-to-property conglomerate Wharf Holdings said yesterday it would raise about HK$9.1 billion by issuing 305.9 million shares that will be used in the expansion of mainland property projects. The company also announced that the underlying profits, excluding revaluation surplus rose 30% to HK$4.02 billion in the first three quarters, while net profit was at HK$7.55 billion. The company traded up 6.5% at HK$ 43.10.

Bank of Communications Limited rose 5.4% to HK$12.50 after HSBC executive director Peter Wong said the company aims to increase its stake in the company from the current 18.1% equity to 19.9%.

The Hong Kong Economic Journal reported today that Hutchison Whampoa Limited might buy stakes in property projects in the northern port city of Tianjin. The company firmed 4.3% to HK$90.

Xinyi Glass Holdings Co climbed 7.4% to HK$8.91 after brokerage Macquarie Securities increased its rating on the company to “outperform”.

Fortune Telecom Holdings Limited dropped after the mobile phone concern announced today it expects a loss for the year ending December.

Bloomberg news reported today Far Eastern Group Chairman Douglas Hsu announced today that the Taiwan based Asia Cement Corp would spin off its China unit to raise $300 million in an IPO in Hong Kong in the first quarter. The company added that it plans to sell shares of Far Eastern Department Stores Company China unit in Hong Kong next year.