Shanghai, HK Markets Gain

123jump.com Staff
23 Mar, 2009
New York City

Stocks in Hong Kong and Shanghai rose on the prediction that the recent government stimulus will add between 1.5% and 1.9% in economic growth. Separately, Hong Kong balance of payment surged in the three months to December on a steady rise in financial inflows. In Hong Kong trading financials fell.

6:00AM New York, 6:00PM Hong Kong - Hong Kong surplus rises HK$147.3 billion in Q4 of 2008. China stimulus plan is likely to increase economic growth by 1.9% in 2009.[/R]

Hong Kong and Shanghai benchmark index rose on expectations that China’s stimulus measures will increase economic growth by 1.9% this year.

Market Sentiment

In Hong Kong trading Hang Seng Index gained 4.8% or 613.91 to 13,447.42, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, gained 6.2% or 463.95 to 7,959.91. In Shanghai trading CSI 300 index edged up 2.5% or 59.56 to 2,439.40.

Daily turnover on main-board surged to HK$55.31 billion from HK$43.89 billion on Friday last week.

Stimulus to Spur 1.9% to Economic Growth

Xinhua News Agency reported today that the president of the Development Research Centre of the State Council in Beijing Zhang Yutai said the Rmb4 trillion stimulus package is expected to contribute 1.5% to 1.9% to economic growth this year.

HK Surplus Soars to HK$147.3 billion in Q4

The Census and Statistics Department reported today that it recorded a surplus of HK$147.3 billion in its balance of payment account for the three months to December at 33% of the Gross Domestic Product from HK$51.3 billion in the third quarter.

Current account surplus in the period was HK$80.5 billion or 18.5% of GDP from HK$75.3 billion in the third quarter.

Net inflow of financial non-reserve assets soared to HK$73.9 billion or 16.9% of GDP from HK$49.2 billion in the third quarter.

For 2008, the balance of payment surplus increased to HK$263.9 billion in the three months to December from HK$114.5 billion in the comparable year ago period.

The visible trade deficit fell to HK$30.6 billion in the fourth quarter as imports of goods decreased faster than exports of goods, while the invisible trade surplus advanced to HK$99.7 billion from HK$95.8 billion in the same period a year earlier.

In addition, the report noted that fourth quarter reserve assets edged up by HK$147.3 billion from HK$ $51.3 billion a year ago, while in 2008 reserve assets increased by HK$263.9 billion, as compared with an accumulation of HK$114.5 billion a year ago.

HK to Invest HK$50 million in Tourism

Hong Kong’s permanent secretary for commerce & economic development Yvonne Choi says The Tourism Commission will invest HK$50 million in 2009 to 2010 to implement the Tourism District Enhancement Program.

The money will be channeled towards the enhancement of public facilities at Ngong Ping and footbridges in Tsim Sha Tsui East, including visitor signage improvement scheme.
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Gainers & Losers

HSBC rose 0.6% to HK$41.7 as its offering rights increased to HK$13.2 during its trading debut.

China Mobile rallied 4.9% to HK$66.2.

Financial stocks declined. ICBC climbed 6.3% to HK$3.53, Bank of China increased 2.6% to HK$2.33, China Construction Bank surged 7% to HK$4.45, Bank of Communications edged up 6.3% to HK$5.2 and China Merchant Bank jumped 4.1% to HK$13.2.

China Life increased 5.1% to HK$25.65 and Ping An 7.4% to HK$47.25.

BOC Hong Kong rose 3.9% to HK$7.76, Standard Chartered Bank soared 3.1% to HK$102.2, Hang Seng Bank soared 3.8% to HK$79, and Bank of East Asia 5.8% to HK$14.64.

Hong Kong Exchanges and Clearing Ltd gained 6.1% to HK$68.95.

Hong Kong properties developers increased in trading. Sung Hung Kai Property soared 7.1% to HK$69.5, Cheung Kong rallied 8.2% to HK$68.3, Henderson Land climbed 8.8% to HK$28.5 and Sino Land edged up 7.5% to HK$7.3.