Share

Hong Kong stocks eke out gain as Cheung Kong rises

Hong Kong - Hong Kong’s benchmark stock index pared a monthly loss as Cheung Kong Property jumped after reportedly selling an office tower and lenders rebounded. AIA plunged on concern Chinese curbs on the purchase of insurance products will hurt earnings.

The Hang Seng Index gained 0.2% at 08:25, trimming its decline in October to 1.3%. Cheung Kong Property was the best performer on the gauge after the Hong Kong Economic Journal said the developer is set to sell a commercial building for HK$35.7bn.

Bank of Communications climbed after reporting higher profit. AIA sank after China UnionPay halted credit card payments for most insurance policies in Hong Kong. The Shanghai Composite Index trimmed a monthly advance.

Hong Kong stocks have fallen in October as mainland flows into the city through the Shanghai-Hong Kong equity link dried up and investors boosted bets on higher US borrowing costs.

Chinese developers were among the biggest losers as cities rolled out rules to cool property price gains. The declines are a sharp contrast to the previous three-month period, when the Hang Seng Index surged the most in seven years amid expectations the flood of Chinese cash would continue to buoy shares.

"After last week’s pullback below 23 000, there will be some value investors stepping in for a more medium to longer term investment strategy," said Steven Leung, executive director at UOB Kay Hian (Hong Kong).

"We already got third-quarter results from Chinese banks. We don’t expect significant growth in earnings but more importantly there was no deterioration in the quality of the loans."

The Hang Seng Index traded at 22 997.01. A gauge of mainland shares listed in Hong Kong advanced 1%.

Dongfeng Motors led gains on the H-share gauge after Credit Suisse raised its rating to outperform, while HSBC and Goldman Sachs increased their target price.

Cheung Kong Property rallied 3.2%, the most since July. Hong Kong Economic Journal cited unidentified people about the sale, which it said would be the most expensive in the city.

Bank of Communications rose 2.4%. The lender announced on Friday its third-quarter profit rose to 14.9 billion yuan from 14.7 billion yuan a year earlier. China Construction Bank rose 2%, while Bank of China advanced 1.5%.

AIA fell 5.4%. The new restrictions effectively disallow the purchase of almost all kinds of policies with UnionPay cards, including the popular health policies that usually contain a savings component, China International Capital said in a report.

About 50% of fiscal first-half sales by AIA’s Hong Kong unit were generated from Chinese visitors, AIA CEO Mark Tucker said in July.

Guangzhou Auto tumbled 13% after Goldman Sachs cut its target price on the stock, saying the company’s earnings were worse than expected.

Belle International led losses on Hong Kong’s benchmark gauge for the month, falling 11% and taking its slump for the year to 19%.

Last week, the retailer of women’s footwear reported first-half net income of 1.73 billion yuan, down from 2.16 billion yuan a year ago.

On the mainland, PetroChina fell 0.7% after the company reported profit slumped 77% last quarter. Higher earnings from refining and chemicals were overwhelmed by losses on production and weaker performance from its natural gas and pipelines units.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders