Hong Kong stocks hit 4-month high, infrastructure firms rally

Sinotrans

09/02/2017 08:08

Feb 9 (Reuters) - Hong Kong stocks hit a four-month high on 
Thursday with mainland companies outperforming, as expectations 
of further yuan depreciation continued to nudge Chinese 
investors into the city's stocks.  
    The benchmark Hang Seng index  .HSI  reached an intraday 
high of 23,644.63 points, the highest since Oct. 11, 2016. 
    The index closed up 0.2 percent to 23,525.14, while the Hong 
Kong China Enterprises Index  .HSCE  settled at its highest 
level since November 2015, rising 1.2 percent, at 10,075.17 
points. 
    Nearly all sectors gained ground at the close, with 
industrial stocks  .HSCIIG  among the best performers.      
    Construction stocks gained as regulatory authorities 
signalled supply-side reforms. Industry bellwether Anhui Conch 
Cement Co Ltd  0914.HK  gained 4 percent.  
    Stocks related to the "One Belt, One Road" theme rallied, 
with shipping firms leading the gains. COSCO SHIPPING Holdings 
Co Ltd  1919.HK  and Sinotrans Ltd  0598.HK  added about 11 
percent and 9 percent, respectively. 
    "Some speculators entered the market today after the Hong 
Kong stock market had a solid performance yesterday, especially 
in blue chips," said Steve Leung, director at UOB Kay Hian 
Holdings, adding that rising capital inflows from the mainland 
also lent some support.  
    The index measuring price differences between dual-listed 
companies in Shanghai and Hong Kong  .HSCAHPI  stood at 120.49, 
the lowest in one month, indicting a narrowing of Chinese 
shares' premium over their Hong Kong counterparts.     
    A value above 100 indicates Chinese shares were priced at a 
premium compared to shares of the same company traded in Hong 
Kong. 
 
 (Reporting by Jackie Cai and John Ruwitch; Editing by Randy 
Fabi) 
 ((Jackie.Cai@thomsonreuters.com; +86 021 6104 1775)) 
 
Keywords: CHINA STOCKS/HONGKONG CLOSE