Hong Kong shares track Asia peers higher; tech rebounds, property up on housing plans

Sun Hung Kai Properties

07/10/2021 09:44

Oct 7 (Reuters) - Hong Kong stocks on Thursday notched their
biggest daily percentage gain in 10 weeks, tracking Asian peers
higher, with technology shares rebounding while major property
developers jumped after the financial hub's leader unveiled a
new housing policy. 
    
    ** The Hang Seng Index  .HSI  rose 3.07% to 24,701.73, the
highest close in nearly three weeks, while the China Enterprises
Index  .HSCE  jumped 3.57% to 8,713.05. 
    ** Mainland Chinese markets were closed for a public
holiday, and MSCI's broadest index of Asia-Pacific shares
outside Japan  .MIAPJ0000PUS  rose 1.9%.
    ** Fund giant Fidelity is putting money back into Chinese
stocks and thinks the recent "indiscriminate" selling caused by
the debt crisis at Evergrande  3333.HK  is presenting
opportunities in the country's beaten-up bond markets.
 urn:newsml:reuters.com:*:nL8N2R21Y3
    ** Meituan  3690.HK  jumped 9.7%, Alibaba  9988.HK  surged
7.3%, Tencent  0700.HK  rose 5.6%, sending the Hang Seng Tech
Index  .HSTECH  up 5.2% - the best day since Aug. 24.
    ** "Considering the series of recent regulatory actions from
the Chinese government, we don't think that regulatory risks for
Chinese companies are over. But we think that, following the
downdraft in prices, the margin of safety provided among many
Chinese ADRs more than adequately compensates investors for the
added risks," said Dave Sekera, Morningstar's Chief U.S. Market
Strategist. 
    ** Henderson Land  0012.HK  led gains in Hong Kong property
developers, surging 7.1%. Sun Hung Kai Properties  0016.HK , New
World Development  017.HK , Hang Lung Properties  0101.HK , and 
CK Asset  1113.HK  climbed between 1.2% and 3%.   
    ** Hong Kong leader Carrie Lam announced on Wednesday plans
of a Northern Metropolis on the border with the mainland's
technology hub of Shenzhen, covering 300 square kms (116 square
miles). It is expected to have around 926,000 homes - more than
half to be newly built - for some 2.5 million people
 urn:newsml:reuters.com:*:nL1N2R205K
    ** The blue-chip property sub-index  .HSNP  rose 1.98% and
the mainland index for the sector  .HSMPI  climbed 1.6%.
    ** The financial sector  .HSNF  gained 1.78% with Ping An
Insurance  2318.HK  leading the rise, surging 7%. 
    ** Brokers said investors were cautious ahead of the
reopening of the Chinese market on Friday.  
    ** Chinese Estates  0127.HK  jumped as much as 32.4% to a
4-month high after a major shareholder offered to take it
private for HK$1.91 billion ($245 million).  urn:newsml:reuters.com:*:nL1N2R302D
    ** Energy firms eased as oil prices dropped under pressure
from an unexpected rise in U.S. crude stocks that raised
concerns over demand after prices rallied to multi-year highs.
    ** CNOOC  0883.HK  dropped 3.49% and PetroChina  0857.HK 
fell 2.42%, sending the energy sub index  .HSCIE  down 1.46%
 O/R  


 (Reporting by Donny Kwok; editing by Emelia Sithole-Matarise)
 ((Donny.kwok@thomsonreuters.com))