Hong Kong stock index atop 26,000 as China banks extend rally
HONG KONG (Nikkei Markets) – Hong Kong shares are targeting a third day of gains, the benchmark index has risen above 26,000, while Chinese banks have extended their route since the day before and energy producers Followed the price of oil.
The Hang Seng index added 0.8% to 26 089.42 at noon after battling several times to rise above the 26,000 level in the last month, when the indicator is limited to a range of 750 points.
The Commercial Bank of China Industrial (ICBC), the country’s largest bank, led the charge when it jumped 3.4 percent in what could be its best single-day advance since April 2016. Among its top China Construction pairs Bank (CBB), state-owned, Bank of China (BOC) and China’s Agricultural Bank (ABC) all earned at least 2.6%.
Profits came amid some concerns about disability lending lenders. UOB Kay Hian maintained Wednesday that her CCB purchase rating, saying “the worst has happened in terms of asset quality.” A day earlier, Morgan Stanley raised its target prices for listed Hong Kong stocks by an average of 5%, citing a prospect of improving its net profit margins.
Meanwhile, the People’s Bank of China will add 70 billion yuan (10.3 billion) to the money markets in the nation – which constitutes a net injection of 20 billion yuan after considering equity securities – Wednesday , According to Reuters, citing traders. The measure follows the infusion Monday 40 billion yuan, which came after a 12-day break.
“The Hang Seng index can consolidate and end a good opportunity to make further progress now,” said Linus Yip, chief strategist at Shanghai Stock Exchange. “China’s Gambling Insurance and China Banking Games are the main drivers.” For banks, this is double .The People’s Bank of China started operations start yesterday, and macroeconomics in China remains stable. Means a good income interest “.
China Petroleum & Chemical (Sinopec) rose 0.9% at energy-producing pace as US crude prices were higher for the third consecutive day.
Heavy paper Tencent Holdings rose 1.5%. The Nasdaq Composite made its third direct advance all day despite new concerns over the administration of President Donald Trump after his eldest son posted e-mails showing Russian support for Trump during his presidential election campaign.
On the mainland, Shanghai Composite fell 0.2% after rising earlier in the day. The yuan traded on the floor increased 0.2% against the dollar at 6.7788.
Shares of Ping An Insurance Group linked to Hong Kong rose 1.1%. The insurer looks for assets and health care in the United States, Israel and Singapore, Reuters reported, citing Jonathan Larsen, director of insurance company computing.
Legend Holdings, the largest shareholder in personal computer maker Lenovo Group, is in talks for a possible investment in Banque Internationale à Luxembourg (BIL) belonging to Qatar, Reuters quoted a person with knowledge of the matter. Legend Holdings remained unchanged at HK $ 20.60, while Lenovo gained 1%.