China Railway Group Ltd. (390) led gains among Chinese builders after Goldman Sachs Group Inc. raised its rating on the sector.
The nation’s biggest construction company by assets advanced 7.7 percent to HK$7.60 at the 12:30 p.m. break in Hong Kong trading, set for its highest close since May 2008.
Goldman Sachs added China Railway, which signed a $7.5 billion contract with Venezuela’s national rail department on July 31, to its “conviction buy” list, the brokerage said in a note today. The company’s share-price estimate was raised 97 percent to HK$10.35 on strong earnings prospects and investments in mining and real estate.
China Railway Construction Corp. (1186), the builder of more than half the nation’s railroads and China Communications Construction Co. (1800), a port builder, also had their share-price estimates lifted by Goldman.
China Railway Construction gained 1.5 percent to HK$13.46, the highest since May 2008. Goldman’s new estimate is HK$16.74. The company said it won a 1.94 billion riyal ($517 million) contract to build schools in Saudi Arabia and another 2.17 billion yuan contract to build railways in the southwestern city of Chengdu.
China Communications Construction gained 2 percent to HK$10.38. The brokerage raised its rating to “neutral” from “sell” and its price estimate by 98 percent to HK$ 11.61.
Editors: Nick Gentle, Sam Waite.
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