Hong Kong Stocks Reverse Losses as Chinese Banks Extend Gains
Bank of China Ltd. (3988) and Ping An Insurance Group Co. led the advance among Chinese financial companies on speculation the industry will benefit from government moves to ease lending curbs and stimulate the economy. Yue Yuen Industrial Holdings Ltd. (551), a Nike Inc. shoe supplier that gets about 30 percent of sales from the U.S., fell 1.3 percent after an unexpected rise in the number of Americans filing for jobless benefits.
“A lot of the potential downside has been priced in,” said Andrew Sullivan, principal sales trader at Piper Jaffray Asia Securities Ltd. in Hong Kong. “Its hard to tell whether valuations have reached the trough until we know what’s going on in Europe.”
The Hang Seng Index gained 0.2 percent to 19,040.39 as of the 4 p.m. close in Hong Kong, erasing losses of as much as 0.7 percent. The measure advanced 7.6 percent this week as China lowered reserve requirements and the Federal Reserve led five other central banks in cutting the cost of emergency funding for European lenders. The gauge plunged 9.4 percent in November.
The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong advanced 0.7 percent to 10,350.51 after surging yesterday by the most since December 2008.
To contact the reporter on this story: Jonathan Burgos in Singapore at firstname.lastname@example.org;