Hong Kong Stocks Rise as Automakers Gain; Zoomlion Slides
Hong Kong stocks rose as automakers advanced after Credit Suisse Group AG forecast growth in China’s passenger car market. Zoomlion Heavy Industry Science & Technology Co. (1157) slumped as trading resumed amid concern over its accounting.
Guangzhou Automobile Group Co., a Chinese partner of Toyota Motor Corp., jumped 4.5 percent after Credit Suisse raised its rating to neutral from underperform. Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, gained 2.4 percent after sales at Alcoa Inc. beat analysts’ estimates. Zoomlion, China’s second-biggest construction-equipment maker, sank 5.1 percent after a report said it received an anonymous letter questioning the company’s sales. Zoomlion said the allegations are false.
The Hang Seng Index climbed 0.4 percent to 23,209.98 as of 10:17 a.m. in Hong Kong, headed for its first gain in four days. Three stocks rose for each that fell on the 50-company measure today, with volume 7.6 percent below the 30-day average for the time of day, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland companies advanced 1 percent to 11,830.74.
Futures on the Hang Seng Index (HSI) rose 0.4 percent to 23,252. The HSI Volatility Index (VHSI) slid 3.5 percent to 13.99, indicating traders expect a swing of 4 percent for the equity benchmark in the next 30 days.
Hong Kong’s benchmark index surged 23 percent last year amid signs China’s economy is improving and as central banks around the globe added stimulus to boost growth. Shares on the measure traded at 11.2 times average estimated earnings yesterday, compared with 13.1 for the Standard & Poor’s 500 Index and 11.9 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
To contact the reporter on this story: Kana Nishizawa in Hong Kong at firstname.lastname@example.org
To contact the editor responsible for this story: John McCluskey at email@example.com