Hong Kong Stocks Snap Three-Day Loss on China Industrial Profits
Hong Kong stocks gained, with the city’s benchmark index heading for its first advance in four days, after profits at China’s industrial companies rose.
Bank of Communications Co. added 0.9 percent. Dongyue Group climbed 4.7 percent after agreeing to buy Huaxia Shenzhou for 590 million yuan ($95 million) as it seeks to expand its chemicals business. China Cosco Holdings Co. dropped 4.9 percent after the nation’s biggest shipping company said it may face trading restrictions.
The Hang Seng Index (HSI) gained 0.4 percent to 23,669.61 as of 10:15 a.m. in Hong Kong, with more than three shares rising for each that fell. The gauge is heading for a fifth monthly advance, the longest streak of such gains since July 2009, amid optimism China’s economy will continue to recover.
“Improving economic data has been a major driver for the equity market rally,” said Castor Pang, head of research at Core-Pacific Yamaichi International Ltd. in Hong Kong. “We’re still seeing some upside momentum. Investors are probably waiting for company earnings to come out before committing fresh funds into the market.”
The Hang Seng China Enterprises Index of mainland companies added 0.7 percent to 12,085.74.
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