Hong Kong’s Hang Seng Index Gains as Local Developers Advance

Hong Kong stocks rose as property developers climbed for a sixth day, sending the Hang Seng Index toward its highest closing level in three weeks.

Sino Land Co. (83) gained 2.7 percent and New World Development Co., a builder with stakes in 16 hotels in Hong Kong, advanced 3 percent. Cosco Pacific Ltd. (119) rose 0.5 percent after the shipping services company announced the sale of a unit. Hengan International Group Ltd., which makes and sells personal hygiene products, led declining shares, falling 1.6 percent.

The Hang Seng gained 0.5 percent to 23,202.29 as of 10:41 a.m. in Hong Kong, with more than three shares rising for each one that fell. The Hang Seng China Enterprises Index, which tracks stocks of Hong Kong-listed Chinese companies, added 0.7 percent to 11,516.26.

The Hang Seng yesterday traded at 11.3 times average estimated earnings, compared with 14.1 for the Standard & Poor’s 500 Index and 12.7 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg. Hang Seng Index (HSI) futures advanced 0.6 percent to 23,195. The HSI Volatility Index slid 0.5 percent to 14.60, indicating traders expect a swing of 4.2 percent for the equity benchmark in the next 30 days.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net

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