Hong Kong stocks swung between gains and losses as Aluminum Corp. of China rose on an asset-sale plan and China Resources Power Holdings Co. tumbled after saying it will issue shares for a merger. The city’s benchmark index is headed for a three-week gain.
Aluminum Corp., also known as Chalco, surged 4.6 percent on a plan to sell 8.18 billion yuan ($1.3 billion) of assets including production plants. China Resources Power sank 8.5 percent after saying it will issue almost one new share for each held in a merger deal with China Resources Gas Group Ltd. Skyworth Digital Holdings Ltd. (751) climbed 3 percent after the television maker said TV sales rose in April. Guangzhou Automobile Group Co., a Toyota Motor Corp. parter, rose 1 percent after sales climbed last month.
The Hang Seng Index advanced 0.1 percent to 23,228.79 as of 10:11 a.m. in Hong Kong after falling as much as 0.2 percent, with about an equal number of stocks climbing as declining on the 50-member gauge. Trading volume on the index was 8.9 percent less than the 30-day intraday average, according to data compiled by Bloomberg. The benchmark is headed for a 2.4 percent gain for the week. The Hang Seng China Enterprises Index (HSCEI) of mainland companies rose 0.5 percent to 11,324.17.
Futures on the Hang Seng Index (HSI) were little changed at 23,128. The HSI Volatility Index dropped 0.7 percent to 14.56, indicating traders expect a swing of 4.2 percent for the equity benchmark in the next 30 days.
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