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Hong Kong Stocks Advance as Glorious Property Surges

Hong Kong stocks rose, with the benchmark index heading for its highest in nearly 10 months, as coal producers and lenders advanced. Glorious Property Holdings (845) Ltd. soared by a record on a buyout offer.

The Hang Seng Index (HSI) climbed 0.6 percent to 23,736.34 as of 9:31 a.m. in Hong Kong, poised for its highest close since Jan. 31 and a 2.9 percent gain this week. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, added 1.1 percent to 11,453.83 as it headed for a 7.1 percent weekly gain.

The H-share index climbed 28 percent from this year’s low on June 25 through yesterday on signs of recovery in China and after policy makers unveiled the biggest reform package since the 1990s. The Hang Seng Index is up 19 percent from its June low, and traded at 11.3 times estimated earnings yesterday, compared with 16.2 for the Standard & Poor’s 500 Index.

Futures on the S&P 500 rose 0.1 percent. The gauge yesterday climbed 0.8 percent as jobless claims fell to the lowest since September. The Dow Jones Industrial Average topped 16,000 for the first time. The Federal Reserve has said it needs to see sustained improvement in the labor market before tapering stimulus.

Glorious Property Holdings surged 36 percent to HK$1.70 as it resumed trading today. The developer said Zhang Zhirong, the biggest shareholder, will buy all outstanding stock for as much as HK$4.57 billion ($589 million), and delist the company after the deal is completed. His offer represents a 45 percent premium to the last traded price of HK$1.24.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

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