First Shanghai (227) Investments Ltd. soared 6.8 percent amid continued optimism for a stock-connect program between Hong Kong and Shanghai. China Shipping Development Co. (1138) rose 3 percent. Tencent Holdings Ltd. (700), Asia’s largest Internet company, provided the biggest boost to the Hang Seng Index (HSI) before posting results tomorrow. Henderson Land Development Co. dropped 1.2 percent as city property companies pared yesterday’s gains.
The Hang Seng Index rose 0.2 percent to 24,689.41 at the close in Hong Kong after falling as much as 0.4 percent. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, today rose 0.2 percent to 11,064.35. Mainland data on new credit and money supply are expected as early as today, and reports on retail sales and industrial output are due tomorrow.
“Investors are still keeping their eyes on upcoming Chinese data and company results,” said Ben Kwong, a director at KGI Asia Ltd. “Overall risk appetite remains quite good. ”
The H-share gauge slid as much as 2.7 percent since the end of July as investors took profits after the measure surged more than 20 percent from its March low. The equity index traded at 7.7 times estimated earnings, compared with 11.4 for the Hang Seng Index and 16.2 for the Standard & Poor’s 500 Index (SPX) yesterday.
New yuan loans probably reached 780 billion yuan ($126.7 billion) last month, compared with 1.08 trillion yuan in July, according to the median estimate of 46 economists surveyed by Bloomberg.
Brokers today asked Shanghai Stock Exchange officials about rules governing Hong Kong investors buying and selling mainland shares ahead of the start of cross-border trading. A CLSA Ltd. survey of 401 Chinese investors showed 77 percent weren’t interested in trading Hong Kong stocks through the Shanghai bourse.
Securities companies have been advancing amid speculation the cross-border trading program will boost volumes and increase their profitability. First Shanghai, whose shares have more than doubled since the plan was announced in April, advanced 6.8 percent to HK$1.88 today. Shenyin Wanguo HK Ltd. increased 2.2 percent to HK$5.56.
Shipping lines advanced. China Shipping Development climbed 3 percent to HK$5.47. China Cosco Holdings Co., the nation’s biggest cargo line, rose 1.5 percent to HK$3.44. Pacific Basin Shipping Ltd. jumped 7.6 percent to HK$4.69.
Hong Kong developers climbed yesterday after the city’s existing home prices reached a record. Henderson Land, a builder controlled by billionaire Lee Shau-kee, dropped 1.2 percent to HK$49 after yesterday surging the most in more than a month. Sino Land Co., controlled by billionaire Robert Ng, slid 0.9 percent to HK$13.56 and Hang Lung Properties Ltd. dropped 0.8 percent to HK$23.50.
Futures on the S&P 500 added 0.2 percent today. The U.S. benchmark index climbed 0.3 percent yesterday on optimism that tension between Russia and Ukraine will ease and U.S. airstrikes will push back militants in Iraq.
Ukrainian President Petro Poroshenko said yesterday there would be an international humanitarian mission to the city of Luhansk under the auspices of the Red Cross, involving the U.S., the European Union and Russia. Earlier, Russian Foreign Minister Sergei Lavrov said agreement had been reached with Ukraine on providing aid.
In the Middle East, President Barack Obama gave full U.S. support for Iraq’s president to form a new government hours after embattled Prime Minister Nouri al-Maliki rejected stepping aside for a successor.
Tencent advanced 0.8 percent to HK$133.30. Its second-quarter profit will jump 53 percent from a year earlier, according to analyst estimates compiled by Bloomberg.
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