Chinese Developers Jump in Hong Kong as Concerns of Policy Tightening Ease
Mainland Chinese stocks related to property and construction materials surged in Hong Kong on signs that the country will ease efforts to cool its economy as Europe’s debt crisis threatens global growth.
China Overseas Land & Investment Ltd., the biggest Hong Kong-traded Chinese developer by market value, rose 6.1 percent to HK$15.62 at the 4 p.m. close of trade. China Resources Land Ltd., a state-controlled developer, gained 7.3 percent to HK$14.98. They had the biggest gains in the benchmark Hang Seng Index. Anhui Conch Cement Ltd. climbed 4.7 percent to HK$23.50.
China should be cautious in introducing new tightening measures because the global economic environment is complex, Xu Lianzhong, an official with the National Development and Reform Commission’s price-monitoring center, wrote in a commentary today in the China Securities Journal.
The country has raised banks’ reserve ratios on three occasions so far this year, and introduced measures to limit excess speculation in property development amid concern that asset bubbles were forming in China’s major cities.
Also today, Vice Premier Wang Qishan said boosting global economic growth is an “urgent and arduous” task and China is committed to expanding domestic demand. Wang was speaking in Beijing at the U.S.-China Strategic and Economic Dialogue.
Greentown China Holdings Ltd., the country’s third-biggest seller of properties during the first quarter of 2010, jumped 8.9 percent to HK$8.61. Evergrande Real Estate Group Ltd., which has been selling properties at a 15 percent discount nationwide, gained 5.3 percent to HK$2.
China Resources Cement Holdings Ltd. climbed 3.5 percent to HK$3.24. China National Building Material Ltd., the nation’s second-biggest cement maker, jumped 6 percent to HK$12.08. China National Materials Co., which makes almost 90 percent of revenue from cement businesses, surged 10 percent to HK$4.42.