Hong Kong Stocks Rise on Developers, Casino Shares ClimbKana Nishizawa
Hong Kong stocks rose, with the benchmark index gaining the most in almost a month, as Chinese developers rebounded from last week’s loss. The city’s retailers and Macau casino operators climbed on increased tourist arrivals during a three-day holiday.
China Resources Land Ltd., a state-owned developer, advanced 3.3 percent, after last week slumping 7.6 percent on concern more property curbs will be introduced. Chow Sang Sang Holdings International Ltd., a jewelry retailer, rose 3.6 percent after a report tourism during the Lunar New Year holiday jumped 33 percent from a year earlier. Wynn Macau Ltd., the Hong Kong-listed casino unit of Wynn Resorts Ltd., gained 2.2 percent as Chinese arrivals in Macau also rose.
The Hang Seng Index rose 0.9 percent to 23,413.25 at the close, its biggest increase since Jan. 18. About three stocks advanced for every two that fell, with trading volume about 9.7 percent below the 30-day average for the time of day, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland companies climbed 1.5 percent to 11,821.44. China’s markets will remain closed for the rest of the week.
“The Hang Seng and the H-share index are really catching up with the movement of the global markets over the past few days,” said Khiem Do, Hong Kong-based head of Asian multiasset strategy at Baring Asset Management Ltd., which manages about $51 billion. “Property is a long-term growth theme in China. As people in China become wealthy, they tend to upgrade properties.”
The Hang Seng Index surged 22 percent from the end of August through January, as China’s economic reports signaled a recovery and as central banks added stimulus to boost growth. The gauge traded at 11.3 times average estimated earnings on Feb. 8, compared with 13.7 for the Standard & Poor’s 500 Index and 12.4 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Mainland developers are being bought after they were oversold last week, and as investors anticipate an increase in property transaction volumes, said Patrick Yiu, associate director at Cash Asset Management Ltd. in Hong Kong.
A measure of property shares had the biggest gain among the Hang Seng Index’s four industry groups. China Resources Land gained 3.3 percent to HK$21.95, while China Overseas Land & Investment Ltd., the biggest mainland developer by value listed in Hong Kong, rose 2.5 percent to HK$22.60. Property stocks slumped last week following a report some mainland cities might slow home-sale approvals.
Home sales in Shenzhen in January rose 32 percent from the previous month, Xinhua news reported, citing the municipal urban planning, land and resources commission.
Futures on the Standard & Poor’s 500 Index dropped 0.1 percent today. The gauge gained 0.1 percent yesterday to the highest level since October 2007 as investors weighed economic reports and President Barack Obama’s State of the Union address.
Chow Sang Sang gained 3.6 percent to HK$21.55, while Chow Tai Fook Jewellery Group Ltd. rose 2.6 percent to HK$11.94.
More than 380,000 tourists arrived in Hong Kong during the Lunar New Year holiday, up from 286,000 over the same period a year earlier, the South China Morning Post reported, citing the city’s immigration department.
Wynn Macau rose 2.2 percent to HK$20.75. Galaxy Entertainment Group Ltd., a casino operator founded by billionaire Lui Che-Woo, gained 3 percent to HK$34.55. Mainland visits to Macau on Feb. 12 were 36 percent higher than a year earlier during the Lunar New Year holiday, and 30 percent greater on Feb. 11, according to data from the Macau government tourist office.
GCL-Poly Energy Holdings Ltd., a maker of polysilicon and solar wafers, jumped 10 percent to HK$2.18. Germany’s Wacker Chemie AG, the fourth-biggest maker of polysilicon, said on Feb. 11 it will increase production to meet demand from solar-power developers.
Futures on the Hang Seng Index climbed 0.8 percent to 23,428. The HSI Volatility Index slid 0.1 percent to 14.27, indicating traders expect a swing of 4.1 percent for the equity benchmark in the next 30 days.