HSBC, Belle Lead Gains as Hang Seng Index Rises to One-Week High

  • HSI Volatility Index falls to lowest since April 2015
  • Trading volumes on HSI lower than gauge’s 30-day average

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Hong Kong stocks rose for a second day, sending the benchmark Hang Seng Index to a one-week high, as HSBC Holdings Plc and Belle International Holdings Ltd. led gains.

The Hang Seng Index advanced 0.6 percent to 22,800.92 at the close. U.K. lender HSBC was the biggest contributor to the gauge’s advance after the bank bought back shares and amid a global rally by lenders. Investors are expecting the European Central Bank to extend its stimulus program beyond the current March end date.

All but one of 11 sectors climbed on the Hang Seng Composite Index, which advanced 0.6 percent. The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong rose 0.6 percent, with Great Wall Motor Co. climbing 5.1 percent after its vehicle sales in November jumped 43 percent. The Shanghai Composite Index gained 0.7 percent. China’s November foreign currency reserves fell the most since January after the yuan declined to an eight-year low. Reports on trade figures are expected to be released Thursday.

  • VHSI down 4.2% to 14.47, lowest since April 2015
  • Financials rise 0.9%, leading gains on HSI
  • HSBC, Belle, China Shenhua Energy, China Merchants Port biggest movers in HSI, all up at least 2.1%
  • Investors are also awaiting Fed policy decision on Dec. 14; traders are pricing in a 100% chance it’ll raise rates, compared with 68% odds at the start of November
  • HSI is heading for a quarterly decline of 2.1%, with Hong Kong developers among the biggest losers after the government increased stamp duty on home purchases and Donald Trump’s win boosted expectations for higher borrowing costs
  • HSI trades on volume 30% less than its 30-day average at the time of day
  • Leshi Internet halts trading in Shenzhen pending major announcement while affiliate Coolpad tumbles 13% in Hong Kong; investors are likely concerned that LeEco’s cash flow problems may affect Coolpad, according to GF Securities; both Leshi and Coolpad are chaired by billionaire Jia Yueting, whose holding company LeEco holds about 29% of Coolpad through an affiliate
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