China H-Shares Climb to Two-Month High as Autos, Financials Rise

  • China’s exports rose, snapping seven-month losing streak
  • Mainland investors sell Hong Kong stocks through Shanghai

Chinese stocks traded in Hong Kong rose to a two-month high, riding a global rally on optimism Europe’s central bank will prolong its stimulus program.

The Hang Seng China Enterprises Index climbed 0.7 percent to 9,896.82, its highest close since Oct. 7. Dongfeng Motor Group Co. led gains on the measure after China’s car sales rose. Financial companies also gained, with China Galaxy Securities Co. and China Minsheng Banking Corp. adding at least 2.5 percent. Stocks in the U.S. soared to all-time highs on Wednesday amid expectations that the European Central Bank will maintain scheduled bond purchases beyond March.

All but one of 11 industry groups rose on the Hang Seng Composite Index, which climbed 0.4 percent. The Hang Seng Index added 0.3 percent, while the Shanghai Composite Index slid 0.2 percent. A government report showed China’s exports gained in November, snapping a seven-month losing streak in dollar terms, as a cheaper yuan aided foreign purchasing. Imports jumped the most in two years.

  • Yanzhou Coal climbed 7.9% in Hong Kong after Credit Suisse raised its rating to outperform from neutral
  • China Vanke, an acquisition target of two insurers, advanced 2.8%. The shares tumbled 9.4% over the first three days of this week amid a regulatory crackdown on the leveraged acquisition of listed companies by insurance firms
  • Wuhan Iron & Steel jumped 4.1% and Baoshan Iron & Steel climbed 3.1% as they resumed trading in Shanghai after the China Securities Regulatory Commission approved their merger
  • Xinjiang Goldwind surged 4.5% in Hong Kong after saying it will cooperate on wind power projects with Apple
  • Dongfeng Motor rose 3%, Great Wall Motor was up 2.4%; China’s passenger-vehicle sales increased 20% on year in November
  • China Railway Construction dropped 4.7%, the most on the HSCEI, after saying it plans to issue convertible bonds
  • Mainland investors sold a net 1.75 billion yuan of Hong Kong shares through the Shanghai link, the most since July 2015
  • China’s exports rose 0.1% from a year earlier in November in dollar terms, while imports jumped 6.7%
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