Properties pushed the HK benchmark index up and utilities slipped 11 July 2014

Shares in the Hong Kong markets showed mixed results where property sector surged by more than 1 percent. 

Hong Kong stocks swung between gains and losses as property companies led the city’s benchmark index higher and utilities slid.

Shares of Henderson Land Development Co. jumped 1.8 percent. HyComm Wireless Ltd. doubled after China Qingdao International Holding Co. proposed to purchase its text-messaging service. 

After a report from the government did not  encourage private investment in the power-distribution sector,China Resources Power Holdings Co. slipped 1.3 percent.

The Hang Seng Index climbed 0.2 percent to 23,274.38 as of 10:49 a.m. in Hong Kong after detailing as much as 0.4 percent. 

The biggest drop since the period ended May 9 might be the next highlight as the gauge is citing 1.2 percent decline this week. H-share index,also known as Hang Seng China Enterprises Index, gained 0.2 percent to 10,384.62. Global shares slid overnight amid concern about financial risks in Europe. The gauge is trading at 10.8 times estimated earnings at the last close. 

“Even though most markets are dealing carefully keeping a check on the European situation. Optimism in investors is rising for the ever-growing HK market,” vice-president of a reputed security analytical firm in Hong Kong, said. “If the inflow of money into Hong Kong follows the same trend, the Hang Seng Index (HSI) will be  crossing 24,000 level. Hong Kong stocks are extremely cheap, having delayed the fall which hit other developed markets.”

The Hang Seng Properties Index gained 0.5 percent today, two days in a row today. Properties are recovering their steepest fall recorded on July in two months. 

A popular security management group quoted, "Mass-residential property prices in Hong Kong are most likely to surge 3 percent in 2014," changing from the previous prediction of a 5 percent drop.  

The Hang Seng Index dropped 0.3 percent this year through yesterday, paring losses amid signs the economy is stabilizing as China rolls out targeted stimulus measures including reserve-ratio cuts. 

In an action to maintain the city’s 31-year-old currency peg, HK's de facto central bank bought $1.33 billion this week. China Resources Land Ltd. climbed 1.6 percent, easing profits among mainland homebuilders amid signs of loosening property curbs.

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HK market's fall is a correction overwhelming growth 9 JULY 2014

China's consumer price inflation declined unexpectedly in June, indicating weakness in the economy, which could prompt Beijing to further stimulate actions to shore up growth.

Hang Seng Index reported loss of 1.2 percent to 23,248.43 at mid-day, after closing at 0.1 percent low movements in the last four sessions.

The China Enterprises Index representing top Chinese listings in Hong Kong slipped 1.1 percent.

The CSI300 of the leading Shanghai and Shenzhen A-share listings fell 0.5 percent. Shanghai Composite Index followed the downgrading trend declining 0.4 percent at 2,056.89. Both closed at their highest since mid-June on Tuesday.

HK market analyst said, "Reporting spread out some strong sentiments in the markets. A lot of selling recorded in the market till now."

Wednesday's fall out is, "just a correction to an overstretched rally," an economist quoted. Shares in HK markets surged to seven month's high following the impulsive sentiments of the market.

Tencent reported its worst daily drop since May 29 at 2.9 percent. Major influencing factor for it's dragging is weak US economy last night. Nasdaq's over night falling pulled down most HK stocks. HSBC Holdings PLC, the second-biggest slidder on the index after Tencent, dropped 1.1 percent.

Chinese banks made the top under-performers list. Bank of China slugged 2.0 percent in Hong Kong and 0.8 percent in Shanghai. Smaller lender China Minsheng Bank slumped 1.0 percent in Hong Kong and 0.8 percent in Shanghai.

On Tuesday, Singapore sovereign investor Temasek Holdings Pvt Ltd holds 6 percent stake in China Construction Bank (CCB) and a 2 percent stake in Industrial and Commercial Bank of China. The company said, "we would keep investing in Chinese banks unconcerned about the temporary slowdown in portfolio growth due to a drop in the value of some of its bank holdings."

CCB's H-shares drowned 0.9 percent to a 1-1/2-month low. Daiwa Capital Markets dropped the rating of CCB by two notches from "buy" to "hold" on Monday, looking at the property market's steep falls.

Luye Pharma Group broke records as it stood alone gaining the slumping markets. Shares of recently listed Luye climbed 11.3 percent on its Hong Kong debut.

The growth is encouraging prospects for other so-called "China orphan" firms. China orphan is the term referred to companies which were delisted by private equity firms from overseas bourses to relist closer to home, where demand for Chinese firms is seen as more vibrant. In Luye's case, the move from Singapore Stock Exchange to HK.

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Shares in HK markets are falling fast as pressure inflated | Hong Kong stock Market News 7 July 2014

Hong Kong shares dropped today with Macau casinos under selling pressure after last week's strong rebound, while China markets lowered as investors await major economic data later this week.

At midday, the Hang Seng Index slipped 0.2 percent at 23,494.96 points. The China Enterprises Index of the top Chinese listings in Hong Kong fell 0.1 percent.

The CSI300 of the leading Shanghai and Shenzhen A-share listings and the Shanghai Composite Index were both off 0.3 percent. The Shanghai benchmark stood at 2,052.42 points after choppy morning trade.

Shanghai-based research analyst said.

But Zhang warned about risks from speculating on small caps"The active stocks are mainly those new listings and small caps".

Property developers expanded gains, with the CSI China Mainland Real Estate index up 1.2 percent to its highest since April 25.

China Vanke surged 3.1 percent in Shenzhen and 2.7 percent in Hong Kong, following gainings of 3.9 and 8.2 percent in the two markets on Friday after the largest residential property developer said first-half contract sales were up 20.6 percent from a year ago.

"There's the rising tide but also the falling tide. In the long run, if these companies cannot sustain profit growth, you may face relatively big risks if you drive up these stocks," Analysts said.

Poly Real Estate Group advanced 2.2 percent, after the National Business Daily reported on Monday one luxury projects has been approved in Beijing at the price of about 100,000 yuan ($16,100) per square meter, a sign that the capital city has loosened its restrictions on housing prices.

Chongqing Iron & Steel, which climbed 6.3 percent on Friday after a partnership with Korean steelmaker Posco was announced, dropped 4.7 percent after the Chinese company said that tie-up would have no material impact on its results, as the benefit would go to its parent.

A leading loser on the Hang Seng was Sands China, which fell 2.7 percent. Galaxy Entertainment Group, which climbed 11 percent last week, sank 1.8.

Great Wall Motor slipped 4.0 percent in Hong Kong and 0.9 percent in Shanghai after June sales declined.

Beijing is due to post June inflation data on Wednesday, trading data on Thursday, with loan growth and money supply data to be declared between July 10 and 15.

Second quarter GDP growth is scheduled on July 16, as are monthly urban investment, industrial output and retail sales figures.  

外汇交易服务 | HK markets weekly report including HKMA in FOREX, H-share rise and China 4 JULY 2014

First week of July reported Hong Kong's first foreign exchange involvement in almost two years to curb currency strength and analysts expect more of the same in the weeks ahead.

The reason behind this intervention as per analyst is, "renewed optimism towards China's equity market and strong flows into Hong Kong's bond and stock markets should keep upward pressure on the Hong Kong dollar".

The Hong Kong Monetary Authority (HKMA), the city's regulator central bank, said on Wednesday it bought $2.1 billion over two days to contain gains in the local currency.

Official data this week showed China’s factory activity ran at the fastest pace this year in June. A services purchasing managers’ index was the highest since March 2013.

The H-share gauge closed this year’s fall at 3.4 percent. Government shortlisted targeted pointers including reserve ratio cuts to fight the slowdown. The measure traded at 7.3 times estimated earnings at the last close, referred to Hang Seng Index at 10.9 and 16.7 for the Standard & Poor’s 500 Index.

Hong Kong’s May retail sales by volume fell 4.7 percent from a year earlier, exceeding economists’ median estimate for a 3.8 percent dropped, while sales by value slipped 4.1 percent, the city’s government said on its website yesterday.

Hong Kong is often said to be a probing entity for China. Therefore, investors who are looking for exposure for trading in Chinese markets often buy assets in Hong Kong first.

The Hang Seng stock index is up 3 percent over the past five days with unpredicted performance. HSI surged 2.6 percent in MSCI's broadest index of Asia-Pacific shares outside of Japan.  

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HK Stock gained breaking the highest record since December 2 July 2014

Hong Kong stocks surged, as the benchmark index headed for its highest since December. China’s factory activity expansion at the fastest pace this year is the primary reason behind this steep rise. 

Galaxy Entertainment Group Ltd., the gaming company controlled by billionaire Lui Che-woo, rose 2.6 percent as Bank of America Corp.’s Merrill Lynch unit said "Macau casino revenue will revive this month." Anhui Conch Cement Co., China’s biggest producer of the building material, jumped 2.1 percent. Li & Fung Ltd., the world’s biggest supplier of clothes and toys to retailers, climbed 1.6 percent in the positivity run for its Global Brands Group spinoff. 

The Hang Seng Index (HSI) rose 1.1 percent to 23,348.13 as of 10:25 a.m. in Hong Kong,  for its highest close since Dec. 10. The Hang Seng China Enterprises Index, also known as the H-share index, rose 0.5 percent to 10,386.06. Markets in the city were shut for a holiday yesterday. 

“Investors remain quite positive, helped by encouraging Chinese manufacturing data,” said Market research expert. “If the Hang Seng Index fails to break through the 23,500 resistance level in the near term, pressure for a correction may increase.” 

China’s official gauge of factory activity released yesterday closing at 51 in June, matching analysts’ median estimate and rising from 50.8 the month before. A survey of the sector showed growth from to 50.7 from 49.4 in May. Readings above 50 signal growth. 

The H-share index fell 4.5 percent in the first half as investors weighed whether China’s stimulus was enough to prop up growth. The measure traded at 7.2 times estimated earnings at the last close, compared with 10.8 for the Hang Seng Index and a multiple of 16.7. 

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China announces Shanghai-HK mutual stock market access

一項試驗計劃，連接上海和香港股市已通過中國的證券監管機構。

內地與香港之間的相互股市的訪問將允許內地和香港投資者到其它的市場上很容易地進行交易，根據上週四的聯合聲明由中國證券監督管理委員會（中國證監會）及香港證券及期貨事務監察委員會。

這將需要大約六個月的正式推出該計劃的準備，聲明說。

該方案將使投資者交易通過當地的證券公司或經紀人的其他市場上市資格股，該聲明說。

該試點將在上海證券交易所，香港聯合交易所（香港）有限公司，中國證券登記結算有限責任公司和香港中央結算有限公司的運作，它說。

Sources - http://news.xinhuanet.com/

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