Hong Kong, China stocks end higher

FE Team | Published: April 09, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

HONG KONG, Apr 8 (AFP): Shares in Hong Kong and China rallied on Tuesday on hopes Beijing will unveil new measures to boost the mainland economy after last week's mini-stimulus.
In Hong Kong, the benchmark Hang Seng Index rose 0.98 per cent, or 219.82 points, to 22,596.97 on turnover of HK$73.87 billion (US$9.53 billion).
The gains follow two successive sessions of losses and come despite a heavy sell-off on Wall Street that saw tech firms, which helped fuel last year's rally, tumble.
Beijing last week unveiled a series of measures aimed at kickstarting the Chinese economy after a weak run of indicators including on trade, investment and industrial output.
The plan includes extra spending on railways, improving low-income housing and tax relief for small businesses, which have been struggling along with the economy.
Mainland stocks listed in Hong Kong -- which dropped 6.9 per cent in the first quarter -- continued to claw back losses.
Internet giant Tencent rose 1.6 per cent to HK$509.5, China Mobile added 1.39 per cent to HK$72.8 and Bank of China was up 1.75 per cent at HK$3.48.
HSBC rose 0.25 per cent to HK$78.70, Cathay Pacific Airways surged 4.40 per cent to HK$14.72 and Ping An Insurance of China gained 1.53 per cent to HK$66.30.
In China the benchmark Shanghai Composite Index, which was closed Monday for a public holiday, jumped 1.92 per cent, or 39.45 points, to 2,098.28 on turnover of 108.0 billion yuan ($17.4 billion).
The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.95 per cent, or 10.13 points, to 1,078.20 on turnover of 94.4 billion yuan.
"The strong performance of banks, helped by cheap valuations and expectations for good first-quarter earnings, pushed up the (Shanghai) index," Haitong Securities analyst Zhang Qi told the reporter.
Hopes that banks will soon issue preferred shares, constituting an additional funding channel, boosted sentiment, he said.
China's stock regulator on last Friday issued guidelines regarding information disclosure for preferred stock issues to prepare for the trial scheme announced last month.
Industrial Bank surged 8.04 per cent to 10.35 yuan while China Minsheng Banking gained 4.76 per cent to 8.14 yuan.
Defence stocks were higher on hopes for more government spending in the sector.
China Avic Electronics jumped 6.48 per cent to 20.21 yuan and Jiangxi Hongdu Aviation Industry rose 3.21 per cent to 16.42 yuan.