Hong Kong's benchmark index moved up 2.26 percent Friday, led by gains in property stocks after the interest rate hike announced by China's central bank Thursday which removed mainland policy uncertainty in the short term.
The blue-chip Hang Seng Index rose 609.83 points, or 2.26 percent, to 27,626.92 after trading between 27,192.80 and 27,670. 31 during the session. Turnover totaled 83.37 billion HK dollars ( 10.70 billion U.S. dollars), up from 77.62 billion HK dollars (99. 60 billion U.S. dollars) Thursday.
The People's Bank of China said late Thursday it was raising its benchmark interest rates for the sixth time this year to continue to battle inflation and prevent the economy from overheating.
In Hong Kong, property stocks rose most, with the property sub-index ending 4.19 percent higher at 36,904.30, followed by the Utilities at 2.53 percent, the Commerce and Industry at 2.27 percent, and the Finance at 1.71 percent.
Sino Land jumped 6.2 percent to 27.40 HK dollars and Sun Hung Kai Properties gained 4.2 percent to 160.20 HK dollars. Li Ka- shing's property flagship, Cheung Kong, advanced 4.5 percent to 140.60 HK dollars and Henderson Land ended 2.5 percent higher at 70.55 HK dollars.
Mainland property stocks also rebounded widely, although the PBC indicated correction in real estate would be inevitable in 2008. China Overseas, China Res Land, Agile Property and R&F Properties mounted 1.07 percent to 5.98 percent. KWG Property lifted 4.26 percent on upbeat comment by Goldman Sachs, while Sino- ocean Land, Franshion PPT and SOHO China gained 5.7 percent to 6. 61 percent.
CLP, the larger of Hong Kong's two power suppliers, rose 1.5 percent to 54.50 HK dollars after it said it will raise its tariffs 4.5 percent next year because of high fuel costs. It will be its first tariff hike in 10 years. Hongkong Electric, the city's other power provider, may also announce a tariff increase later Friday. It rose 2.8 percent to 44.35 HK dollars.
On Chinese telecom stocks front, China Mobile was up 2.23 percent, Netcom up 4.75 percent, China Unicom down 0.86 percent, and China Telecom down 0.17 percent.
The three insurers moved higher across the board after the PBC raised rates. PICC P&C, Ping An and China Life put on 1.86 percent to 2.92 percent.
The six banks were little changed. CITIC Bank said the impact of the tightening policies on the bank outstripped expectations, down 0.79 percent; ICBC, Bank of China, CCB, Bankcomm and CM Bank inched up 0.26 percent to 2.51 percent.
Source:Xinhua
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