Chinese property stocks surge after December sales
HONG KONGJan 03, 2015 - 12:00 am GMT+3
Jan 03, 2015 12:00 am
Hong Kong and Chinese enterprise shares ended higher on the first trading day of the new year on Friday and posted their best week in the last five weeks, with Chinese property and financials stocks leading the way. The Hang Seng index ended up 1.1 percent at 23,857.82 while the China Enterprises Index gained 2.2 percent to 12,245.35. The blue-chip index is up 2.2 percent for the week, while the China Enterprises Index climbed 5.95 percent, fuelled by the strong sentiment in mainland markets, which have surged on expectations that Beijing will roll out more stimulus measures to support the slowing economy.
Shares of Chinese property developers in Hong Kong surged as reports of strong December sales eased worries about the cooling housing market. China Resources Land Ltd climbed 7.1 percent, China Overseas Land and Investments Ltd 8.5 percent and China Vanke 10.6 percent. Financial stocks also rose with Ping An Insurance jumping 5.1 percent, China Life Insurance rose 3.1 percent, and Industrial and Commercial Bank of China Ltd up 1.9 percent.
China markets were closed for a holiday on Friday and will reopen on Monday. Casino shares fell after the release of Macau's gambling revenue for December, with Wynn Macau down 3.7 percent, Melco Crown sliding 2.7 percent and Galaxy Entertainment losing 1.8 percent. Macau reported during the lunch break that its gaming revenue fell 30.4 percent year-on-year in December and was down 2.6 percent in 2014. Shares in China's biggest trainmakers China CNR and CSR Corp in Hong Kong continued to rise after the two firms confirmed that they will merge. CNR surged 16 percent and CSR leap 18 percent.
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Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University