Hong Kong Stocks Rise; China Mobile, HSBC, Cheung Kong Lead
By Yeong Choy Leng
Hong Kong, June 21 (Bloomberg) -- Hong Kong stocks rose, led by HSBC Holdings Plc and developers, as comments by Federal Reserve Chairman Alan Greenspan suggested the U.S. central bank has leeway to lower interest rates further next week.
Stocks also gained after the U.S. index of leading economic indicators suggested the economy may pick up later this year.
``This is positive news and people will focus on the possible interest rate cut over the next few days,'' said Herbert Lau, research director of Celestial Securities Asia Ltd. He is expecting a quarter-point rate cut.
China Mobile (Hong Kong) Ltd. and other telecommunications stocks added to gains after the Nasdaq Composite Index rose 1.9 percent. They were also lifted by gains in the Hang Seng Index futures, traders said.
The Hang Seng Index rose 268.74, or 2.1 percent, to 13,187.45. The June futures contract of the Index rose 3 percent to 13,269, a 0.6 percent premium to the cash market. In the broader market, almost three stocks rose for every one that fell. Trade at HK$10.5 billion ($1.4 billion) was almost a tenth more than the average for the past three months.
The following is a list of companies whose shares were active.
Banks and property stocks rose on hopes U.S. and local interest rates will help spur home purchases and demand for loans. Greenspan told the Senate Banking Committee that higher labor and energy costs have not led to higher inflation. The Fed meets next Tuesday and Wednesday to decide whether to cut the overnight lending rate from its current 4 percent. The Conference Board's index, a gauge of the economy's expected performance in the next three to six months, rose more in May than in any other month in the last 1 1/2 years, reflecting higher stock prices and improved consumer confidence.
HSBC Holdings Plc (5 HK ), the U.K.-based parent of the city's two largest lenders, rose HK$1.50, or 1.6 percent, to HK$93.75. Cheung Kong (Holdings) Ltd. (1 HK ), Hong Kong's biggest real estate developer, rose HK$2.50, or 3 percent, to HK$87.25.
Telecommunications stocks rose along with their U.S. peers. China Mobile (Hong Kong) Ltd. (941 HK ), a unit of China's largest mobile telephone company, rose HK$1.70, or 4.3 percent, to HK$41. Hutchison Whampoa Ltd. (13 HK ), which has global telecommunications businesses, rose 75 cents, or 0.9 percent, to HK$81.25.
China Petroleum & Chemical Corp. (386 HK ), the country's top oil refiner or Sinopec, rose 4 cents, or 2.8 percent, to HK$1.49. The company said plans to sell yuan- denominated shares in July won't be delayed by a new law that state-controlled companies cut the government's stake when they sell new shares. Separately, only China Petrochemical Group and China National Petroleum Corp., or CNPC, will be allowed to build new gasoline stations, China Oil News reported, citing a circular from State Economic Trade Commission.
China Unicom Ltd. (762 HK ), a unit of China's second-largest telephone company, rose 40 cents, or 3.2 percent, to HK$13. The company hired China International Capital Corp. and Morgan Stanley Dean Witter & Co. to help it raise funds for the purchase of 18 wireless networks from its parent.
China companies rose as investors bet the mainland's domestic consumption will help offset a slowing U.S. economy. China exports to the U.S. rose 1 percent from a year earlier to $4.3 billion, based on customs figures for the January-to-May period reported by Xinhua news agency. During the five-month period, exports climbed 7.6 percent to $20.3 billion. Even so, China had a $5.7 billion trade surplus with the U.S. during the month. Huaneng Power International Inc. (902 HK ), China's largest independent power producer, rose 20 cents, or 4.4 percent, to HK$4.725. Beijing Capital International Airport Co. (694 HK ), which manages the city's airport, rose 7.5 cents, or 3.2 percent, to HK$2.40. The Hang Seng China Enterprises Index, which tracks state-owned companies or `H- shares,' gained 4.1 percent while the Hang Seng China-Affiliated Corporations (Red Chip) Index, which tracks China-backed Hong Kong companies, rose 3.5 percent.
Chinese brokerages rose after the China Securities Regulatory Commission said the mainland's stockbroking companies may be allowed to go public under draft rules released by the stock market regulator. China Everbright Ltd. (165 HK ), which is planning to sell its banking and brokerage businesses to the public, rose 35 cents, or 4.8 percent, to HK$7.60. Shenyin Wanguo (H.K.) Ltd. (218 HK ), a subsidiary of China's second-largest brokerage in terms of securities traded, rose 5 cents, or 4.8 percent, to HK$1.09.
CLP Holdings Ltd. (2 HK ), which supplies electricity to three-quarters of Hong Kong's 6.7 million people, rose 90 cents, or 2.9 percent, to HK$32.50. Its unit, CLP Telecommunications Ltd., said it won a license from the government to provide a fiber-optic Internet link to China.
EganaGoldpfeil (Holdings) Ltd. (48 HK ), a Hong Kong luxury goods maker that last year acquired German watchmaker Junghans Uhren GmbH, rose 0.5 cent, or 2.6 percent, to 19.7 HK cents. The company is close to buying clothing company Wuensche AG, Wirtschaftswoche said, citing people familiar with the plan. Separately, the company plans to sell shares in its leather goods unit Goldpfeil in Germany, Sing Tao Daily News reported, quoting David Wong, a company director.
Guangnan (Holdings) Ltd. (1203 HK ), a China-backed food importer and distributor, fell 7 cents, or 18 percent, to 32.5 HK cents after being suspended yesterday. The company said it shut down all 39 supermarkets in Hong Kong, firing 500 staff.
Hikari Tsushin International Ltd. (603 HK ), the Asian investment vehicle for Japan's Hikari Tsushin Inc., rose 0.7 cents, or 4.8 percent, to 15.2 HK cents. The company said it made a profit of HK$13.9 million for the year ended March 31 from a loss of HK$114.4 million a year before.
ICG Asia Ltd. (715 HK ), the Asian arm of Internet start-up investor, Internet Capital Group Inc., surged 10.5 cents, or 23 percent, to 57 HK cents, its highest since Dec. 14 last year. A group led by Hutchison Whampoa Ltd. agreed to pay 25 cents apiece, or about $94.5 million, for Internet Capital Group's 2.95 billion shares in ICG Asia. The stock surged 45 percent on June 11 before it was suspended from trading.
Pacific Century CyberWorks Ltd. (8 HK ), Hong Kong's largest telecommunications company, fell 2.5 cents, or 1.1 percent, to HK$2.30. Its joint venture with Telstra Corp., Reach Ltd., applied for a Singapore license as part of plans to rely less on Hong Kong and Australia for sales.
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