Hong Kong - Hong Kong stocks rose, with the benchmark index rising for a second day, as Chinese developers and exporters advanced.
China Overseas Land & Investment, the largest mainland developer listed in Hong Kong, rose 1.7 percent to lead the Hang Seng Index higher after the China Securities Journal reported possible easing of a property tax.
Wynn Macau added 1.3 percent as casinos climbed.
Man Wah Holdings, a sofa maker that gets half its sales from the US, advanced 3.3 percent.
Lifestyle International Holdings rose 1.4 percent after Qatar Investment Authority and Thomas Lau’s family were said to weigh a full takeover of the department-store operator.
The benchmark Hang Seng Index rose 0.2 percent to 23,070.26 at the close with volume 27 percent lower than the 30-day average, while a measure of Chinese shares traded in Hong Kong added 0.6 percent.
The MSCI Hong Kong Index slid 0.2 percent after briefly erasing losses spurred by clashes between police and demonstrators that started September 26.
Talks are to resume tomorrow after violence this weekend.
“At the early stage of protests the market was sold off as global investors focused on the political risks in Hong Kong, but the demonstrations didn’t impact the stock exchange or the financial markets,” said Mari Oshidari, a Hong Kong-based strategist at Okasan Securities.
“Investors are hoping some government support measures will come out from the fourth plenum meeting, and that’s helping support the market.”
Liquidity Support
The People’s Bank of China was said to plan the injection of about 200 billion yuan (R361 billion) into some national and regional lenders as Premier Li Keqiang steps up stimulus to support economic growth.
The funding is to help prepare for year-end liquidity demands, a government official familiar with the matter said on October 17, asking not to be identified because there hasn’t been an official announcement.
Carrie Lam, Hong Kong’s No. 2 official, announced the next round of talks after police clashed with about 9,000 demonstrators at the end of last week.
The Hong Kong Federation of Students, one of the groups leading the protests, said it will participate in the dialogue.
They are demanding China reverse its decision that candidates for the city’s leadership election in 2017 must be vetted by a committee.
Chief Executive Leung Chun-ying has said the decision isn’t negotiable.
Top Communist Party officials meet in Beijing this week for their fourth plenum, with data on gross domestic product due tomorrow.
The nation will set an economic growth target of about 7 percent for 2015, the weakest expansion in a generation as leaders tackle debt risks and imbalances, according to analysts polled by Bloomberg.
Stock Link
A statement posted by the China Securities & Regulatory Commission last week didn’t give details as to when cross-border equity trading between Hong Kong and Shanghai would begin.
Stocks had risen earlier on October 17 on speculation the regulator would announce October 27 as the start date.
Hong Kong Exchanges & Clearing chief executive Charles Li told reporters last week there is no timetable for the program.
The plan will allow foreign investors unprecedented access to mainland shares and give Chinese investors access to Hong Kong-listed equities.
Futures on the Standard & Poor’s 500 Index added 0.2 percent today.
The gauge rose 1.3 percent on October 17 as earnings beat estimates, consumer confidence reached a seven-year high and investors speculated that global central banks will add more stimulus.
Man Wah gained 3.3 percent to HK$11.98.
Li & Fung, the world’s biggest supplier of clothes and toys to retailers including Wal-Mart Stores, increased 1.4 percent to HK$9.22.
Global Uncertainty
Uncertainty about economic growth in China and Europe as well as the timing for US interest-rate hikes helped drag Hong Kong’s benchmark equity gauge down 8.9 percent from this year’s high.
The Hang Seng Index traded at 10.6 times estimated earnings, compared with 15.7 for the S&P 500 at the last close.
China Overseas Land advanced 1.7 percent to HK$21.40, and Guangzhou R&F Properties gained 1.9 percent to HK$8.08.
China may exempt the transaction tax for some existing homes owned for more than two years, China Securities Journal reported, citing unidentified people.
Lifestyle rose 1.4 percent to HK$14.80.
Qatar Investment Authority and Hong Kong’s Lau family are considering options including a full takeover of the company after the sovereign wealth fund bought a minority stake, according to people with knowledge of the matter.
Gaming companies increased.
Wynn Macau rose 1.3 percent to HK$27.30.
SJM Holdings, Asia’s biggest casino operator, gained 1.4 percent to HK$15.70. - Bloomberg News