Chinese stocks in Hong Kong climbed for a sixth day, led by banks and insurers, as a report showed bad loans held steady and lenders reported higher earnings.
The Hang Seng China Enterprises Index advanced 0.5 percent as of 10:33 a.m., poised for its highest close this year. New China Life Insurance Co. climbed toward a seven-month high in Hong Kong after a conglomerate increased its stake in the company.
Industrial & Commercial Bank of China Ltd. gained as a gauge of the nation’s bad loans held at 1.75 percent in the second quarter after rising for almost three years. Shanghai Pudong Development Bank Co. jumped for a fifth day on the mainland after posting a 12 percent increase in first-half profit.
A raft of economic data due in the coming days is expected to provide more evidence that China’s economy is stabilizing. The nation’s factory output, retail sales and fixed-asset investment all held mainly steady in July, according to economists surveyed by Bloomberg before reports due Friday. Chinese stocks in Hong Kong have outperformed mainland peers this year amid optimism monetary easing by global central banks will boost inflows into the city.
“Both global easing and a stabilization in China’s economy have provided catalysts for Hong Kong stocks,” said Wei Wei, an analyst at Huaxi Securities Co. in Shanghai. “Hong Kong is a free market and isn’t subject to regulatory intervention, so stocks can reflect all this optimism. Bank stocks are like havens now as they have stable earnings growth and pretty low valuations.”
The Hang Seng China Enterprises Index traded at 9,364.40, while the benchmark Hang Seng Index added 0.2 percent. The Shanghai Composite Index slipped 0.1 percent after gaining as much as 0.6 percent. The Shanghai gauge’s 100-day volatility, a measure of price swings, dropped to its lowest level since 2014 on Wednesday.
By: Bloomberg News.
Contributing: Shidong Zhang.
Photo: China Daily.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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