Hong Kong stocks close 0.96% higher, boosted by banking, property sectors

Special Report:Global Financial Crisis

by Wang Haiqing

HONG KONG, April 20 (Xinhua) -- Hong Kong stocks closed moderately higher
on Monday, boosted by the strong performance of banking and property sectors.

The benchmark Hang Seng Index fell 26.95 points, or 0.17 percent, to open
at 15,601,27 and moved out of negative territory after touching intra-day low
15,382.96 in the morning session.

The index once rose as much as 277.13 points, or 1.77 percent, to the day's
highest 15,878.4 before gaining 149.64 points, or 0. 96 percent, to close at
15,750.91.

Turnover fell sharply to 57.09 billion HK dollars (7.37 billion U.S.
dollars) from Friday's 75.30 billion HK dollars (about 9.73 billion U.S.
dollars).

HSBC, which accounts for the largest weighting of the Hang SengIndex,
underperformed the index by dipping 0.36 percent to 54.95 HK dollars.

Another market heavyweight China Mobile, the country's largest mobile phone
operator and the market's largest stock measured by capitalization, added 0.4
percent to 74.3 HK dollars after its net profits rose 5.2 percent to 25.2
billion yuan (about 3.7 billion U. S. dollars) in the first quarter.

Hong Kong Exchanges and Clearings Limited, the market's sole operator,
advanced 1.79 percent to 90.95 HK dollars.

Due to the resilience of the Chinese mainland economy, Hong Kong-listed
companies have become increasingly attractive to investors amid the ongoing
global economic slump.

Marco Mak, managing director of Hong Kong-based Taifook Research, said he
was not surprised by the rebound of close to 50 recent of the Hang Seng Index
since October, adding that the benchmark may rise to 18,000 at most this year.

Strong home sales over the weekend helped bolster local property companies.
Cheung Kong share price was up 3.46 percent to79.3 HK dollars. Sung Hung Kai
Property, Hong Kong's largest house developer, edged up 0.29 percent to 85.65 HK
dollars. New World Development was up 4.14 percent to 10.56 HK dollars.
Henderson Land rose 4.48 percent to 37.3 HK dollars on news of its chairman's
stake buildup.

Hong Kong-listed Chinese banks showed strong performance as they are posed
to benefit from the RMB bond business introducing in Hong Kong. ICBC, China's
largest lender, rose 0.67 percent to 4. 5 HK dollars. Bank of China jumped 4.98
percent to 2.95 HK dollars with the most turnover as investors expected the bank
to benefit the most from China's expansion of RMB business in Hong Kong.

China's insurers were higher. China Life, the largest insurance company in
the country, moved up 0.89 percent to 28.2 HK dollars. Ping An, China's second
largest insurance company behind China Life, rose 3.33 percent to 52.7 HK
dollars.

Hang Seng China H-financials Index closed 2.54 percent higher compared to
the previous day.

China Merchants Bank registered a 5.94-percent rise in share price,
followed by BOC Hong Kong with a 4.98-percent increase.

Other bluechips that registered robust growth include Wharf Holdings with
6.1 percent, China Merchants Holdings with 5.74 percent, and Bank of
Communications with 3.54 percent.

Energy companies were heading towards different directions. PetroChina, the
country's largest oil producer, rallied 2.38 percent to 6.89 HK dollars.
Sinopec, China's largest oil refiner, rose 3 percent to 6.19 HK dollars. CNOOC,
China's largest offshore oil company, skidded 0.87 percent to 9.12 HK dollars.
China Shenhua, the country's largest coal producer, gained 1.20 percent to 21 HK
dollars. (7.742 HK dollars = 1 U.S. dollar)