Hong Kong stocks close 1.38% up

HONG KONG, May 18 (Xinhua) -- Hong Kong stocks moved
up 232.21 points, or 1.38 percent to close at 17,022.91 on Monday.

Turnover climbed to 66.38 billion HK dollars (8.57
billion U.S. dollars), from Friday's 58.06 billion HK dollars (7.50 billion U.S.
dollars).

The index traded between 16,334.36
and 17,062.49.

The gain seen in the afternoon session was attributed
to strength in property companies and Mainland's stock market, according to
analysts who expected the blue-chip index to consolidate in the near term after
the market's recent strong rally, though some said ample liquidity should lend
the market support.

Property firms led Monday's gains on a positive
outlook for the sector. New World Development advanced 6.9 percent to 12.76 HK
dollars, Sino Land jumped 4.1 percent to 11.30 HK dollars, and Henderson Land
was up 3.5 percent at 38.50 HK dollars.

JPMorgan Monday raised the Hang Seng Index 2009
year-end target to 19,800 from 16,600, and recommended investors to buy more
property stocks.

However, Credit Suisse downgraded Hong Kong's
property sector on Monday to Underweight from Market Weight, because a recent
strong run up in property stocks has not been matched by fundamental
improvements.

The benchmark Shanghai Composite Index, which tracks
both A and B shares, ended up 0.3 percent at 2,652.78, rebounding from an early
fall to 2,589.61, led by gains in coal and power companies, which supported the
Hong Kong market.

Hong Kong's H-share index, which tracks the Hong
Kong-listed shares of Mainland-registered firms, rose 1.9 percent to 9,792.24.

Hong Kong bourse operator Hong Kong Exchanges and
Clearing rose 5.8 percent to 109.70 HK dollars on strong turnover.

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