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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Hong Kong stocks up 1.51% following Wall Street rally

HONG KONG, May 15 (Xinhua) -- Hong Kong stocks advanced 249.01 points, or
1.51 percent to close at 16,790.7 on Friday.

Boosted by overnight rally on Wall Street, the benchmark Hang Seng Index
opened higher in the morning and fluctuated in the positive territory throughout
the trading.

The bounce of Hong Kong stocks was believed to have mitigated losses in
previous sessions this week, when share prices tumbled after robust gains in
seven consecutive days.

The day high was 16,953.41 and the day low stood at 16,736.18.

Turnover shriveled to 58.06 billion HK dollars (7.50 billion U.S. dollars),
from Thursday's 63.65 billion HK dollars (8.22 billion U.S. dollars).

Index heavyweight HSBC outperformed by rising 3.1 percent to 64. 3 HK
dollars and the sole market operator HKEx was up 1.7 percent to 103.7 HK
dollars.

Hong Kong-listed Chinese financial companies all registered increase in
share prices. The country's biggest lender ICBC surged3.6 percent to 4.65 HK
dollars; China Construction Bank (CCB), which has been under close scrutinize
among investors after the Bank of America sold large numbers of CCB shares, rose
1.9 percent to 4.79 HK dollars. Insurer Ping An advanced 1.6 percent to 49.35 HK
dollars and its arch rival China Life was up 0.9 percent to 27.55 HK dollars.

Oil-related stocks were all higher, with Sinopec up 1.0 percent to 8.09 HK
dollars, CNOOC up 2.0 percent to 9.98 HK dollars and ChinaPetrol up 1.7 percent
to 6.1 HK dollars.

Local property stocks grabbed a fair share of Friday's market rally. Cheung
Kong, the business conglomerate headed by Hong Kong's richest man Li Ka-shing,
closed 1.4 percent higher at 83.15 HK dollars, while SHK Properties, the leading
residential developer in Hong Kong, gained 1.3 percent to 81.6 HK dollars.

Despite price rise in most blue chips, market observers believe downward
pressure still hangs over the market, citing falling investment figures in the
Chinese mainland and sharp deterioration of GDP in the first quarter in Hong
Kong.

China's Ministry of Commerce announced Friday that the amount of direct
foreign direct investment into China fell 21 percent year on year in the first
four months, signaling that a recovery isn't yet firmly in place in the world
third largest economy.

The Hong Kong SAR government said it would downgrade annual growth
estimation for 2009 as exports and unemployment continue to worsen in the Asian
financial hub. (7.743 HK dollars = 1 U.S. dollar)

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Banks, securities firms in Hong Kong have better access to mainland market

HONG KONG, May 9 (Xinhua) -- The Chinese central government will further ease authorization requirements for Hong Kong banks to expand their existing network in the neighboring mainland province of Guangdong, under an expanded economic and trade agreement signed Saturday.

Subsidiaries of a Hong Kong bank in Guangdong shall be able to expand its network not only in the city of registration, but also in other cities in the province without first establishing separate subsidiaries there, according to the Supplement VI to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA).

"This will enable the banks to expand their business network, and improve the quality and efficiency of banking services provided to enterprises," said Donald Tsang, chief executive of the Hong Kong Special Administrative Region (HKSAR).

Securities firms in the mainland and Hong Kong shall also be allowed to set up joint venture securities investment advisory companies in Guangdong.

The Hong Kong securities firm can hold up to a third of the stakes in the joint venture companies, according to the supplement agreement, which was signed by John Tsang, financial secretary of the HKSAR government, and the central government's Vice Minister of Commerce Jiang Zengwei in Hong Kong on Saturday.

Qualified mainland securities firms, upon approval by regulatory authorities, can set up subsidiaries in Hong Kong. The introduction of open-end index-tracking exchange-traded fund based on Hong Kong stocks will also be explored in the mainland.

The supplement shall come into effect on Oct. 1 this year, three months ahead of the usual schedule for previous supplements, to help fight the ongoing economic downturn.

Chinese mainland market opened wider to HK businesses

HONG KONG, May 9 (Xinhua) -- The Chinese central government and the government of the Hong Kong Special Administrative Region (HKSAR) on Saturday signed the sixth supplement to a key trade agreement to give Hong Kong firms greater and easier access to the mainland market for tourism, securities and banking services, among others.

Under the supplement agreement, authorization requirements will be further eased for Hong Kong commercial banks to expand their existing networks in the neighboring mainland province of Guangdong to cover different cities province-wide.

Joint venture securities investment advisory firms between Hong Kong businesses and their mainland counterparts shall also be allowed starting Oct. 1, although the percentage of shareholding by the Hong Kong side was restricted to no more than one-third.

Mainland travel agents can also organize group tours for mainland residents bounding for the province of Taiwan to enter and remain in Hong Kong in transit. The aim was to help the trade develop multi-destination package offers, said Donald Tsang, Chief Executive of HKSAR.

The Supplement VI to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) was signed by John Tsang, who is financial secretary of the HKSAR government, and Jiang Zengwei, the central government's Vice Minister of Commerce at a ceremony in Hong Kong.

Speaking at the ceremony, Donald Tsang said the supplement agreement introduces 29 measures that are built on the liberalization of 20 services sectors and open two more sectors to Hong Kong businesses, namely, research and development and rail transport.

"With the new supplement, the total number of services sectors covered by the CEPA and its supplements will thereby be expanded from 40 to 42," Jiang said.

The liberalization measures cover, among others, audio and visual services, telecommunications, legal services, convention and exhibition, transport, printing and publishing. Some of the measures will be first implemented in Guangdong on a pilot basis.

Mutual recognition of professional qualifications will be explored and encouraged in sectors such as accounting, architecture, real property and printing services. Hong Kong pharmacists shall be allowed to sit for exams and register in the mainland.

In addition to joint venture law firms, Hong Kong lawyers, upon meeting certain qualification requirements, can apply to practice as lawyers in the mainland.

The new measures will take effect on Oct. 1, three months earlier than usual, to "allow the trade to enjoy the benefits earlier," Jiang said at the ceremony.

Donald Tsang welcomed the agreement, saying that the new measures will be mutually beneficial and help Hong Kong overcome the impacts of the ongoing economic downturn.

It is roughly estimated the service trade liberalization measures and the individual travel permit scheme under the CEPA agreements created 43,200 jobs from 2004 to 2008 in Hong Kong. The individual travel permit scheme alone contributed 58 billion HK dollars (7.4 billion U.S. dollars) of extra consumption in Hong Kong.

The CEPA measures, meanwhile, brought 46 billion HK dollars (5.9 billion U.S. dollars) of extra income to Hong Kong businesses providing services in the mainland and created 49,500 jobs in the mainland, Donald Tsang said at the ceremony.

Special Report: Global Financial Crisis

HK foreign-currency reserves up $7.1 bln in April

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HONG KONG, May 7 (Xinhua) -- Hong Kong's official foreign- currency reserve
assets rose to 193.4 billion U.S. dollars in April, up 7.1 billion U.S. dollars
on March, the Monetary Authority of Hong Kong said on Thursday.

Including unsettled forward contracts, foreign currency reserve assets
stood at 194 billion U.S. dollars. The total foreign-currency reserve assets
represent about eight times the currency in circulation, or 45 percent of Hong
Kong dollar M3.

Hong Kong is the world's seventh largest holder of foreign currency
reserves, after the Chinese mainland, Japan, Russia, China's Taiwan, India and
South Korea.

Official: HK plays role as financial gateway to China

HONG KONG, May 6 (Xinhua) -- Hong Kong Secretary for
Financial Services and the Treasury KC Chan called on Belgian investors to take
advantage of the expanding renminbi business in Hong Kong, a government press
release said on Wednesday.

According to a press release from the Information
Services Department of Hong Kong Special Administrative Region (HKSAR)
government, when addressing a business luncheon in Brussels, Chan said the
Central Government has announced a pilot scheme for using renminbi for
cross-border trade settlements, strengthening Hong Kong's role as the financial
gateway to China.

"Both our financial industry and trade between the
two places will benefit immensely from this breakthrough," he said. "We will
announce the implementation details as soon as they are finalized, and we will
continue to work towards aligning our two financial systems to become a more
efficient and low-risk corridor for investment into and out of the Chinese
mainland."

Meanwhile, he said the HKSAR government is working
closely with other economies and the international financial community to
respond to the global financial crisis in a "co-ordinated and
mutually-reinforcing manner", with a view to reaching a consensus on a new
financial architecture to better suit the globalized world.

Hong Kong stocks up 3.31%

Special Report:Global Financial Crisis

HONG KONG, April 30 (Xinhua) -- Hong Kong stocks once went up 495.05 points, or 3.31 percent, during morning session on Thursday to 15,452.

The market's benchmark Hang Seng Index once reached its day high 15,496.67 on Thursday morning. Properties were strong, with Sino Land surge 6.20 percent, Cheung Kong rose 4.96 percent, Henderson Land, 4.64 percent.

Hong Kong stocks end 2.76% up

Special Report:Global Financial Crisis

HONG KONG, April 29 (Xinhua) -- Hong Kong stocks rose 401.84 points, or
2.76 percent to close at 14,956.95 on Wednesday.

Market turnover went downward to 50.70 billion HK dollars (about 6.54
billion U.S. dollars) from Tuesday's 56.24 billion Hong Kong dollars.

Investor concerns over swine flu took a back seat after the index fell 4.6
percent in the previous two sessions, as people now believe it is still too
early to assess the risks of a pandemic, traders said.

Consumer trading firm Li and Fung surged 7.2 percent to 21.05 HK dollars
(about 2.72 U.S. dollars) after better-than-expected U.S. consumer confidence
data overnight.

Cathay Pacific rebounded after falling on concerns over the swine flu
outbreak, leading Hong Kong shares higher Wednesday. It rose 5.6 percent to 8.81
HK dollars after a two-day 8.8 percent drop due to swine flu fears.

Citigroup wrote that it is too early to conclude the strong recovery in
China air travel will be disrupted by swine flu, given swift measures by global
agencies.

Sinopec rose 3.6 percent to 5.80 HK dollars after posting an 85 percent
rise in first-quarter net profit.

It was also helped by news it expects its net profit for the first-half of
2009 to rise more than 50 percent from a year earlier due to lower oil costs.

Property companies outperformed the broader market, with the property
sub-index rising 4.1 percent. Wharf jumped 7.1 percent to 24.30 HK dollars and
Sun Hung Kai Properties rose 3.7 percent to 76.95 HK dollars.

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)

Hong Kong stocks end higher as property sector gains

Special Report:Global Financial Crisis

HONG KONG, April 17 (Xinhua) -- Hong Kong stocks closed slightly higher Fridays as property sector led the moderate gains, but a fall in China-related stocks, or H shares, limited the rise to resume 16,000 level.

The blue-chip Hang Seng Index rose 18.28 points, or 0.12 percent, to 15,601.27 after hitting an intraday high of 15,956.46. The index gained 7.1 percent, or 1,055 points, this week. Turnover rose to 75.30 billion HK dollars (about 9.73 billion US dollars) from Thursday's 74.63 billion HK dollars (about 9.64 billion US dollars).

Cheung Kong rose 0.9 percent to 76.76 HK dollars, but was off its intraday high of 79.60 HK dollars. It said it sold more than 90 percent of 1,068 units in a residential project in the New Territories since its launch Thursday.

Goldman Sachs also upgraded its view on the Hong Kong property sector to neutral from cautious, following the report, Sino Land jumped 9.8 percent to 10.24 HK dollars and Hang Lung Properties rose 1.7 percent to 21.30 percent.

Among the H shares, Chalco shed 4.5 percent to 6.22 HK dollars. PetroChina dropped 1.5 percent to 6.73 HK dollars and China Construction Bank was off 0.8 percent at 4.70 HK dollars.

Cathay Pacific fell 3.4 percent to 9.25 HK dollars. The Hong Kong-based airline said Friday its first-quarter revenue from passenger and cargo services fell 22.4 percent from a year ago, and it was to ask some staff to take unpaid leave.

The airline reported a net loss of 8.6 billion Hong Kong dollars (1.1 billion U.S. dollars) for 2008, a dramatic turnaround from the previous year's profit of 7 billion HK dollars. The company will also reduce passenger and cargo capacity.

HKEx rose 0.5 percent to 89.35, but off intraday high of 91.95 HK dollars.

Mengniu rose 4.83 percent to 13.02 HK dollars on rebound after Thursday's 5.6 percent decline on worse-than-expected 2008 results. After hit by melamine scandal last year, Mengniu's sales of liquid milk recovered rapidly, as first quarter sales volume had recovered to 80 percent of pre-melamine crisis level.

Hong Kong stocks close 0.55% lower

Special Report:Global Financial Crisis

HONG KONG, April 16 (Xinhua) -- Hong Kong stocks closed 0.55 percent lower
on Thursday as PetroChina led drops in blue chips on profit-taking, while index
heavyweight China Mobile and Esprit helped limit the market's decline.

The blue-chip Hang Seng Index fell 86.63 points to 15,582.99, after trading
between 15,517.39 and the year-to-date high of 15, 977.13. Turnover rose to
74.63 billion HK dollars (about 9.64 billion U.S. dollars) from Wednesday's
66.26 billion HK dollars ( about 8.56 billion U.S. dollars).

The market recovered some ground after early intra-day lows following the
release of the first quarter GDP data of China, but resumed the downtrend in the
afternoon session.

China's GDP expanded by 6.1 percent in the first quarter, according to the
National Bureau of Statistics. The data was largely in line with market
expectations.

PetroChina fell 2.3 percent to 6.83 HK dollars and Sinopec shed 1.0 percent
to 5.93 HK dollars. Sinopec dropped 1.00 percent to 5.93 HK dollars.

However, China Mobile, which had lagged the market rally, rose 1.4 percent
to 74.15 HK dollars, while Esprit jumped 4.98 percent to 40.05 HK dollars,
recovering from recent weakness caused by management changes at the company.

PICC PC tumbled 9.7 percent to 4.73 HK dollars after reporting a 98
percent drop in 2008 net profit to 50 million yuan from 2.99 billion yuan for
the previous year.

China Cosco fell 3.92 percent to 7.11 HK dollars and Bank of China moved
down 2.05 percent to 2.86 HK dollars.

China Eastern Airlines fell 5.6 percent to 1.34 HK dollars, after its
worse-than-expected 2008 results. The airline swung to a net loss of 15.3
billion yuan last year from a net profit of 379 million yuan the previous
year.

Hong Kong's Exchange Fund foreign assets up $10.53 bln in March

HONG KONG, April 14 (Xinhua) -- The foreign assets of Hong Kong's Exchange
Fund amounted to 1.3331 trillion HK dollars (172.18 billion U.S. dollars) in
March, up 81.5 billion HK dollars(10.53 billion U.S. dollars) from February,
revealed the Monetary Authority here Tuesday.

The Monetary Base, comprising Certificates of Indebtedness,
government-issued currency notes and coins in circulation, the aggregate balance
of the banking system and Exchange Fund bills and notes issued, amounted to 570
billion HK dollars (73.62 billion U.S. dollars), according the Monetary
Authority.

Claims on the private sector amounted to 114.2 billion HK dollars (14.75
billion U.S. dollars).

Foreign liabilities, representing mainly obligations under repurchase
agreements, totaled 400 million HK dollars (51.66 million U.S. dollars).

Hong Kong's RMB pilot plan covers 400 Chinese mainland enterprises

Special Report:Global Financial Crisis

HONG KONG, April 12 (Xinhua) -- About 400 enterprises in the Chinese
mainland had been selected to participate in the Renminbi cross-border trade
settlement pilot program, Under Secretary for Financial Services and the
Treasury of Hong Kong Julia Leung said here Saturday.

Speaking on a radio talk show here Saturday, Leung said enterprises in Hong
Kong would soon be able to settle trades in Renminbi through the banks with the
selected companies in the Chinese mainland.

Noting the program can reduce the risks and cost arising from fluctuations
in exchange rates, she said Hong Kong banks could expand extensively their
Renminbi services from individual clients to enterprises.

When asked whether the scheme includes trade financing, Leung said
authorities in the Chinese mainland would announce the details soon.

"The Monetary Authority has made full preparation for the program including
conducting tests on the Renminbi clearing system," Leung noted, adding that "the
system can start operation once the Chinese mainland comes up with the
operational details."

When asked whether the Hong Kong Special Administrative Region (HKSAR)
government would change Hong Kong's linked exchange rate with the U.S. dollar,
the under secretary said the system had been working effectively and the HKSAR
government had no plan to change it.

Hong Kong forex reserves rises to $186.2 bln in March

Special Report:Global Financial Crisis

HONG KONG, April 7 (Xinhua) -- Hong Kong's official foreign currency
reserves rose to 186.2 billion U.S. dollars at the end of March, compared with
177.1 billion U.S. dollars at the end of February, the Hong Kong Monetary
Authority said Tuesday.

The foreign currency reserves including unsettled forward contracts also
stood at 186.2 billion U.S. dollars at the end of March 2009.

The total foreign currency reserve assets of 186.2 billion U.S. dollars
represent about eight times the currency in circulation, or 45 percent of HK
dollar M3, the broadest of a range of measures of money supply in an economy.

It makes Hong Kong the world's eighth largest holder of foreign reserves.