Hong Kong stocks end sharply higher, boosted by China shares

Hong Kong stocks closed sharply higher on Monday, boosted by strong performance of companies registered in the Chinese mainland following the latest third quarter economic data.

The benchmark Hang Seng Index rose 137.69 points, or 0.95 percent, higher to open near the day's lowest level at 14,691.9 and once widened its gains to as much as 918.47 points, or 6.31 percent, to the day's highest 15,472.68 during the afternoon session after China released its new third quarter economic figures.

China's National Bureau of Statistics said the country's gross domestic product grew 9 percent in September but the GDP still rose 9.9 percent year on year in the first nine months.

China's consumer price index also weakened 0.3 percent to 4.9 percent in September from August's 4.9 percent, a figure that may leave room for the country's central bank to slice its interest rate further to stimulate the economy.

Hang Seng Index surged 768.8 points, or 5.28 percent, to close at 15,323.01.

Turnover fell to 53.75 billion HK dollars , however, from Friday's 59.35 billion HK dollars (7.66 billion U.S. dollars as some investors chose to up hold their cash amid great volatility in the past week.

Amid 42 constituents of the benchmark Hang Seng Index, advancers greatly outnumbered losers 41 to 1. Wholesale and retail sales company Esprit was the only constituent that fell, down 3.98 percent to 41 HK dollars.

Market heavyweight HSBC, which accounts for the largest weighting of the index, rose 1.71 percent to 107 HK dollars, lifting the index by 45.87 points alone.

China Mobile, or the country's largest mobile phone operator, was the major driving force for the market's upsurge by advancing 7.56 percent to 71.1 HK dollars, boosting the index by 131.13 points.

Hong Kong Exchanges and Clearing Ltd., the market's sole operator, rose 4.27 percent to 85.5 HK dollars.

All of Hong Kong's real estate companies were sharply higher. Sun Hung Kai Properties, Hong Kong's largest house developer, jumped 8.5 percent to 68.3 HK dollars. Cheung Kong advanced 7 percent to 76.5 HK dollars. Henderson Land rose 7.69 percent to 28HK dollars. New World Development gained 6.48 percent to 7.56 HK dollars. Sino Land soared 10.67 percent to 8.3 HK dollars. Hang Lung Property increased 7.01 percent to 16.8 HK dollars.

China Enterprise Index, or H-shares, a barometer of companies registered in the Chinese mainland, rose 433.6 points, or 6.19 percent, to 7,441.13.

China's energy companies all ended sharply higher. PetroChina, the country's largest oil producer, increased 8.28 percent to 6.41HK dollars. Sinopec, Asia's largest oil refiner, surged 10.56 percent to 5.76 HK dollars. CNOOC, China's largest offshore oil company, bounced 4.53 percent to 6 HK dollars.

Banking and insurers in China were higher. ICBC, China's largest lender, rose 7.48 percent to 3.88 HK dollars. Bank of China, the country's second largest bank, advanced 6.3 percent to 2.53 HK dollars. China Construction Bank rose 4.86 percent to 3.67HK dollars. China Life, the country largest insurance company, jumped 7.32 percent to 24.2 HK dollars. Ping An added 3.1 percent to 36.6 HK dollars.

Housing companies in China were sharply higher as the State Council, or China's cabinet, encouraged citizens to buy houses in its economic stimulus package. Country Garden rose 9.88 percent to1.78 HK dollars. R&F Properties added 6.99 percent to 5.51 HK dollars. China Overseas soared 12.25 percent to 9.07 HK dollars. KWG Property rose 8.7 percent to 2 HK dollars. SOHO China rose 9.1percent to 2.4 HK dollars. Greentown China added 3.75 percent to 2. 77 HK dollars.

Source:Xinhua