The blue-chip Hong Kong Hang Seng Index rose by 104.45 points (0.5%) to 20012.38, its highest close since May. Volume totalled 45.26 billion Hong Kong dollars (5.84 billion USD) as investors expected Chinese stocks to put in a strong showing when mainland investors return from holiday on Monday.
A-shares–China stocks traded in Shanghai and Shenzhen–will start changing hands again Monday after a weeklong holiday.
China names led blue-chip gains on expectations stocks will do well when A-shares start trading again Monday. Conglomerate Citic Pacific rallied 5.2% to HK$9.66, aluminium giant Chalco rose 3.1% to HK$3.28 and port operator Cosco Pacific closed up 2.8% at HK$11.00.
Li & Fung was 2.6% higher at HK$12.04, spurred by a Reuters report saying it is in advanced talks to buy New-York based sourcing firm Synergies Worldwide. The company specializes in low-cost sourcing and has a strong foothold in manufacturing centers like India, Pakistan and Bangladesh.
The financial news isn’t all good however, Reuters reports that Fitch Ratings has revised steel giant China Oriental’s outlook from stable to negative, as deceleration in China’s industrial production growth hits steel producers hard.