Demonstrators sit on a road in Hong Kong, China, on Oct. 3, 2014.
The Hang Seng Index rose 0.6 percent to 23,064.56 at the close in Hong Kong after falling as much as 1.6 percent. The measure sank 2.6 percent in the holiday-shortened week, its steepest such drop since March. The Hang Seng China Enterprises Index of mainland shares also reversed losses to gain 0.4 percent today. The Hong Kong dollar rose 0.07 percent, the most since March, to HK$7.7588 per dollar.
“Bargain hunters are coming in and recognizing some sectors are oversold,” said Ryan Huang, a strategist at IG Ltd. in Singapore. “Retail and tourism stocks have
suffered the brunt of the sell-off, especially after news that China banned Hong Kong visas for domestic tour groups. Other sectors are fundamentally still the same and have no operations disrupted from protests but are weighed down by overall sentiment.”
China Overseas Land & Investment Ltd. and China Resources Land Ltd. (1109), the two largest mainland property companies listed in Hong Kong, each jumped at least 5 percent. People in China applying for a loan to buy a second home may get discounts previously only available to first-time home buyers if they have paid off their initial mortgage, the People’s Bank of China said Oct. 1. The central bank also eased a ban on mortgages for people buying a third home.
A demonstrator wearing a protective mask stands in front of the gate leading to the... Read More
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Hong Kong protesters strengthened barricades around the government’s main office building, digging in ahead of talks pledged by top official Leung Chun-ying aimed at defusing a week-long standoff that has led businesses and schools in some districts to shut. Leung said Hong Kong has no immediate plans to clear the protesters.Templeton Emerging Markets Group and Aberdeen Asset Management Plc, which oversee about $590 billion, say they’re preparing to buy Hong Kong-listed shares that were punished indiscriminately during the selloff. UBS Wealth Management says earnings growth of companies in the Hang Seng Index (HSI) will see “minimal impact” from the protests because the gauge contains few retail companies.
“Transportation in the Wan Chai area improved in the afternoon compared to how things were before the holiday,” said Sam Chi Yung, strategist at Delta Asia Securities Ltd. “There may be some arrangement not to hurt the economy or businesses too much.”
A-H Premium
The protests began Sept. 26 to oppose China’s decision that candidates for the 2017 election of chief executive be vetted by a committee. Critics say the system is likely to produce a new leader effectively handpicked by the government in Beijing. The student federation vowed to continue its sit-in until the government agrees to hold open elections, and that it will step up action if talks fall through.The Hang Seng China AH Premium Index, which measures the weighted average gap between the largest shares with listings in both Hong Kong and the mainland, rose to 100.36 on Sept. 30, the highest level since policymakers unveiled the Hong Kong-Shanghai exchange link in April. A level of 100 means H-shares in Hong Kong trade at the same price as A-shares on the mainland.
Hong Kong’s National Day visitor arrivals fell 7.3 percent from a year earlier, according to data on the city Immigration Department’s website. Luk Fook Holdings International Ltd. (590), a jewelry chain that gets most its sales in Hong Kong, slid 2.9 percent to HK$21.90.
Markets in mainland China remains closed for holidays and will reopen from Oct. 8. The benchmark Shanghai Composite Index (SHCOMP) this week capped its best quarterly performance since 2009 as investors weighed prospects for additional stimulus amid signs of mainland economic weakness.
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