HK stocks rise on hopes of gov't's further economic measures

12/1/2008 5:04:27 PM   Source:Xinhuanet    Author:    [Font Size:Bigger Middle Smaller]
Hopes that China will take further measures to boost its economy led Hong Kong shares to end higher Monday, with index heavyweights China Mobile and China Construction Bank leading the gains.

The benchmark Hang Seng Index rose 220.60 points, or 1.59 percent, to 14,108.84 after trading between 13,659.44 and 14,253. 66 during the session.

Turnover rose to 43.93 billion HK dollars (5.67 billion U.S. dollars) from Friday's 42.37 billion HK dollars (5.47 billion U.S. dollars).

Analysts said the city's benchmark index will likely consolidate in the near term after rising for five straight days. The index has risen 13 percent since Nov. 24.

China property developers gained on the speculation over new policy measures. Mainland developer China Overseas rose 9.6 percent to 11.00 HK dollars and Wharf gained 1.6 percent to 18.70 HK dollars on its China exposure.

China-related companies rose on expectations of a more stabilized China market after the state pension fund pledged last week it will invest more in domestic stock markets and the government said Sunday it will subsidize purchases of home appliances in rural areas to boost domestic consumption. Analysts said more measures like these are on the way.

China Mobile rose 2.3 percent to 72.75 HK dollars, CNOOC ended 4 percent higher at 6.50 HK dollars and Citic Pacific jumped 16 percent to 6.03 HK dollars.

China Construction Bank gained 4.7 percent to 4.28 HK dollars and Industrial and Commercial Bank of China rose 4 percent to 3.95HK dollars. (7.75 HK dollars = 1 U.S. dollar)

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