Hong Kong stocks edged up on Monday morning, on track to break a two-day run of losses, with infrastructure-related stocks surging after Beijing announced plans to set up a special economic zone in the heavily polluted province of Hebei.
Hong Kong stocks edged up on Monday morning, on track to break a two-day run of losses, with infrastructure-related stocks surging after Beijing announced plans to set up a special economic zone in the heavily polluted province of Hebei. Mainland markets were closed for a holiday and will resume trading on Wednesday.
The benchmark Hang Seng index had gained 0.4 percent to 24,205.59 points by 0612 GMT, while the Hong Kong China Enterprises Index edged up 0.24 percent, to 10,297.92.
Shares of China building materials maker BBMG Corp surged as much as 46 percent to its highest since May 2015, making it the top performer in Hong Kong. The company said in a statement it was not aware of any reason for the jump. LongiTech Smart Energy Holding Ltd, a smart energy solution provider which also engages in public infrastructure construction, climbed as much as 70 percent to its highest since April 2015.
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China VAST Industrial Urban Development and Tianjin Port Development Holdings Ltd rose 21 percent and 19 percent, respectively. “They were boosted by news of a new special economic zone nearby Beijing and Tianjin. Those infrastructure and cement plays nearby the area shot up because of the news,” said Alex Wong, a director at Ample Finance Group.
China will establish a new special economic zone in Hebei province in order to promote integration with the neighbouring cities of Beijing and Tianjin, the government announced on Saturday. Kulun Energy Co Ltd rose 4.3 percent, to its highest since July 6, 2015, while China Shenhua Energy Co Ltd rose 1.3 percent.
China’s official Purchasing Managers’ Index (PMI) rose to 51.8 in March from the previous month’s 51.6 and was well above the 50-point mark that separates growth from contraction on a monthly basis. The reading was stronger than the 51.6 that economists had expected and the highest since April 2012.
(Reporting by Donny Kwok and Anne Marie Roantree; Editing by Eric Meijer and Randy Fabi)