BEIJING: Chinese stocks rose in Hong Kong, sending the benchmark index toward its biggest weekly gain since April, after investors speculated the government will take more steps to boost the economy and Federal Reserve minutes indicated the central bank isn’t in a hurry to raise interest rates.
Shanghai Composite Index climbed 0.7 percent in shrinking turnover.Hong Kong’s Hang Seng China Enterprises Index rallied 3 percent to 10,594.09 at the noon break, extending this week’s advance to 9.4 percent. Industrial & Commercial Bank of China Ltd., the biggest stock, and PetroChina Co. surged at least 4.7 percent, poised for gains of at least 12 percent this week. The Hang Seng Index rose 1.7 percent on Friday as trading volumes surged 44 percent above the 30-day average for this time of day.
The H-shares gauge, the worst performer among global benchmarks last quarter along with the Shanghai index, has rebounded 16 percent from a September low, as automakers rallied on a tax cut to passenger-vehicle purchases and energy companies gained on higher oil prices. Investor sentiment has also improved after disappointing jobs data from the U.S. pushed back expectations for a rate increase this year.
“H shares follow cues from the overseas market, particularly the U.S., so it’s more subject to foreign flows,” said Wu Kan, a Shanghai-based fund manager at JK Life Insurance Co. “We all know that the economy is not doing good so people are expecting the government will continue to do more to revive growth.”
