HONG KONG: Hong Kong stocks rose further in Friday morning trade, as the benchmark Hang Seng Index HSI, +0.66% advanced 0.5%, while the mainland-China-tracking Hang Seng China Enterprises Index HSCEI, +0.91% was up 0.9%. Chinese insurance companies rose substiantially after several media reports said the nation’s top insurance regulator would soon unveil guidelines allowing insurers to sell preferred stock, expanding fundraising options for the sector. China Life Insurance Co. 2628, +1.83% LFC, +2.34% and People’s Insurance Company Group of China Ltd. 1339, +0.99% each gained 1.8%, while Ping An Insurance Group Co. 2318, +1.88% PNGAY, +1.99% 601318, +0.04% added 1.7%, China Pacific Insurance Group Co. 2601, +1.47% 601601, -0.80% CHPXF, +7.96% improved by 1.4%, and New China Life Insurance Co. 1336, +0.92% moved 1% higher. Meanwhile, Bank of Communications Co. 3328, -0.74% BKFCF, +0.52% 601328, -1.69% rose 0.5% after the bank reached a deal with HSBC Holdings PLC 0005, +0.00% HSBC, -0.21% HSBA, -0.34% to work together on the upcoming mutual recognition of funds between Hong Kong and Shanghai, a move scheduled to be launched by regulators in July. HSBC shares traded flat. Among other market movers, CGN Power Co. 1816, +1.55% rebounded 3.1% following two days of heavy declines after Japan’s Daiwa Institute of Research Group rated the company at outperform, citing higher profitability in the past several years compared to rival China National Nuclear Power Co. (CNNP) 601985, +10.06% Shares of CNNP, which debuted in Shanghai on Wednesday, soared limit-up by 10% for a second straight day. Meanwhile, the Shanghai Composite Index SHCOMP, +0.44% also rose, up 0.2% after a 0.3% gain the previous day.
