HONG KONG: Hong Kong stocks rose further Friday morning, with mainland Chinese banks advancing broadly after the central-bank governor discussed liberalizing China’s interest rates.
The Hang Seng Index (HK: HSI) rose 0.4%, with the mainland-China-tracking Hang Seng China Enterprises Index rallying 1%.
People’s Bank of China Gov. Zhou Xiaochuan said Thursday that the probability is “very high” China will fully liberalize rates later this year.
Zhou also said there were plans to launch a deposit-insurance scheme in the first half of this year. Major mainland Chinese commercial banks rose sharply, as Bank of China Ltd. (HK:3988) (BACHY) (CN:601988) rose 2.6%,China Merchants Bank Co. (HK:3968) (CIHHF) (CN:600036) climbed 2.5%, China Minsheng Banking Corp. (HK:1988) (CN:600016) (CMAKY) advanced 2.1%, both Bank of Communications Co. (HK:3328) (BKFCF) (CN:601328) and China Citic Bank Corp. (HK:998) (CHBJF) (CN:601998) added 1.6% apiece, and China Construction Bank Corp. (HK:939) (CICHF) (CN:601939) rose 1.1%. Local lenders also posted gains, with Chongqing Rural Commercial Bank Co. (HK: 3618) up 1.5%, and Bank of Chongqing Co. (HK: 1963) higher by 1.1%. Most Chinese brokerage firm’s also notched gains after data from the Shanghai Stock Exchange showed the outstanding value of margin loans had hit a fresh record high. First Shanghai Investments Ltd. (HK: 227) tacked on 2.2%, China Everbright Ltd. (HK: 165) (CEVIF) headed 2.1% higher, and Citic Securities Co. (HK: 6030) (CIIHF) traded 1.8% higher. Chinese auto-rental provider CAR Inc. (HK: 699) improved by 2.1% after J.P. Morgan raised its target price for the stock. Over on the Chinese mainland, the Shanghai Composite Index (CN: SHCOMP) snagged a 1% gain, extending a 1.8% rally on Thursday.
