HONG KONG: Hong Kong rose, headed for their best four-day run since April, as automakers resumed their advance and casino operators extended gains.
The Hang Seng China Enterprises Index rallied 0.7 percent to 9,951.36 at the noon break in Hong Kong. The H-share gauge is headed for a 7.8 percent four-day increase as supportive policies from China’s government for car manufacturers and developers buoy investor sentiment, along with prospects of the U.S. keeping interest rates lower for longer. BYD Co. and Geely Automobile Holdings Ltd. climbed, building on last week’s advance after a tax cut on passenger-vehicle purchases. Sands China Ltd. and Wynn Macau Ltd. jumped at least 6.2 percent after JPMorgan Chase & Co. raised its ratings on the gaming companies.
The Hang Seng Index added 0.1 percent. Mainland markets are shut until Oct. 8 for National Day holidays. The Hang Seng China Enterprises Index is trading at 7.4 times estimated earnings, less than half the global average, after tumbling as much as 39 percent from this year’s peak on renewed concerns about China’s economy. The nation’s growth will slow to 6.8 percent in 2015, below the government’s goal of 7 percent, according to the median of economist estimates compiled by Bloomberg.
“China has been doing monetary policy adjustments but they are thinking alternative policies may stimulate the market, like particular industry incentives,” which will help over the medium term, said Simon Lam, research director at Christfund Securities Ltd. Investors are also preparing for mainland markets to rise when they open from holidays after global markets advanced, he said.
