H-Shares Bolt Following 5-Day Break, Near 22,000

• Apr 07, 2010
• Sectors:   China Report
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The Hang Seng Index increased 1.72% to close at 21,908.33 on Wednesday, April 7, the market's first day of trading since April 1, while the Hang Seng China Enterprises Index climbed 2.27%. Main board trading volume swelled to HK$65.7 billion, as investors rushed to catch up with gains made in other markets during Hong Kong's five-day holiday break.

China Construction Bank (0939.HK, 601939.SH), Industrial and Commercial Bank of China (1398.HK, 601398.SH) and Bank of China (BoC) (3988.HK, 601988.SH) climbed 3.69%, 3.64%, and 2.85%, respectively, all reaching their highest levels since early to mid-January.

Resources companies made strong gains on Wednesday. Sustained growth in oil prices lifted China National Offshore Oil Corporation (CNOOC) (NYSE: CEO, 0883.HK) 5.35% on Wednesday to its highest level since July 2008. PetroChina (NYSE:PTR, 601857.SH, 0857.HK) shares gained 1.52%. China Coal Energy (1898.HK, 601898.SH, FRA:CVV) and China Shenhua Energy (1088.HK, 601088.SH) rose 4.29% and 3.77%, respectively, following gains in their A-shares the previous day. Hong Kong shares of aluminum producer Rusal (0486.HK, EPA:RUSAL) declined off mid-day highs to close 4.97% higher.

A heavyweight Brazilian resources company may list in Hong Kong and has already contacted investment banks and legal counsel in preparation, Hong Kong Exchanges and Clearing Limited (0388.HK) Chairman Ronald Arculli said, Sina reports quoting Hong Kong media. Unnamed sources within the investment community say that the company is Brazilian metals and mining company Vale (NYSE:VALE), which plans to list in Shanghai or Hong Kong, Sina reported.

Home appliance and electronics retailer Gome (0493.HK) gained 1.76% during the day, before announcing its 2009 earnings after market close. China Life Insurance (NYSE:LFC, 2628.HK, 601628.SH) gained 0.92% ahead of its full year 2009 earnings. The insurer estimated in early March that its 2009 net profit attributable to shareholders would be up more than 200% annually, from RMB 10 billion in 2008.

Esprit (0330.HK) shares fell 3%. QQ.com reported April 7 that Esprit Chairman Heinz Jurgen Krogner-Kornalik ("Gao Hansi") now holds 3.2 million shares, equivalent to 0.25% of the company's total shares, after having sold 600,000 shares for an average price of RMB 59.47 each on March 26.

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