Hang Seng Surpasses 22,000 in Heavier Volume
The Hang Seng Index rose 1.56% to close at 22,208.16 on Friday, April 9, while the Hang Seng China Enterprises Index was up 1.5%. Main board trading volume increased to HK$75.21 billion.
Telecom stocks soared on news that China plans to expand its investment in the 3G mobile standard to RMB 400 billion by 2011. A regulatory draft issued by eight state agencies said the country will have more than 400,000 3G base stations and service 150 million users by 2011. Mobile handset and wireless company SIM Technology Group (2000.HK) shot up 18.89%, while China Unicom (NYSE:CHU, 0762.HK, 600050.SH), China Telecom (NYSE:CHA, 0728.HK) and China Mobile (NYSE:CHL, 0941.HK) built up 3.55%, 2.84%, and 1.99%, respectively. ZTE Corporation (0763.HK, 000063.SZ) gained 3.73%, after it reported net profit of RMB 2.46 billion in 2009, up 48.06% year-on-year, from revenues of RMB 60.27 billion, up 36.08% year-on-year, on April 8.
Tencent (0700.HK) rose 2.28%. Rumors earlier this week said that Tencent is battling two Russian companies in a bid for instant messaging service ICQ.
Heavyweight resource companies helped to lift the index, especially Aluminum Corporation of China (Chalco) (NYSE:ACH, 2600.HK, 601600.SH) which added on 5.29%. Coal producers China Shenhua Energy (601088.SH, 1088.HK) Yanzhou Coal Mining (600188.SH, NYSE:YZC, 1171.HK) rose 2.09% and 2.1%, respectively. Oil companies bounced back from losses the previous day, with China National Offshore Oil Corporation (CNOOC) (NYSE: CEO, 0883.HK) and PetroChina (NYSE:PTR, 601857.SH, 0857.HK) growing a respective 2.5% and 2.47%.
China's most famous drink makers tacked on big gains on Friday. Mengniu Dairy Company Limited (2319.HK) rose 4.93%, Huiyuan Juice (1886.HK) gained 4.38%, and Tsingtao Brewery (0168.HK, 600600.SH) grew 2.11% after it reported a 79% annual increase in its 2009 profit attributable to equity holders to RMB 1.25 billion.
China Merchants Banks (3968.HK, 600036.SH) rose 3.6%. Industrial and Commercial Bank of China (ICBC) Asia (0349.HK) grew 3.45%, while HSBC (NYSE:HBC, LON:HSBA, 0005.HK) gained 2.89% on Friday.
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