As the People's Bank of China further cut interest rates ahead of the Two Sessions, and the China official manufacturing PMI edged higher to 49.9 in February, Hang Seng Index hit the peak at 24,996 but later receded 107 pts when pressing close to 25,000. It eventually gained 64 pts or 0.26% to 24,887. Hang Seng CHina Enterprises Index climbed 27 pts or 0.23% to 12,213. Market turnover increased to $79.698 billion.
Chinese financials generally pared early gains after midday. CM BANK (03968.HK) bounced 1.4%. ICBC (01398.HK) perked up 0.4%. CCB (00939.HK) rose 0.5%. Chinese insurers CHINA LIFE (02628.HK) and PING AN (02318.HK) mounted 0.2% and 0.1%. NCI (01336.HK) tumbled 3.2% after ceasing to introduce strategic investor.
The best-performing blue chip today is AIA (01299.HK), which rallied 3.7% and contributed 62 pts gains for the HSI. HSBC HOLDINGS (00005.HK) fell 0.4%. STANCHART (02888.HK) extended the uptrend with a gain of 2.2%.
CHINA UNICOM (00762.HK) and CHINA TELECOM (00728.HK) were granted the FDD licence to run 4G business. The former ended lower by 3% after early rally. The latter lifted 0.4%. CHINA MOBILE (00941.HK) dipped 0.6% after getting a rating downgrade to Equalweight by Morgan Stanley.
Energy-saving and environmental stocks headed north. CHINA SUNTIEN (00956.HK) and GUODIAN TECH (01296.HK) surged 9.3% and 13.5% respectively. GCL NEWENERGY (00451.HK) rocketed 23.4%. GCL-POLY ENERGY (03800.HK) jumped 5.4%. GCL NEWENERGY (00451.HK) soared 23%. JNCEC (00579.HK) and CHINA LONGYUAN (00916.HK) closed higher by 5.6% and 3.7% respectively. As China is going to abandon the two-track standard for natural gas prices and the natural gas price will get a downside adjustment for the first time in 10 years, KUNLUN ENERGY (00135.HK) elevated 1%. ENN ENERGY (02688.HK), BEIJING ENT (00392.HK) and CHINA RES GAS (01193.HK) advanced 8.4%, 2.4% and 5.3% respectively.
AAStocks Financial News
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