Hong Kong - Hong Kong
stocks rose, extending their best weekly gain since September, as China
Shenhua Energy jumped after announcing a special dividend.
The Hang Seng
Index added 0.8% to 24 501.99, its highest close since August
2015. Shenhua posted its biggest gain since 2008. China Mobile and
Tencent, which are both scheduled to report earnings this
week, rose at least 2.7%. The Shanghai Composite Index advanced
0.4% at the close, after falling on Friday by the most this year.
Hong Kong is entering its peak season for
earnings releases, with more than 275 companies announcing their
financial results this week, including heavyweights Tencent and Cnooc.
The Hang Seng Index climbed 3.2% last week, boosted by
global optimism over a dovish Federal Reserve. Mainland investors bought
a net 13 billion yuan of Hong Kong stocks last week
through exchange links, the most this year. Their net purchases totaled
3.73 billion yuan on Monday.
"The market is chasing companies with high cash levels that may
announce dividend payouts,” said
Linus Yip, a strategist at First Shanghai Securities in Hong Kong.
Southbound flows through the stock links are likely to continue amid
concerns about yuan depreciation after the Fed raised interest rates, he
The Hang Seng China Enterprises Index advanced 0.7% to its
highest closing level since November 2015, as automakers and insurers
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