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10 months ago
Hong Kong, China stocks up as energy shares jump on higher oil prices
September 29, 2016 / 4:56 AM / 10 months ago

Hong Kong, China stocks up as energy shares jump on higher oil prices

3 Min Read

* SSEC 0.6 pct, CSI300 0.7 pct, HSI 0.5 pct

* Energy stocks jump on higher oil prices after surprise OPEC deal

* Hong Kong sentiment aided by progress in Shenzhen Connect

SHANGHAI, Sept 29 (Reuters) - Hong Kong and China shares rose on Thursday, with sentiment lifted by a jump in energy stocks as oil prices surged after OPEC members agreed to curb output in a surprise deal.

Hong Kong's benchmark Hang Seng index added 0.5 percent to 23,731.97 points by lunch break, while the Hong Kong China Enterprises Index gained 0.9 percent to 9,809.71.

An index tracking Hong Kong's energy sector jumped 5 percent, as Chinese oil giants CNOOC, PetroChina and Sinopec Corp rose sharply.

Oil prices extended gains after rising nearly 6 percent on Wednesday after OPEC struck a deal to limit crude output, the organization's first agreement to cut production since 2008.

Sentiment was also aided by concrete progress toward the launch of Shenzhen-Hong Kong Stock Connect, an eagerly-anticipated cross-border scheme that will channel more mainland Chinese money into Hong Kong's stock market.

The Stock Exchange of Hong Kong Ltd published on its website late Wednesday further information on the Shenzhen Connect to facilitate business and technical preparation.

All the main sectors in Hong Kong, except for property , ended the morning session in positive territory.

In China, the blue-chip CSI300 index rose 0.7 percent, to 3,252.10 points, while the Shanghai Composite Index gained 0.6 percent, to 3,004.64 points.

All the main sectors rose in China, with coal miners rising sharply, as investors bet higher oil prices would lead to higher consumption of coal.

Trading was thin as investors are reluctant to make fresh bets ahead of the week-long National Day holiday that starts on Oct. 1.

"The market is still in a range-bound trading pattern, and I don't see a clear trend forming in either direction," said David Dai, Shanghai-based investor director at Nanhai Fund Management Co.

"History data tells us that China's market is likely to rise after a long holiday, so we've decided to hold our positions."

Dai's view reflects investors' lingering concerns over China's economic health.

A private survey showed that China's economy was less healthy in the third quarter than a recent spate of upbeat data had suggested, with growth coming exclusively from manufacturing and property while the services and retail sectors faltered.

Reporting by Samuel Shen; Editing by Simon Cameron-Moore

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