(Corrects to HK stocks on track for fourth-straight gain, not
* HSI +1.1 pct, H-shares +2.0 pct, CSI300 +0.6 pct
* HSI eyes 5th daily gain, chart resistance could end streak
* Lee & Man Paper jumps, sector consolidation to help
* Sinoma, China National Materials rise after Hazemag deal
By Clement Tan
HONG KONG, Sept 3 Hong Kong shares appeared on
track for a fourth-straight daily gain, as Chinese cyclical
counters rose again on Tuesday after favourable China economic
data, helping benchmark indexes test chart resistance at August
Official data in the morning showed growth in China's
services sector stayed steady in August, adding to signs that
government measures have started to boost the world's
Mainland China markets were also firmer, but stayed in the
same range for a fifth session. The CSI300 was up 0.6
percent at the midday trading break and the Shanghai Composite
Index ahead 0.5 percent.
The Hang Seng Index climbed 1.1 percent to 22,410.3
points. The China Enterprises Index of the top Chinese
listings in Hong Kong gained 2 percent.
Turnover was modest. Both Hong Kong indexes have mostly
clawed back a 4.5 percent drop from August highs to lows. If
gains hold for the day, the H-share index will close at its
highest since late May.
"If the Hong Kong indexes break significantly above these
August highs, it could lead to more gains for cyclicals. But
with U.S. jobs data due at the end of this week, I don't think
there's going to be much conviction," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
"It's not a question of whether the U.S. Federal Reserve
will cut quantitative easing, it's a matter of how much and the
pace of their reduction," Wong said. "China and Hong Kong may
have been comparatively less affected in emerging Asia, but
nobody quite knows how much more money could still exit."
The Chinese banking sector led gains on benchmark indexes
with mid-sized lenders seeing bigger percentage rises. In Hong
Kong, China Construction Bank rose 2.1 percent. China
Merchant Bank soared 4.6 percent, but gains came in
elevated short-selling interest, accounting for 17 percent of
its total turnover at midday.
Zoomlion Heavy Industry shares jumped
4.6 percent in Hong Kong and have now surged nearly 10 percent
in three days after closing at a three-week low last Thursday.
Its Shenzhen listing shed 0.8 percent.
Chinese railway stocks were also stronger, with China
Railway Group and China Railway
Construction each up about 4 percent in
China National Materials shares in Hong Kong
surged 6.8 percent after it said its Shanghai-listed unit Sinoma
International Engineering bought a majority stake in
German mining equipment firm Hazemag & EPR for 104 million euros
Chinese paper maker Lee & Man Paper jumped 8.6
percent on hopes it will benefit from sector consolidation. The
official China Securities Journal reported on Tuesday that the
country's industry ministry released a second list of 67
companies, mostly paper makers, under its plan to eliminate
(Editing by Richard Borsuk)