September 27, 2017 / 8:28 AM / a year ago

Resources stocks lead HK market higher on robust China industrial profits

Sept 27 (Reuters) - Hong Kong shares rose on Wednesday, led by resources stocks after upbeat profits for China’s industrial firms underscored the resilience of the world’s second-largest economy.

Investor confidence was also supported by signs of China’s government accelerating the restructuring of its bloated state sector.

The Hang Seng index rose 0.5 percent, to 27,642.43, while the China Enterprises Index gained 0.6 percent, to 11,035.78 points.

Investors cheered data showing annual profit at China’s industrial companies rose 24 percent in August, accelerating from the previous month in an indication economic growth remains healthy despite signs of fading momentum following a robust first half-year.

Meanwhile, CSSC Offshore & Marine Engineering said its controlling shareholder, China State Shipbuilding Corp (CSSC), is planning to restructure assets of the listed unit, sending its Hong Kong-listed shares surging.

Resources firms, the biggest beneficiary from industry consolidation and state reform, rose sharply. An index tracking the sector in Hong Kong rose 1.6 percent. (Reporting by Samuel Shen and John Ruwitch; Editing by Shri Navaratnam)

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