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China blue-chips hit 2-yr high, Hong Kong at decade-peak on global optimism
November 7, 2017 / 5:02 AM / a month ago

China blue-chips hit 2-yr high, Hong Kong at decade-peak on global optimism

* SSEC +0.6 pct, CSI300 +0.6 pct, HSI +1.2 pct

* China A-share index may post “double-digit” gain next year -CICC

* Energy shares jump on higher oil prices

SHANGHAI, Nov 7 (Reuters) - Shares in China and Hong Kong on Tuesday joined the global optimism that pushed Wall Street to another record overnight and Asian stocks to their highest level in 10 years.

Monday’s market anxiety stemming from Saudi Arabia’s anti-corruption campaign evaporated, strengthening belief that the bull run in China and Hong Kong is likely sustainable.

China’s blue-chip CSI300 index rose 0.6 percent, to 4,046.33 points at the end of the morning session, hitting the highest level since August 2015. The Shanghai Composite Index also gained 0.6 percent, to 3,407.83 points.

Despite growing concern that China’s economic growth will slow, some brokerages started to paint a rosy picture for its A-share market in 2018.

In its annual strategy report, investment bank China International Capital Corp (CICC) forecast a “double-digit” gain in China’s A-share index by the end of next year.

“Sustained economic growth, and a drop in systemic risks would make China a hotbed for long-term investment in 2018,” CICC strategist Wang Hanfeng wrote, adding that he expects blue-chip shares to rise further.

Most main sectors rose on Tuesday , with banking and resources among the biggest gainers.

An index tracking energy shares jumped 1.8 percent on higher oil prices triggered by political uncertainty stemming from the corruption crackdown in key producer Saudi Arabia.

Shares in elevator maker SJEC Corp, the back-door listing vehicle of anti-virus software Qihoo 360, surged the maximum allowed 10 percent to a six-month high, as trading resumed on Tuesday following a five-month halt.

HONG KONG

Shares in Hong Kong rose sharply.

Both the Hang Seng index and the Hong Kong China Enterprises Index gained 1.2 percent, to 28,943.64 points and 11,663.07, respectively.

The HSI’s rise took it to the highest point since December 2007.

Reporting by Samuel Shen and John Ruwitch; Editing by Richard Borsuk

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