Stocks in Hong Kong and mainland China headed for May gains, with the Hang Seng Index poised for its steepest monthly rally since September, amid optimism that stimulus will lessen an economic slowdown.
The benchmark measure of Hong Kong stocks added 0.2 percent to 23,062.25 at the midday-break in the city, set for a 4.2 percent jump in May. The Hang Seng China Enterprises Index of mainland companies rose 0.5 percent, extending its monthly advance to 4.7 percent. On the mainland, the Shanghai Composite was little changed at 2,040.64 today and is 0.7 percent higher on the month.
The Hang Seng Index is less than 2 percent away from erasing this year’s losses as China enacts measures to revive the economy without repeating the mistakes of its $586 billion stimulus begun in 2008. The so-called mini-stimulus may be followed by more significant easing in coming weeks, such as “targeted” interest-rate or reserve-ratio reductions, Barclays Plc said in a note yesterday.
Among shares that moved today, Sinotrans Ltd., a logistics services company, surged 7.6 percent in Hong Kong after it was rated outperform by Standard Chartered Plc. In Shanghai, Xinjiang Ba Yi Iron & Steel Co. and Xinjiang Tianfu Thermoelectric Co. jumped 10 percent after President Xi Jinping pledged to promote the development of the northwest province. Wuhan Guide Infrared Co. advanced 4.4 percent in Shenzhen after the Xinhua News Agency said the nation will open the defense industry to private investors.
Copy Source: Bloomberg