Posted on 08/27/2007 12:53:41 AM PDT by bruinbirdman
HONG KONG - Hong Kong shares were higher in early trade Monday on expectations of inflows from Chinese investors after the mainland government allowed them to invest abroad.
'The market has a lot of momentum to move up. Fund inflows from China will provide support,' Sun Hung Kai Financial strategist Castor Pang said.
Pang is predicting that the index will gain 500 points this morning.
At 10:26 am, the Hang Seng Index was up 416.76 points or 1.8 percent at 23,339.18, off a high of 23,367.70.
The China Enterprise Index, which tracks the performance of 41 mainland companies listed in Hong Kong, rose 474.34 points to 13,651.76. The finance index climbed 483.80 points to 35,896.50.
The Hang Seng index rose 12.4 percent last week, its biggest one-week gain since October 1998, after the mainland government said it will allow individual investors to invest in markets abroad, including Hong Kong, on a trial basis.
This has raised expectations that some of China's 1.33 trillion US dollars-worth of foreign currency reserves will flow into the Hong Kong market, where shares of mainland companies have been trading at prices lower than in Shanghai.
'We will likely set records today,' said Francis Lun, general manager at Fulbright Securities, who expects the Hang Seng Index to touch 23,600 points during the session.
China's robust economy, which rose at its fastest pace in 12 years in the second quarter, is expected to fuel more buying interest on Chinese stocks such as China Mobile and bank shares, Sun Hung Kai Financial's Pang said.
China's gross domestic product expanded 11.9 percent in the second quarter from a year earlier and Standard Chartered Bank is expecting full-year growth of 11.25 percent. The Chinese economy grew 11.2 percent in 2006.
~snip~
ACH (a chinese mining compnay) a company which increased about 30% last week, went up 35% last night in hong kong.....
The beauty of the chicom economy is that their economy performs as well as the figures that they publish. They can pull them out of air and used manufactured stats to “prove” these figures. It will catch up to them one day.
LLS
I made about 70% in a China-stock mutual fund last year and in the early part of 2007. I sold it in June. It has since gone up another 15% or so, but when it falls, it'll fall hard.
And their contracts are no better.
yitbos
That is what I have heard.
LLS
Not being a civilized nation with the rule of law, the ChiComs think nothing of legislating anything they like "ex post facto". Oh, ChiComs don't like a contract? Pass a law making it illegal.
yitbos
You forgot, “Kill the contract writer”.
LLS
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