China, Hong Kong shares up on hopes of state company reforms

martes 28 de octubre de 2014 00:56 GYT
 

* HSI +0.6 pct, H-shares +1.1 pct, CSI300 +1.1 pct

* China CNR and CSR Corp's merge plan sparks hopes of SOE reforms

* China port shares up due to approval of Tianjin FTZ project

By Chen Yixin and Kazunori Takada

SHANGHAI, Oct 28 (Reuters) - China and Hong Kong shares rebounded on Tuesday, breaking a multi-day string of declines, on hopes of more reforms to state-owned enterprises (SOEs), analysts said.

The Shanghai Composite Index rose 1.2 percent to 2,317.6 points by the midday break after falling for five trading days, while the CSI300 of the leading Shanghai and Shenzhen A-share listings gained 1.1 percent.

In Hong Kong, the Hang Seng Index edged up 0.6 percent to 23,289.01 points. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 1.1 percent.

Hope of more reforms to SOEs were fuelled by reports in state media on Tuesday that China's top train makers, China CNR and CSR Corp , were planning to merge to create a giant able to compete globally.

"An important investment justification behind the performance of the A-shares and the Hong Kong market is the news about SOE reform," said Shi Wenbien, stock strategist at Yunta Securities in Shanghai.   Continuación...