August 8, 2017 / 8:25 AM / 10 months ago

Hong Kong shares buoyed by strong earnings, shrug off weak China trade data

SHANGHAI, Aug 8 (Reuters) - Hong Kong shares rose on Tuesday as strong company earnings and surging prices for steel and other building materials convinced investors that China’s economy remains solid despite weaker-than-expected trade data.

The Hang Seng index ended up 0.6 percent at 27,854.91 points, while the China Enterprises Index gained 0.2 percent to 11,079.79.

Geely Automobile Holdings Ltd was the biggest winner on Tuesday, closing up 6.0 percent after its sales volumes jumped 88 percent in July.

Tencent Holdings Co Ltd extended recent gains, closing up 2.5 percent at HK$328.60, the second day in a row its shares have closed at a record high. The company plans to release second-quarter results on Aug. 16.

“The market is focused on those (companies) which haven’t given out the results reports, like Tencent and some Chinese banking plays, and also some Chinese insurance plays,” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong.

Disappointing trade data, which showed that China’s import and export growth slowed more than expected in July, had little impact on markets, with many investors opting to treat the weakness as a seasonal or one-off blip rather than a portent of softer domestic and global demand.

“Overall, the market still has the outlook that the macroeconomy in China is still well maintained,” said Yip.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 126.35.

A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa. (Reporting by Andrew Galbraith; Editing by Kim Coghill)

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