September 26, 2018 / 8:46 AM / 20 days ago

Hong Kong shares follow region higher on receding trade war fears, high oil prices

* Hang Seng gains 1.2 percent

* China Enterprises index ends 1.5 pct higher

* High oil prices boost energy firms

Sept 26 (Reuters) - Shares in Hong Kong closed higher on Wednesday, with trade war fears taking a back seat to rising hopes that the expanded index inclusion of A-shares could lift the broader market, and as high oil prices boosted energy firms.

** The Hang Seng index rose +1.2 percent, to 27,816.87, while the China Enterprises Index gained +1.5 percent, to 10,985.60 points. ** China shares rose as global index provider MSCI said it will consider quadrupling the weighting of Chinese big-caps in its global benchmarks and as FTSE Russell is expected to include Chinese shares in its benchmark this week. ** Shares in Hong Kong-listed China High Speed Transmission Equipment Group Co Ltd plunged 10.4 percent after the parent of Neoglory Prosperity Inc, which plans to buy a 51-74 percent stake in the company, defaulted on bond payments. ** Chinese hotpot chain Haidilao’s shares jumped as much as 10 percent on debut in Hong Kong on Wednesday, giving it a valuation of about $13 billion and becoming the second major listing in a week to make a strong start in the financial hub. ** The sub-index of the Hang Seng tracking energy shares rose 3.3 percent, while the IT sector rose 0.67 percent, the financial sector was 1.26 percent higher and property sector rose 0.79 percent. ** Energy firms were helped by high oil prices, with Brent crude trading around its highest in nearly four years on Wednesday. ** The top gainer on Hang Seng was PetroChina Co Ltd, up 4.85 percent, while the biggest loser was Country Garden Holdings Co Ltd, which was down 2.03 percent. ** China’s main Shanghai Composite index closed up 0.92 percent at 2,781.14 points, while its blue-chip CSI300 index ended up 1.11 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.23 percent, while Japan’s Nikkei index closed up 0.39 percent. ** The yuan was quoted at 6.8738 per U.S. dollar at 08:19 GMT, 0.19 percent weaker than the previous close of 6.861. ** As of the previous trading session, the Hang Seng index was down 8.09 percent this year, while China’s H-share index was down 7.5 percent. As of the previous close, the Hang Seng has declined 1.4 percent this month. ** The top gainers among H-shares were PetroChina Co Ltd up 4.85 percent, followed by CNOOC Ltd, gaining 4.5 percent and China Pacific Insurance Group Co Ltd , up by 3.29 percent. ** The three biggest H-shares percentage decliners were Great Wall Motor Co Ltd, which was down 3.24 percent, Dongfeng Motor Group Co Ltd, which fell 2.8 percent and China Vanke Co Ltd, down by 2.0 percent. ** About 2.41 billion Hang Seng index shares were traded, roughly 134.4 percent of the market’s 30-day moving average of 1.79 billion shares a day. ** At close, China’s A-shares were trading at a premium of 19.77 percent over the Hong Kong-listed H-shares. ** The price-to-earnings ratio of the Hang Seng index was 10.56 as of the last full trading day while the dividend yield was 3.4 percent. ** So far this week, the market capitalisation of the Hang Seng index has fallen by 1.70 percent to HK$17.91 trillion. ** The short and one-factor leveraged Hang Seng index, which is designed to replicate the payoff of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, was lower by 1.11 percent on the day at 5,034.17 points. (Reporting by Andrew Galbraith; Editing by Sunil Nair)

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