April 3, 2017 / 8:31 AM / a year ago

Hong Kong stocks, led by infrastructure plays, rise on China economic zone plan

HONG KONG, April 3 (Reuters) - Hong Kong stocks rose on Monday, with infrastructure-related stocks surging on news that Beijing plans to set up a special economic zone in the heavily polluted province of Hebei.

Mainland markets were closed for a holiday.

The benchmark Hang Seng index, which fell on Thursday and Friday, gained 0.6 percent to 24,261.48, while the Hong Kong China Enterprises Index edged up 0.4 percent, to 10,314.52.

Shares of China building materials maker BBMG surged as much as 46 percent to their highest since May 2015, making it the top performer in Hong Kong.

Energy solution provider LT Smart Energy soared as much as 70 percent to its highest since April 2015.

China will establish a special economic zone in Hebei province in order to promote integration with the neighbouring cities of Beijing and Tianjin, the government announced on Saturday.

China VAST Industrial Urban Development and Tianjin Port jumped 20 percent.

Brokers said investors were re-balancing portfolios on the second quarter’s first day of trade with focus on infrastructure plays in hopes of more favourable policy from Beijing.

Kulun Energy rose 5.6 percent to its highest since July 2015, while China Shenhua rose 1.8 percent.

Mainland and Hong Kong markets will be closed on Tuesday for a holiday. Both will reopen on Wednesday. (Reporting by Donny Kwok; Editing by Richard Borsuk)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below