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Thursday, August 11, 2016, 16:59

Shares rise, helped by financials

By Reuters

SHANGHAI - Hong Kong shares climbed to an eight-month closing high on Thursday, as a further decline in global bond yields increased the appeal of blue-chips listed in the city.

The Hang Seng Index rose 0.4 percent, to 22,580.55, while the China Enterprises Index gained 1.2 percent, to 9,423.34 points.

With the UK's bond buying scheme helping to push global bond yields lower, Hong Kong's blue-chips - currently trading at half the valuation of US shares on average - are becoming more attractive to yield-hungry investors, traders said.

The financial sector rose over 1 percent, as insurers jumped on news that Chinese billionaire Guo Guangchang has acquired a combined 5.01 percent stake in New China Life Insurance through five companies he controlled.

Chinese brokerages listed in Hong Kong, including Haitong International Securities and Guotai Junan International Holdings also jumped, as investors bet they will benefit from the Shenzhen-Hong Kong Stock Connect scheme, which is widely expected to be launched soon.

Shares of Li Ning Co Ltd jumped 6.3 percent to their highest close in seven months, after first half profit showed the Chinese sportswear maker maintaining momentum in its recovery.

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