Home > HK
Tuesday, October 4, 2016, 16:39

Stocks rise, Evergrande surges on backdoor listing plan

By Reuters

Hong Kong stocks posted modest gains on Tuesday led by consumer staples and a rally in developer China Evergrande, but gains were capped by concerns that more cities in China may take steps to cool surging property prices.

The benchmark Hang Seng Index ended up 0.5 percent at 23,689.44 points, while the China Enterprises Index gained 0.8 percent at 9,756.77.

China Evergrande surged 12 percent at one point after it said it planned to inject almost all of its property assets into a Shenzhen-listed firm, orchestrating a backdoor listing in the mainland. The stock ended 8.2 percent.

But fears of more restrictions on home purchases in China triggered selling in the broader property sector.

Shares of China Resources Land slid 2.1 percent and China Overseas Land fell 1.6 percent. Both fell to their lowest close since Aug. 25.

Four Chinese cities have announced news restrictions on property purchases in recent days as local governments try to cool soaring home prices stoked by speculators in second- and third-tier cities.

Snack food maker Want Want China and exporter Li & Fung rose more than 2 percent.

Latest News