Hong Kong stocks edge up in choppy trade as A-shares gain

HONG KONG (Nikkei Markets) — Hong Kong shares edged higher after a choppy morning session on Monday, helped by gains for some financial heavyweights and companies seen as defensive bets.

The Hang Seng Index added 0.3% to 25,681.27 after changing direction at least three times. Pan-Asia life insurer AIA Group and London-headquartered lender HSBC Holdings added 2% and 1.1%, respectively. Telecommunications major China Mobile gained 1.7%, while utilities CLP Holdings and Hong Kong & China Gas climbed 1.1% and 1.2%, respectively.

Chinese banks were mixed as investors considered state media reports citing mainland regulators as saying that a push to boost private sector lending will not involve setting specific targets for each bank and will not supersede appropriate due diligence. Lenders had dropped late last week after China Banking & Insurance Regulatory Commission Chairman Guo Shuqing called for an increase in credit support for the private sector. China Construction Bank and Bank of Communications each gave up 0.8%, while Bank of China added 0.3%.

The clarification “has eased investor worries over the new policy,” said Jackson Wong, analyst at Huarong International Securities in Hong Kong. “Rising A-share markets have added to investor confidence into the Hong Kong market.”

In the mainland, the Shanghai Composite climbed 0.7%, while its Shenzhen counterpart rose 1.6% after posting four or more consecutive declines.

The market focus this week will be on results for Tencent Holdings and a meeting between U.S. Vice President Mike Pence and Chinese Premier Li Keqiang this week, Wong said. Pence and Li will be attending an ASEAN summit in Singapore this week, for signs of any progress in resolving Sino-American trade relations.

Tencent, which is scheduled to report third-quarter results on Wednesday, was down 1.9% in Hong Kong.

Dongfeng Motor Group fell 2.5% after reporting a 4.8% decline in October sales volume.

I-Cable Communications plunged 28.1% to 12.6 Hong Kong cents after proposing a rights issue of between 6.21 billion and 6.35 billion shares at subscription price of 10.9 Hong Kong cents each on a one-for-one basis.

China State Construction International Holdings added 1.8% after saying new contracts for the January-October period rose 11.2% from a year ago.

Yuzhou Properties added 1.4% after reporting a 78.5% increase jump in October sales.

A-Living Services slumped 10.7%. The property management services provider on Friday said Liu Deming resigned as chief executive officer and that co-chairman Huang Fengchao will perform duties of CEO.

Oriental Watch Holdings climbed 3.5% after saying it expects profit for the six months ended Sept. 30 to be higher than the year-ago period.

Skyworth Digital Holdings fell 1.1% despite saying it expects to swing to a net profit for the six months ended Sept. 30, compared to a loss in the year-ago period.

Tianneng Power International rose 4.3% after saying its board is mulling the feasibility of a proposed spinoff and listing of its unit Tianneng Battery Group in China.

— Carrie Chen