By Carrie Chen
HONG KONG (Sep 27) -- Hong Kong shares headed for their biggest gain in more than a week on Wednesday amid buying from mainland Chinese investors, with property developers and some carmakers extending their gains.
The Hang Seng Index had risen 0.4% to 27,635.26 by midday, while a Hang Seng gauge of large Chinese companies listed in the city rose 0.6%. More than HK$46 billion ($5.9 billion) of shares changed hands on the exchange's main board, helped by net purchases by mainland investors over the trading links with Shanghai and Shenzhen stock exchanges.
China Overseas Land & Investment gained 0.6%, China Evergrande Group climbed 4.4%, and China South City Holdings soared 17%, ranking among the day's most actively traded stocks, as developers extended Tuesday's gains. Hybrid- and electric-vehicle maker BYD rallied 5.4%, building on a nearly 12% surge the previous day, amid optimism over prospects for its new products. Geely Automobile Holdings, the Hang Seng Index's best performer this year, advanced 3.6% and on course for a second day of gains.
Heavyweight Tencent Holdings rose 0.7%, poised for its first gain in four days.
"The market is being supported by shares of mainland companies, most of which have stabilized recently," said Alex Wong, director at Ample Finance Group in Hong Kong. "One strong source of support is BYD, which investors are feeling secure about because of its continuous growth."
The Shenzhen Composite Index added 0.6%, while the Shanghai Composite Index was little changed. The yuan traded onshore strengthened 0.1% to 6.63. The Nikkei Asia300 Index of regional companies outside Japan edged 0.1% higher.
The Singapore-listed shares of Mandarin Oriental International, the luxury-hotels group controlled by conglomerate Jardine Matheson Holdings, plunged more than 30% after saying none of the offers it received for the Excelsior hotel in Hong Kong fully met its expectations or transaction requirements. The company said it is continuing to review options, including plans for redevelopment of the property into a commercial building.
Wanda Hotel Development jumped 12%. The Hong Kong-listed unit of Dalian Wanda Commercial Properties said on Tuesday it would buy Wanda Hotel Management from its parent for HK$878 million.
CSSC Offshore & Marine Engineering Group soared 13% after the company announced on Tuesday suspension of its yuan-denominated shares in Shanghai. The company said it has been notified by controlling shareholder China State Shipbuilding Corp. that the group is considering "a significant transaction" that may involve CSSC Offshore.
Apple suppliers climbed after the iPhone maker added 1.7% overnight in the U.S. to halt a four-day losing streak. Acoustic components maker AAC Technologies Holdings jumped 5.1% and Sunny Optical Technology Group gained 4.4%.
China Communications Construction added 1.8% on plans to issue convertible bonds worth up to 20 billion yuan ($3 billion) to finance various projects and equipment purchases.
China Railway Group gained 1.4% after saying it had recently won orders worth 64.3 billion yuan.
- By Carrie Chen; firstname.lastname@example.org; +852 3960 5102
- Edited By Vipin Nair
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