Hong Kong stocks rose, with a gauge of Chinese companies extending the biggest weekly gain since May, after mainland economic growth met analysts’ estimates.
Angang Steel Co. (347), the largest steelmaker traded in Hong Kong, jumped 8.2 percent after saying it swung to a first-half profit. BYD Co., a maker of electric vehicles, surged 11 percent after China’s car sales rose and the nation said it aims to accelerate energy-saving measures. Tencent Holdings Ltd. (700), China’s No. 1 Internet company, gained 3.7 percent after the State Council said upgrading communications was a priority.
The Hang Seng China Enterprises Index, also known as the H-share index, climbed 0.1 percent to 9,445.56 at the close in Hong Kong. The gauge last week surged the most in two months. The Hang Seng Index increased 0.1 percent to 21,303.31, with almost an equal number of shares declining as advancing, with volume 46 percent lower than the 30-day average.
“It’s difficult to see a significant rebound in GDP growth in the foreseeable future,” said David Gaud, a senior money manager at the asset-management unit of Edmond de Rothschild Group in Hong Kong. “If we are to find a floor around 7.4 percent to 7.5 percent, that should be taken relatively positively. For H-shares, the market will definitely react positively because earnings momentum is the ultimate driver.”
China’s economy grew 7.5 percent in the second quarter from a year earlier, the National Bureau of Statistics said in Beijing today, meeting the estimate in a Bloomberg News survey. Growth in the prior quarter was 7.7 percent. Industrial production (CHVAIOY) slowed, rising 8.9 percent in June from a year earlier, as retail sales gained 13.3 percent. READ FULL ARTICLE AT BLOOMBERG.COM