Hong Kong Stocks Rebound on Bets on Rate Cuts, AliBaba Leads Rebound on Investment Inflows through Stock Connect

MT Newswires Live09-12

Hong Kong Stocks bounce back from the one-month low yesterday with Asia-Pacific investors putting their bets on global rate cuts. Ali Baba, JD.com, and Wuxi Bio lead the market with investment funds inflow from mainland China.

Alibaba's shares worth of HK$11.6 billion were bought off by main investors ever since it became a part of the Stock Connect scheme earlier this week.

The Hang Seng Index rose 0.77%, or 131.68 points, to close Thursday's session at 17,240.39. The Hang Seng China Enterprises Index rose by 0.58%, or 34.98 points, to close at 6,017.53.

Hong Kong's total gross value of construction works rose 2.3% to HK$68.3 billion in nominal terms in the second quarter, according to data from the city's census and statistics department released Wednesday.

Construction works at private sites slid 2.4% in nominal terms to HK$21.4 billion during the quarter, while those at public sector sites increased 23% in nominal terms to HK$26.2 billion with the value of works outside of construction sites falling 12% year over year to HK$20.7 billion during the quarter.

The Hong Kong Mortgage Corp. completed the issuance of its second infrastructure loan-backed securities, according to a Wednesday press release by the Hong Kong Monetary Authority. The securities were issued through the Bauhinia ILBS 2 special purpose vehicle, which has 28 project and infrastructure loans across 26 individual projects.

Kazakhstan's conglomerate Freedom Holdings plans to engage Hong Kong market to raise funds for its telecoms unit Freedom Telecom's Kazakh optic-fiber project highlighting the city's growing value as a financial hub.

Cocoon Holdings (HKG:0428) has raised about HK$4.2 million through the placement of 14,158,848 shares. The placement price per share was HK$0.300. The newly placed shares will account for up to 16.67% of the company's enlarged share capital. The investment company's shares were up nearly 5% on Thursday's close.

Wenye Group Holdings (HKG:1802) appointed Beijing Xinghua Dingfeng Certified Public Accountants as their auditors until the next annual general meeting, effective Sept. 11, who will succeed Zhonghui Anda, who resigned. The company's stocks were down over 20% on Thursday's close.

Hing Lee (HK) Holdings (HKG:0396) reported a profit attributable to the owners of about HK$1.1 million for the period ended June 30, compared with HK$766,000 in the previous year, Earnings per share were HK$0.0001, the same EPS as the year ago. Turnover for the period was HK$61.5 million, compared with HK$37 million in the prior year. The company's shares still fell over 4% on Thursday's close.

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