Monday, February 14, 2011

CHINA: Hong Kong Stocks Gain Most in One Week; Auto, Cement Makers Rise



Hong Kong stocks rose, lifting the benchmark index to its biggest gain in more than a week, on speculation inflation will slow in China, easing the need for further monetary-policy tightening.

China Resources Land Ltd., a state-controlled developer, advanced 3.5 percent after Credit Suisse Group AG raised its rating on the stock to “neutral.” Anhui Conch Cement Co., China’s biggest cement maker, rallied 8.6 percent after the Shanghai Securities News said demand for the building material will increase. Great Wall Motor Co., a Chinese automaker, surged 6.1 percent after saying it expects higher profit.

“It’s likely that inflation has eased,” said Kenny Tang, executive director at Redford Asset Management Ltd. “Policy uncertainties in the market are also easing.”

The Hang Seng Index climbed 1.3 percent to close at 23,121.06, its biggest advance since Feb. 2. The Hang Seng China Enterprises Index of so-called H shares of Chinese companies rose 2.6 percent to 12,398.05.

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