* HSI +2.1 pct, H-shares +3.6 pct, CSI300 +3.2 pct
* Hong Kong midday turnover almost tops Monday’s full-day
total
* Railway, construction spikes on reported govt investment
* ZTE surges after H1 profit forecast, share options plan
By Clement Tan
July 23 (Reuters) – Hong Kong and China shares led gains in
Asia on Tuesday, lifted by local media reports seen as
clarifying official tolerance for slowing growth, with mainland
markets further buoyed by a reported delay in resuming new
A-share listings.
Railway and construction material counters jumped as
volumes spiked after the official Shanghai Securities News said
Beijing may use investments in high-speed railways to help
reduce overcapacity in sectors such as cement and steel.
At midday, the Hang Seng Index climbed 2.1 percent to
21,854.7 points. The China Enterprises Index of the top
Chinese listings in Hong Kong soared 3.6 percent to hit its
highest since June 17.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings jumped 3.2 percent, while the Shanghai
Composite Index rose 2.2 percent as volumes at midday
were the highest in about two months.
Hong Kong’s midday turnover was $4.5 billion, just shy of
Monday’s $5 billion full-day total, which was the weakest in
2013.
“Much of the gains in Hong Kong today seem to be on short
covering,” said Kelvin Wong, Julius Baer’s Hong Kong and China
equity analyst.
He added that a media report quoting Premier Li Keqiang as
saying China wouldn’t let growth sink below 7 percent, if
accurate, “puts a floor on the limit of the economic slowdown”.
However, media reports also indicate there won’t be a
large-scale stimulus or a big shift in policy, Wong said.
A Shanghai Securities News report on Tuesday suggested new
initial public listings in the mainland may be further delayed
if applicants have to refile corporate financial filings, which
have a six-month validity window.
China Railway Construction surged 6.1
percent in Hong Kong and 7.2 percent in Shanghai. Short selling
in its H-share listing exceeded 10 percent of its turnover in
the six sessions prior to Tuesday, peaking at 15.2 percent last
Friday.
Shares of Zoomlion Heavy Industries ,
one of China’s largest construction machinery makers, spiked 6.1
percent in Hong Kong and 4.3 percent in Shenzhen. Anhui Conch
Cement , China’s largest cement producer,
rose 2 percent in Hong Kong and 3.2 percent in Shanghai.
CHINA RELIEF
The short squeeze also lifted the Chinese banking sector
after Beijing News reported Li’s comment on 7 percent annual
growth.
Comments from Vice Premier Zhang Gaoli also helped. He
reiterated the country’s commitment to take decisive measures to
support reasonable infrastructure and social welfare investment
to develop the export sector, service industry and small firms.
In Hong Kong, China Construction Bank (CCB) and
Bank of Communication (BoCom) each rose more than 4
percent, while smaller rivals Citic Bank jumped 5.4
percent and China Minsheng Bank 3 percent.
ZTE Corp shares surged 16 percent in
Hong Kong as trading resumed a week after China’s second-largest
telecommunication equipment maker forecast a first-half profit
and after it announced plans to issue share options to staff.
Its Shenzhen listing jumped the maximum 10 percent limit.
