Strong Exports Push China Stocks Near 22-month High

Gene Linn |

Good news from China Thursday led blue chip stocks in Hong Kong to near a 22-month high.

This time a strong rebound in December exports lifted China stocks. Encouraging economic news from China – especially falling inflation and rebounding economic growth – have been a mainstay of a robust rally the last four months.

On Thursday the Hang Seng Index rose 0.6% to 23,354 in strong turnover, within shouting distance of the 22-month high of 23,399 set a week ago. The index of Chinese companies increased 1.0% to 11,931.

The market has slid sideways since hitting a peak last Thursday, but recent impressive gains by big-cap stocks shows there’s still plenty of upward momentum, said Peter So, managing director and co-head of research at CCB International. He told Equities he thinks the Hang Seng will reach the next resistance level of 23,700 this month.

Financial stocks and properties are leading the way, according to So. “Concept” plays like cement makers and infrastructure companies are also hot. So likes property firm Hopson (754, HK) and cement producer CNBM (CBUMY). End

DAILY FIX

Hong Kong Blue Chips: +136, +0.6%, to 23,354, 1-10-13, Hang Seng Index

Chinese Stocks in Hong Kong: +114, +1.0%, to 11,931, 1-10-13, HSCE Index

Shanghai Stocks: +8, +0.4% to 2,284, 1-10-13, Shanghai Composite Index.

Chinese Stocks in the U.S.: +4.2, 406.2, 1-9-13, Bank of New York Mellon, ADR Index-China

Insight: Hong Kong blue chips opened 21 points higher and expanded gains when Chinese December export figures came out higher than expected. Good export numbers buoyed shipping plays: China Shipping (CSDXY) +6%. Research

Quotable: "We see limited upside for the benchmark index and expect fundamentally sound second-liners to outperform the market in near term." Guoco Capital. 1-10-13

Chinese Company to Watch: Lai Sun Development (488, HK) "Traded at 59% discount to NAV with a low debt to-equity ratio of 7% as at 31 July 2012, LSD is undervalued compared to peers." Guoco Capital. 1-10-13

Brokerages and analysts cited here have disclaimers on their websites emphasizing their statements are for information only. They do not endorse my blog, and I don’t endorse them.

For a list of Chinese companies sold in the U.S. and information on each company go to http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
LITB LightInTheBox Holding Co. Ltd. American Depositary 2.60 -0.02 -0.76 6,828

Comments

Emerging Growth

IGEN Networks Corp.

iGen Networks Corp is engaged in investing in and managing for growth private high-tech companies that offer products and services in the domains of wireless broadband, software as a service,…

Private Markets

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…

Cloudera

Cloudera offers enterprises a new data platform built on the Apache Hadoop open-source software package. Hadoop is a data-management platform that can consolidate data in a single repository for comprehensive…