Hong Kong stocks on the rise again
Hong Kong stocks rose for a second day yesterday, with banks leading gains as lower borrowing costs boosted optimism that the credit crisis is subsiding.
Hang Seng Bank Ltd, a unit of HSBC Holdings, advanced 7.2 percent after Hong Kong’s three-month interbank offered rate, or Hibor, dropped to its lowest in almost seven weeks. Sino Land Co, a Hong Kong-based developer, climbed 4.3 percent.
“Lower Hibor is easing the situation a bit,” said Alex Wong, asset management director of Ample Capital in Hong Kong. “The credit crisis, though not over yet, isn’t likely to turn much worse from where we are now.”
The Hang Seng Index added 39.97, or 0.3 percent, to close at 14,384.34, after falling as much as 3.4 percent.
The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese mainland companies, climbed 0.8 percent to 6,860.88. The Hang Seng Index has jumped 31 percent since October 27, its worst close since May 2004.