Insurer AIA and tech giants lead Hong Kong shares up
** "Any appropriate relaxation in the funding restrictions for the developers will help support China growth momentum in Q4," said Ken Cheung, Chief Asian FX Strategist at Mizuho Bank. ** Country Garden Services Holdings slumped 5.8%, the biggest percentage decliner on the Hang Seng Index, and the Hang Seng Mainland Properties Index lost 3.5%.
Hong Kong shares finished up on Monday driven up by insurer AIA and tech giants. AIA jumped most in six weeks after its new business value rebounded from a pandemic slump. The Hang Seng index rose 0.3%, to 25,390.91, while the China Enterprises Index lost 0.3%, to 9,085.60 points.
** Asia-focused insurer AIA Group Ltd climbed 2.3%, after it posted a 2% rise in its Q3 value of new business (VONB) at constant exchange rate (CER) as it continues to recover from the pandemic-led disruption to business in most of its main markets. ** The index heavyweight insurer pushed the Hang Seng Index up 44 points.
** The Hang Seng Tech Index added 0.5%, but shares in the sector were mixed, with Alibaba Group down 0.6% while Tencent Holdings up 1.4%. ** Property investment and sales growth in China continued to slow over January-October compared with the first nine months, and new construction starts measured by floor area fell.
** "The weakness in the land market suggests that funding conditions for developers have not significantly improved and may continue to weigh on new home starts and new home sales," said Nomura in a note. ** "Any appropriate relaxation in the funding restrictions for the developers will help support China growth momentum in Q4," said Ken Cheung, Chief Asian FX Strategist at Mizuho Bank.
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