Hong Kong stocks at new high

Hong Kong blue chips and Hong Kong-listed China plays struck record closing highs on Monday, tracking robust regional markets, and lifted by a soaring China Mobile which set an all-time peak.
China Mobile - the world's largest cellular carrier - soared over 6 percent to a record high of HK$80.40 on news it is planning a multibillion-dollar share sale in Shanghai as early as next month to attract domestic investors, sources familiar with the situation said on Monday.
Mainland financial stocks, which had been underplayed before a rally on Friday, climbed further as investors snapped up shares in banks and insurers such as China Construction Bank and Ping An.
"Chinese financial stocks will be higher at least until the end of the month because they have lagged so far behind the market," said Conita Hung, director, Delta Asia Financial Group. The benchmark Hang Seng Index rose 2.69 percent to a record close of 21,582.89. It had reached an intraday high of 21,585.03.
"Profit taking at this level is very normal and healthy," said Dale Tsang, managing director, securities trading division, Polaris Capital (Asia) Limited. Mainboard turnover hit a record at HK$100 billion (US $12.8 billion), up from Friday's HK$84 billion. "I think 21,500 will be the resistance level but that depends on whether the US continues to reach highs," Hung said.
The China Enterprises Index of mainland-registered companies listed in Hong Kong ended up 3.69 percent at 11,866.71, having hit an intraday high of 11,944.30. Hong Kong Exchanges and Clearing - the city's bourse operator - rose 4.3 percent to HK$99.00, having earlier reached a record high of HK$99.45.
The gains followed media reports last week quoting local brokerages as saying mainland Chinese were opening brokerage accounts in Hong Kong, circumventing China's capital controls.
Among mainland financial plays, China Construction Bank surged 6.9 percent to HK$5.25, while ICBC rose 4.5 percent to HK$4.44. China Life Insurance gained 4.7 percent to HK$26.95, and smaller rival Ping An soared 7.4 percent to HK$52.20, easing from a high of HK$54.15. Energy plays climbed after crude prices, which hit a 10-month high on Friday, advanced. CNOOC gained 5.1 percent to HK$8.89, having eased from a life high of HK$8.92.
Other gainers included Shenhua Energy Co Ltd, which jumped 4.5 percent to HK$27.60 after scaling an all-time high of HK$28.75. China Coal ended up 2.2 percent at HK$12.20. It reached an intraday life high of HK$12.88.
Datang Power hit a life high of HK$11.84 before ending up 4.08 percent at HK$11.22. Analysts said bargain hunters also bought PC maker Lenovo Group - up 1.5 percent at HK$4.87 - due to its low price compared to its competitors listed overseas. Citigroup, which maintains a "buy" rating on Lenovo, raised its FY09 EPS by 8 percent, raised its target price from HK$4.80 to HK6.00, in expectation of upbeat comments for FY08.
Hunan Non-ferrous Metals Co Ltd, China's largest zinc producer by output, soared nearly 11 percent to HK$5.16 after Goldman Sachs upgraded the stock to buy from neutral amid speculation of asset injections as China steps up industry consolidation efforts.
Retail-focused trading firm Li & Fung jumped nearly 7 percent to HK$27.90 after tame US consumer price data eased inflation fears in Asia's top export market. Telecommunications service firm China Communications Services Corp Ltd soared as much as 9.6 percent to a record high of HK$6.30, after it said it would buy telecommunications service assets from controlling shareholder China Telecommunications Corp for 4.63 billion yuan ($607.3 million). The stock eased back to HK$6.12, closing up 6.4 percent.