* China small-cap stocks firm on launch of start-up market
* HK stocks gain on abundant liquidity; CCB, CNOOC rise
(Updates to close)
By Claire Zhang, Edmund Klamann and Donny Kwok
HONG KONG/SHANGHAI, Oct 23 (Reuters) - Stock markets in Hong
Kong and China rose on Friday as hopes for strong Chinese
corporate earnings, riding on a recovery in China's economy,
boosted sentiment.
China's key stock index jumped 1.85 percent on Friday, led by
energy and metals shares on firmer commodity prices, posting a
third straight week of gains as confidence mounted in the
economic recovery.
The Shanghai Composite Index .SSEC ended at 3,107.847
points, its highest close in 10 weeks and marking a 4.4 percent
rise for the week.
Shenzhen-based companies and small-cap shares were firmer,
buoyed by the scheduled launch of ChiNext, China's long-awaited
Nasdaq-style second board for start-ups which is holding an
official launch ceremony on Friday afternoon in Shenzhen and will
start trade in its first 28 stocks on Oct. 30.
The first batch of ChiNext-listed companies drew strong
investor interest in their initial public share offerings and are
expected to reach hefty share valuations in their trading debut.
[ID:nSP470374] [ID:nSHA143174]
Among resource shares, China Shenhua Energy (601088.SS)
climbed 3.22 percent to 36.88 yuan, while Aluminum Corp of China
Ltd (601600.SS) jumped 3.34 percent to 14.83 yuan.
The official Shanghai Securities News reported that after
China's economic growth picked up in the last quarter, as seen in
Thursday's strong GDP data, several fund houses expected earnings
at listed companies to be upbeat in the fourth quarter.
A Ministry of Commerce researcher also said in remarks
published on Friday that China's exports were likely to resume
year-on-year growth this quarter as global trade slowly recovers.
[ID:nPEK290236]
"The index is expected to rise as the economic recovery gains
strength in the fourth quarter, while ChiNext is also boosting
sentiment," said Chen Shaodan, senior analyst at Stockfly
Securities in Beijing.
Gaining Shanghai A shares outnumbered losers by 753 to 134,
while turnover rose to 157 billion yuan ($23 billion) from
Thursday's 119 billion yuan.
The SME Composite Index .SZSME of the Shenzhen Stock
Exchange, which is dominated by shares of small and medium-sized
enterprises, rose 1.28 percent to 4,926.140 points, nearing its
year high of 5,007.040 set in early August.
Newly listed small shares in Shenzhen were active, with
Luolai Home Textile 002293.SZ jumping 5.23 percent to 33.78
yuan, while Shenzhen World Union Properties Consultancy
002285.SZ rose 3.05 percent to 51.39 yuan.
China Construction Bank (601939.SS) gained 2.88 percent to
6.07 yuan ahead of its third-quarter earnings report due for
release after the market close, while Merchants Bank (600036.SS)
rose 4.48 percent to 17.71 yuan.
"The index could rise next week on rosy expectations for
banks' third-quarter earnings," said Wu Nan, an analyst at
Xiangcai Securities in Shanghai.
Analysts said the index appeared likely to hold firm above
3,100 points and extend its gains by at least 100 points.
HONGKONG UP ON ABUNDANT LIQUIDITY
Hong Kong stocks rose 1.71 percent to a 14-month closing high
on Friday as finance shares rebounded and with abundant liquidity
building investor confidence in further gains for the market.
"Although it was ahead of the long weekend, no one wanted to
sell in such a buoyant market, which was still trending up while
sentiment remained positive," said Conita Hung, head of equity
research of Delta Asia Financial.
Hong Kong markets will be closed on Monday for the Chung
Yeung Festival.
The benchmark Hang Seng Index .HSI rose 379.21 points to
end at 22,589.73, its highest close since Aug 1, 2008. The index
rose 3 percent for the week, its third consecutive week of gains.
The China Enterprises Index .HSCE of top locally listed
mainland Chinese stocks was up 2.75 percent at 13,316.02, its
highest close since June 6, 2008. Turnover rose to about HK$76
billion ($9.8 billion), from Thursday's HK$69.95 billion.
"Anticipation of strong quarterly earnings from Chinese
enterprises and ample liquidity aided investors building up
confidence for further upside," Hung said.
China's largest lender ICBC (1398.HK) rose 2.84 percent to
HK$6.51, its highest close since Nov. 7, 2007. The country's
second-largest lender China Construction Bank (0939.HK) gained
1.73 percent to close at HK$7.05 ahead of the release of its
third-quarter earnings due later Friday.
Chinese insurer China Life (2628.HK) surged 5.74 percent to a
22-month closing high at HK$37.75, and PICC (2328.HK) jumped
10.47 percent to a more than two-month closing high at HK$6.12.
Hong Kong's central bank, the Hong Kong Monetary Authority,
has repeatedly injected money to contain an appreciating Hong
Kong dollar HKD=. It intervened three times on Friday,
injecting a total HK$9.688 billion ($1.25 billion) as of 0855 GMT
after putting in a total of HK$8.138 billion on Thursday.
Higher oil price helped boost China's leading liquefied
natural gas (LNG) developer CNOOC Ltd (0883.HK) to end at
HK$12.90, its highest close since July 14, 2008.
(Editing by Chris Lewis)
