* HSI, H-shares +1,2 pct; CSI300 -0.6 pct, Shanghai -0.2 pct
* Cyclicals lift Hong Kong on relief from Summers' Fed
* Galaxy at record high after pro-Beijing groups win Macau
By Clement Tan
HONG KONG, Sept 16 Hong Kong shares soared to
their highest in 17 weeks early Monday, buoyed by Lawrence
Summers' withdrawal as a candidate to head the Federal Reserve
and by Macau election results that made its gambling sector a
News that Lawrence Summers pulled out of the race to head
the Fed lifted most Asian markets, which feared that the policy
hawk could accelerate tapering of the Fed's aggressive monetary
Still, a paring of the Fed's $85 billion a month bond-buying
could be announced after its Fed's meeting on Tuesday and
Also boosting Hong Kong market was how pro-business groups
emerged victorious in Macau's election over the weekend.
Mainland Chinese markets underperformed Asia. At the midday
break, the CSI300 of the leading Shanghai and Shenzhen
A-share listings was down 0.6 percent, while the Shanghai
Composite Index slipped 0.2 percent.
The Hang Seng Index rose 1.2 percent to 23,182
points, its highest since May 22. The China Enterprises Index
of the top Chinese listings in Hong Kong also climbed
Mainland Chinese markets will be shut Thursday and Friday
for the Mid-Autumn Festival, while Hong Kong will be closed on
"The Macau election result, along with hopes that the public
holiday later this week will give gaming revenue a boost, are
supporting strong gains for the casinos," said Jackson Wong,
Tanrich Securities' vice-president for equity sales.
Galaxy Entertainment spiked 5.4 percent to a
record high, while Sands China jumped 4 percent - to
near a record high set last week - after pro-Beijing groups won
Macau's fifth legislative election. Local media reported that
voter turnout in the Chinese enclave dipped from four years ago.
This month, Galaxy has surged nearly 17 percent and Sands
China is up a more modest 8 percent as unofficial weekly revenue
impressed, raising hopes of a strong September ahead of the
holidays later this week, which could further buoy revenue.
Suning Appliance jumped 4.9 percent in Shenzhen
after local media reported China's largest electrical appliance
retailer may become the first private company to run a retail
bank after the State Administrator for Industry and Commerce
approved the name "Suning Bank" for use.
China needs to do more to develop private banks and make
asset securitisation a standard practice as it tries to
strengthen its financial system, central bank governor Zhou
Xiaochuan wrote in an article on the official People's Daily
Chinese financial A-shares were broadly weaker. Shanghai
Pudong Development Bank tumbled 4.5 percent in
Shanghai, but is still up 51 percent from a June 24 trough. Most
of the rally for the stock, which last Thursday closed at its
highest since mid-April 2010, came after Beijing announced
approval of a free-trade zone in Shanghai.
China Minsheng Bank , which was up 1.6
percent in Hong Kong and down 1.6 percent in Shanghai, said at
the midday trading break it has entered a strategic partnership
with the Alibaba Group.