* HSI +0.9 pct, H-shares +1.6 pct, CSI300 +0.5 pct
* China Telecom, Unicom lifted by reported 4G rollout in
* Chinese banks up, CBRC says loan-to-deposit ratio under
* Power Assets climb ahead of 2012 full-year earnings
By Clement Tan
HONG KONG, March 6 Hong Kong and China shares
are set to rise for a second straight day on Wednesday, as Wall
Street's record close accentuated gains in some sectors after a
series of policy announcements from the country's ongoing annual
ZTE surged on news reports that the
world's fourth-biggest handset maker had entered a strategic
collaboration with Intel focused on a new platform that could
enhance the performance of ZTE's next generation of smartphones.
The CSI300 index of the leading Shanghai and
Shenzhen A-share listings went into the midday trading break up
0.5 percent, further clawing back steep losses on Monday. The
Shanghai Composite Index rose 0.4 percent.
The Hang Seng Index was up 0.9 percent at 22,756.1.
It is still some way off chart resistance at about 23,000, the
top end of a narrow 500-point range the benchmark has traded for
more than two weeks.
The China Enterprises Index of the top Chinese
listings in Hong Kong climbed 1.6 percent. Gains came in heavy
volumes in both on- and offshore Chinese markets, continuing a
recovery after the CSI300 posted its worst loss in more than two
years on Monday.
"Part of today's risk-on mode has to do with overnight U.S.
gains, but there are also several sector moves driven by news
flow coming out of the ongoing National People's Congress, which
could keep markets choppy ahead," said Larry Jiang, chief
strategist at Guotai Junan International Securities.
ZTE and China's two smaller telcos were also lifted by a
report in the official China Securities Journal that cited Miao
Wei, minister of Industry and Information Technology, as saying
Beijing could issue 4G network licences this year.
In Hong Kong, China Unicom climbed 3.7 percent,
while China Telecom rose 2.5 percent. ZTE jumped 8.3
percent in potentially its best daily showing since September
2011 in Hong Kong, while soaring by the maximum 10 percent in
The Chinese banking sector was lifted by comments from Shang
Fulin, the China Banking Regulatory Commission chairman, that
his agency is researching the possibility of raising or
replacing the loan-to-deposit ratio capped on the country's
lenders, now at 75 percent.
The official China Securities Journal also reported Shang as
saying wealth management products, along with trust and
investment products originating from banks, do not constitute
Mid-sized lender China Minsheng Bank
climbed 2.6 percent in Hong Kong, while jumping 3.3 percent in
DOWNGRADE HURTS WANT WANT
Snack maker Want Want China Holdings bucked
broader market gains, shedding 2.6 percent after UBS analysts
downgraded the stock from "neutral" to "sell" and cut their
price target by about 6 percent despite the company posting a 32
percent rise in 2012 net profit on Tuesday that was largely in
line with market expectation.
In a note dated March 6, UBS said the 20 to 25 percent
revenue guidance for 2013 appeared aggressive given that volume
growth was only 7 percent in 2012 and management did not plan
price increases for 2013.
Power Assets rose 1.1 percent ahead of its 2012
full-year corporate earnings later in the day. Up 6.9 percent
this year, it is trading at a 17 percent premium over its
historic median 12-month forward earnings multiple, according to
Thomson Reuters StarMine.
In the last 30 days, 2 of 15 anaysts have upgraded their
2012 full-year earnings-per-share estimates for Power Assets by
an average of 2.6 percent, according to StarMine.
Tencent Holdings rose 1.7 percent, while Belle
jumped 3 percent after index manager announced them as
new FTSE China 25 components, replacing Yanzhou Coal
and Zijin Mining, which are up 0.9 and down 1.5