* HSI +1 pct, H-shares +1.7 pct, CSI300 +1 pct
* China Telecom, Unicom up on reported 4G rollout in 2013
* Chinese banks up on news 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
posted solid gains on Wednesday, with the Chinese financial and
telecom sectors strong as investors cheered comments made by
policymakers at the country's annual parliamentary meetings.
ZTE surged on news reports that the
world's fourth-biggest handset maker had entered a strategic
collaboration with Intel for a new platform that could enhance
performance of ZTE's next generation of smartphones.
The Hang Seng Index climbed 1 percent to 22,777.8,
still some way off chart resistance at about 23,000, the top end
of a narrow 500-point range the benchmark has traded in for more
than two weeks.
The China Enterprises Index of the top Chinese
listings in Hong Kong gained 1.7 percent. The CSI300
of the leading Shanghai and Shenzhen listings rose 1 percent,
while the Shanghai Composite Index was up 0.9 percent.
Shanghai volume was robust.
Onshore indexes have now erased more than 80 percent of
sharp losses on Monday that were the CSI300's heaviest in more
than two years. The losses stemmed from the introduction of more
curbs on the mainland housing market.
"The National People's Congress will make for choppy markets
in the next week or so, but the earnings season will provide
opportunities to look for good individual companies with strong
balance sheets," Catherine Yeung, an investment director with
Fidelity Worldwide Investment, said at a media luncheon.
China Unicom climbed 1.7 percent and China Telecom
2 percent after the official China Securities Journal
reported that the country may issue licenses for 4G network
licenses this year, expanding on a trial conducted by China
Mobile. The article cited Minister of Industry and
Information Technology Miao Wei.
ZTE jumped 8.9 percent in Hong Kong, its biggest one-day
gain since in more than four years, and the Shenzhen listing
surged the maximum-allowed 10 percent.
The Chinese banking sector rose after state media reported
that Shang Fulin, the China Banking Regulatory Commission
chairman, said 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.
Mid-sized lender China Minsheng Bank
climbed 2.8 percent in Hong Kong, while gaining 3.4 percent in
Shanghai. In Hong Kong, the "Big Four" Chinese banks each posted
gains of more than 2 percent.
The Chinese property sector rebounded strongly after the
country's top economic planning agency said guidelines for
urbanisation will be launched by July. China plans to spend 40
trillion yuan ($6.4 trillion) to bring 400 million people to
cities over the next decade.
Fresh curbs on the housing market announced late last Friday
sent stocks reeling earlier this week. But on Wednesday, China
Vanke jumped 2.4 percent in Shenzhen, while China
Resources Land rose 1.9 percent.
EARNINGS IN FOCUS
Snack maker Want Want China Holdings
underperformed, inching up 0.2 percent despite posting a 32
percent rise in 2012 net profit on Tuesday. The increase was
largely in line with market expectation.
On Wednesday, its shares were hit by a UBS downgrade from
"neutral" to "sell". The brokerage said the company's 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. The stock, up 6.8 percent this
year, is trading at a 17 percent premium to its historic median
12-month forward earnings multiple, according to Thomson Reuters
In the last 30 days, two of 15 analysts 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 1.2 percent, while Belle
jumped 3.6 percent after the index manager announced
they would become FTSE China 25 components, effective after
markets close on March 15.
The two stocks will replace Yanzhou Coal and Zijin
Mining in the benchmark. On Wednesday, Yanzhou Coal
was up 0.4 percent and Zijin Mining down 2.3 percent.