* HSI +0.5 pct, H-shares +0.7 pct, CSI300 +0.2 pct
* Cyclicals strong on upbeat global economy outlook
* Shanghai-based companies rise after trade zone approval
* PetroChina falls after H1 results
By Yimou Lee
HONG KONG, Aug 23 Hong Kong shares rose for a
second day on Friday, lifted by cyclical sectors such as energy
and properties, as upbeat business surveys from multiple
continents spawned optimism about the global economy.
China shares edged higher, aided by strength in
Shanghai-based logistics companies after Beijing approved a free
trade zone in the country's business hub.
By midday, the Hang Seng Index was up 0.5 percent at
22,011.07 points. The China Enterprises Index of the top
Chinese listings in Hong Kong rose 0.7 percent. For the week,
they were down 2.3 and 1.8 percent, respectively.
The CSI300 rose 0.2 percent, while the Shanghai
Composite Index was up 0.3 percent at 2,073.38 points.
On the week, they are now up 0.1 and 0.2 percent, respectively.
"The Hong Kong market will continue to exhibit the pattern
of correction and rebound," said Ben Kwong, chief operating
officer at brokerage KGI Asia Ltd.
"The movement is very short-term. They are driven by
corporate and policy news," he said, adding that the Hang Seng
Index may seesaw between 21,500 to 22,500 points in the next few
Growth-sensitive sectors led the gains in Hong Kong after
positive surveys and data from the U.S., Europe and China raised
hops the global economy is recovering.
China Coal rose 2 percent while Yanzhou Coal
gained 1.6 percent. China Shenhua Energy was
up 2.9 percent and Anhui Conch by 2 percent.
Properties were also strong, with Greentown China
up 3.4 percent and Poly Property rising 1.7 percent.
Henderson Land Development climbed 3 percent even
though the company recorded a 4 percent fall in first-half
Shanghai-based companies, such as Shanghai International
Port and Jin Jiang Investment, spiked 10
percent - the maximum allowed one-day gain - after the State
Council approved a free trade zone for the country's financial
EYES ON EARNINGS
PetroChina Co Ltd reversed early gains
and fell 1 percent in Hong Kong after the company reported a
first-half net profit of 65.5 billion and said it is optimistic
about its natural gas business after the government's first gas
price hike in three years.
Car maker Great Wall Motor Company Ltd
gained 1.6 percent in Hong Kong and 1.7 percent in Shanghai
after announcing a 74 percent increase in first-half net profit.
Haitong Securities Co Ltd saw early
gains erased after reporting a 31.6 percent rise in first-half
net profit. The stock was down 1.3 percent at midday.
Oil explorer Kunlun Energy Co Ltd rose 1.8 percent
after saying its first half net profit rose 5.1 percent.
Agricultural Bank of China , Ping An
Insurance Group , China COSCO Holdings
and the Industrial and Commercial Bank of China
are among companies scheduled to announce
earnings next week.