* HSI +0.7 pct, H-shares +1.9 pct, CSI300 +0.3 pct
* Securities firms rise on soaring profits in H1
* China Cinda jumps for a second straight day
* Gome at 2-month high after positive profit alert
(Updates to midday)
By Grace Li
HONG KONG, July 23 The index of major Chinese
companies listed in Hong Kong surged early Wednesday, getting
close to its 2014 peak, as investors particularly targeted
financial and energy counters seen as undervalued.
Shares on mainland markets also strengthened following
Tuesday's big rise, with insurers and brokerages leading index
At midday, the CSI300 of the leading Shanghai and
Shenzhen A-share listings was up 0.3 percent to a 3-month high.
The Shanghai Composite Index edged up 0.2 percent at
The China Enterprises Index of the top Chinese
listings in Hong Kong climbed 1.9 percent and is now at its
highest since Jan. 2.
The Hang Seng Index was up 0.7 percent at 23,939.47
"Valuations of H-share index companies are extremely low,"
said Jackson Wong, vice-president of Tanrich Securities.
He said with funds flowing into Hong Kong, investors are
seeking stocks that pay high dividends.
Chinese brokerage firms outperformed after posting or
flagging high profits in the first half, driven by the
resumption of mainland initial public offerings and expansion
into more areas of business.
CITIC Securities rose 3 percent in
Hong Kong and 1.1 percent in Shanghai. The largest listed
brokerage in China said on Monday its preliminary H1 net profit
was up 93.2 percent from a year earlier.
Haitong Securities added 3.3 percent
in Hong Kong and 2.3 percent in Shanghai.
The top percentage winner among H-shares was China Cinda
Asset Management, which rose 5.1 percent following
Tuesday's gain of 4.6 percent. It was the second most actively
traded stock in Hong Kong on Wednesday morning.
Analysts attributed the rise of Cinda, which holds a large
amount of distressed assets, to China's improving economic
Shares of GOME Electrical Appliances Holding
surged 6.9 percent after the group said it expected first net
profit to be more than double the year-earlier level.
Chinese insurers were index boosts. Ping An Insurance Group
Co of China climbed 2 percent and China Life
Insurance 1 percent.
(Editing by Richard Borsuk)