October 15, 2013 / 1:03 AM / in 4 years

Hong Kong shares set to start higher as hopes grow for U.S. deal

HONG KONG, Oct 15 (Reuters) - Hong Kong shares could start higher on Tuesday after senior U.S. Senate leaders indicated that they were within striking distance of a deal that could resolve a fiscal standoff and help avert an unprecedented U.S. debt default.

Senate Majority Leader Harry Reid, a Democrat, and his Republican counterpart, Mitch McConnell, ended a day of constant talks with optimistic proclamations, as details leaked out of the pact they were negotiating.

Financial markets in the Chinese territory were shut on Monday for a public holiday.

Chinese data on Monday showed 787 billion yuan of new loans were recorded in September, topping expectations for 650 billion yuan, while September consumer inflation hit a seven-month high at 3.1 percent.

Trade data released on Sunday showed the country’s exports dipping 0.3 percent in September from a year earlier, versus expectations for a 6 percent rise. More data are due on Oct. 18, including third quarter GDP growth.

The Hang Seng Index ended up 1.2 percent at 23,218.3 points on Friday, while the China Enterprises Index of the top Chinese listings in Hong Kong also rose 1.2 percent.

Elsewhere in Asia, Japan’s Nikkei was up 0.5 percent, while South Korea’s KOSPI advanced 1.1 percent at 0045 GMT.

FACTORS TO WATCH:

* China-focused water treatment company SIIC Environment Holdings Ltd, a unit of Shanghai Industrial Holdings Ltd, is raising S$260.2 million ($208.7 million) by selling new shares to investors including Chinese sovereign wealth fund CIC and private equity firm RRJ Capital.

* China’s regulators have fined Ping An Insurance’s securities unit for helping a fraudulent Chinese company to list its shares on the stock market, a move underlining Beijing’s determination to clean up the market.

* Sunny Optical Technology Group Co Ltd said it has temporarily suspended operation of its production facilities in China’s Yuyao due to severe flooding.

* Huaneng Renewables Corp Ltd announced the placing of new H shares under a general mandate, raising gross proceeds of about HK$1.58 billion.

* Haitong Securities Co Ltd says its key securities business and asset management unit posted combined net profit of 462 million yuan ($76 million) in September.

* CITIC Securities Co Ltd says its main securities business, including Zhejiang and Wantong units, posted combined Sept net profit of 781 million yuan ($128 million).

* BBMG Corp says to issue 500.9 million A shares at the subscription price of 5.58 yuan per share.

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