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Hong Kong stocks rise on state firm restructuring, yuan policy
September 11, 2017 / 8:28 AM / in a month

Hong Kong stocks rise on state firm restructuring, yuan policy

Sept 11 (Reuters) - Hong Kong stocks rose the most in more than a week on Monday, encouraged by another case of Chinese state enterprise reforms and Beijing’s loosening of controls to curb outflows that underlined rising confidence over the yuan’s value.

The improved mood was in line with generally upbeat Asian markets, as investors breathed a sigh of relief, after North Korea celebrated its national day on Sunday with a concert and performance, instead of firing another missile.

The Hang Seng index rose 1.0 percent, to 27,955.13, while the China Enterprises Index gained 0.6 percent, to 11,221.13 points.

The People’s Bank of China (BPOC) scrapped two rules intended to support the yuan, showing Beijing is less worried about yuan depreciation after the currency’s recent surge against the dollar.

Sentiment was also bolstered by the merger of China’s two major building materials firms, China National Materials Co Ltd (Sinoma) and China National Building Material Co Ltd (CNBM), signs of Beijing’s stepped-up efforts to consolidate the country’s bloated state sector.

Sinoma jumped about 13 percent, though CNBM slipped 2.4 percent.

Electric car maker BYD jumped nearly 5 percent in Hong Kong, on news that China is mulling when to ban sales of traditional gasoline cars.

Most sectors rose, led by financials and IT shares . (Reporting by the Samuel Shen and John Ruwitch; Editing by Jacqueline Wong)

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