Special Report: Global Financial
Crisis
by Chen Siwu
HONG KONG, March 13 (Xinhua) -- Hong Kong stocks
closed sharply higher on Friday as the market was buoyed by Chinese Premier Wen
Jiabao's latest remarks on new economic stimulus measures.
Encouraged by Wall Street's abrupt rally overnight, the benchmark Hang Seng Index jumped 393.65 points, or 3.28 percent, to open at 12,395.18 and extended its gains to 524.27 points, or 4. 37 percent, to close at the day's highest 12,525.8.
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A woman walks past an electronic screen showing the Hang Seng Index in Hong Kong March 13, 2009. Hong Kong's benchmark Hang Seng Index rose 4.37 percent to close at 12525.80 on Friday. (Xinhua/Wong Pun Keung)
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At a press conference after the conclusion of the
Chinese top legislature's annual meeting held in Beijing Friday morning, Premier
Wen said China is ready to roll out new and greater stimulus measures to boost
the economy at any time necessary.
The market had rebounded about 10 percent from
Monday's tumble triggered by HSBC's unusual plunge following its 17.7 billion
U.S. dollars of rights issue.
Turnover rose sharply to 43.93 billion HK dollars
(5.67 billion U.S. dollars) from Thursday's 28.53 billion HK dollars (3.68
billion U.S. dollars).
Share prices rose across the board. Among 42
constituents of the Hang Seng Index, advancer greatly outnumbered losers 40 to
2.
HSBC, which accounts for the largest weighting of the
benchmark Hang Seng Index, advanced 5.66 percent to 38.25 HK dollars, compared
with its ex-rights price at 35.6 HK dollars on Thursday.
Friday's closing price for HSBC has been up about
28.8 percent from closing price at 33 HK dollars set in the last-second closing
auction session on Monday.
Another market heavyweight China Mobile, the market's
largest stock by capitalization and the country's largest mobile phone operator,
gained 2.81 percent to 67.7 HK dollars.
Local banks in Hong Kong were all higher. BOC Hong
Kong, a banknote issuer in Hong Kong, jumped 4.17 percent to 6.99 HK dollars.
Standard Chartered Bank, another note-issuing bank, advanced 6.13 percent to
89.2 HK dollars. Hang Seng Bank, a major local bank controlled by HSBC, rallied
6.03 percent to 77.4 HK dollars. Bank of East Asia bounced 4.61 percent to 13.16
HK dollars.
The Hong Kong Exchanges and Clearing Ltd., the
market's sole operator, surged 8.09 percent to 63.5 HK dollars. Board of the
market operator said on Thursday that it would scrap the controversial 10-minute
closing auction trading session as of March 23 for the sake of market stability.
The unlimited pricing scheme was accused of being
used for manipulation of closing prices and was blamed for the market's unusual
tumble on Monday.
Hong Kong's property companies were stronger. Sung
Hung Kai Property, the city's largest developer, increased 6.28 percent to 62.6
HK dollars. Cheung Kong, one of the largest property companies controlled by
tycoon Li Ka-shing, went up 4.93 percent to 62.8 HK dollars. Henderson Land
added 2 percent to 25.5 HK dollars. Sino Land rose 3.66 percent to 6.52 HK
dollars. Hang Lung Property rallied 4.93 percent to 15.74 HK dollars. New World
Development moved up 4.31 percent to 6.78 HK dollars.
The China Enterprise Index, which reflects the
performance of 42 major companies registered in the Chinese mainland, soared
320.04 points, or 4.6 percent, to close at 7,282.52 as Premier Wen Jiabao's
remarks at the press conference boosted investors' confidence in the country's
economic outlook.
Hong Kong-listed banks and insurers in the Chinese
mainland all rose. ICBC, China's largest lender, jumped 5.02 percent to 3.35 HK
dollars. Bank of China increased 2.25 percent to 2.27 HK dollars. China
Construction Bank rebounded 4.88 percent to 4.08 HK dollars. Bank of
Communications dipped 0.44 percent to 4.56 HK dollars. China Merchants Bank was
up 4.69 percent to 12.96 HK dollars.
China Life, the country's largest insurer, gained
4.87 percent to 23.7 HK dollars. Ping An, China's second largest insurance
company behind China Life, surged 8 percent to 44 HK dollars.
China's energy companies all rebounded despite the
pullback of oil prices in Asia trading. PetroChina, the country's largest oil
producer, leaped 5.89 percent to 5.75 HK dollars. Sinopec, the country's largest
refiner, advanced 4.91 percent to 4.06 HK dollars. CNOOC, China's largest
offshore oil producer, rose 4.09 percent to 7.12 HK dollars. (7.75 HK dollars =
1 U.S. dollar)
Wall Street achieves 3-day winning streak
NEW YORK, March 12 (Xinhua) -- Wall Street managed to
achieve aback-to-back advance for the third straight day, a positive sign for
stocks that have been rebounding from 12-year lows this week. And the Dow Jones
enjoyed its biggest three-day jump since last November.
Financials, led by banking giants, took the lead in the
rally. Investors were seemingly tired of dragging down shares of financial
institutions and good news from those ailing banks provided them with an excuse
to buy. Full story
Premier: China ready to roll out new stimulus package if
needed
BEIJING, March 13 (Xinhua) -- China has prepared plans to
cope with even bigger difficulties amid the financial crisis and is ready to put
forward new stimulus package at any time, said Premier Wen Jiabao here Friday.
Wen, while meeting press after the annual parliament
session, said China is prepared for protracted difficult situations and has
gathered sufficient "ammunition" to combat the crisis. Full story
