Hong Kong property developers hit fresh 1-year highs

The skyline of Hong Kong, where property stocks hit a year-peak as earnings from a stock market rally sparked an advance in the equity market. Photo: Bloomberg

Hong Kong property developers were the major beneficiaries on Monday of the weaker-than-expected mainland manufacturing data for April, lifting a number of the city’s brick-and-mortar shares to a fresh one-year high in the first trading day of May.

Shares in New World Development rose 5.4 per cent to a 52-week high of HK$10.86, after UBS raised the target price on the shares to HK$11.65, while Sun Hung Kai Properties rose almost 5 per cent to HK$135.3, another 52-week high.

Joining the other real estate shares that hit their highest level in one year, Sino Land and Henderson Land Development jumped 3.5 and 3.4 per cent respectively.

However, overall turnover of the properties shares remained subdued, with majority of shares which exchanged hands taking place in HSBC, AIA, and Tencent. The trio dropped 1.4, 1.1 and 1 per cent respectively.

All major state-owned lenders finished in red on Monday morning, with China Construction Bank being the only exception, rising 1.2 per cent.

China’s factory activity slowed more than initially thought in April, according to the final reading of HSBC/Markit’s data. The final April reading came at 48.9, down from the preliminary data of 49.4 that was released last month.

On a brighter note, Fonsun International, controlled by mainland billionaire Guo Guangchang, rose more than 5 per cent after China’s largest privately held conglomerate announced over the weekend it is buying US Insurer Ironshore for about US$2 billion.

- http://www.scmp.com/business/markets/article/1785572/hong-kong-property-developers-hit-fresh-1-year-highs