Hong Kong Stocks Advance; Sino Land Leads Real-Estate Gains

By Hanny Wan

Aug. 29 (Bloomberg) -- Hong Kong stocks rose, driving the benchmark index to its first weekly advance in four, after the U.S. economy grew faster than estimated, fueling optimism global economic growth won't falter.

Yue Yuen Industrial (Holdings) Ltd., the world's largest maker of sports shoes, climbed 3.8 percent. Sino Land Co., a Hong Kong-based developer, advanced 4.6 percent, leading gains among real-estate shares.

The Hang Seng Index added 390.09, or 1.9 percent, to 21,362.38 at the 12:30 p.m. break, extending its advance this week to 4.8 percent, halting a three-week 11 percent losing streak. The measure has dropped 6 percent this month.

The U.S. economic data ``does boost sentiment for the short term,'' said Mona Chung, a Hong Kong-based fund manager at Daiwa Asset Management Ltd., which oversees more than $2 billion. ``The long-term trend though is that volatility will continue and I don't think markets have hit bottom yet.''

The Hang Seng China Enterprises Index, which tracks so- called H shares of Chinese companies, climbed 2.3 percent to 11,763.03.

The Hang Seng Index has fallen 23 percent this year on concern soaring inflation and $500 billion in writedowns and credit losses at global financial companies will slow economic and profit growth.

Yue Yuen advanced 3.8 percent to HK$21.70. Foxconn International Holdings Ltd., the world's biggest contract maker of mobile phones, added 3.7 percent to HK$5.92.

Henderson Land

The U.S. gross domestic product increased at a 3.3 percent annual pace, compared with the initial estimate of 1.9 percent, the Commerce Department said yesterday.

Sino Land rose 4.6 percent to HK$13.64. Henderson Land Development Co., controlled by its billionaire Chairman Lee Shau- kee, advanced 4.3 percent to HK$48.45. Hang Lung Properties Ltd., a Hong Kong-based developer which also invests in mainland China, added 3.3 percent to HK$24.80.

The Hang Seng Property Index's 3.5 percent jump made it the biggest group gainer by percentage on the Hang Seng Index today.

All but three stocks on the 43-member Hang Seng Index advanced. September futures climbed 1.8 percent to 21,310.

The following stocks were among the biggest winners and losers. Stock symbols are in parenthesis after company names.

Bank of China Ltd. (3988 HK) added 8 cents, or 2.4 percent, to HK$3.40. The nation's third-largest bank said yesterday first- half profit rose 43 percent to 42.2 billion yuan ($6.2 billion). That beat the 41.2 billion yuan average estimate in a Bloomberg survey of analysts.

BOC Hong Kong (Holdings) Ltd. (2388 HK) retreated 66 cents, or 3.7 percent, to HK$17.44. The city's largest publicly traded bank by assets said yesterday first-half profit fell 5 percent to HK$7.09 billion ($908 million) as it booked more impairment losses on credit investments.

CLSA Asia-Pacific Markets cut its rating on the stock to ``underperform'' from ``buy,'' according to a report today. Credit Suisse Group trimmed its share-price estimate for the stock by 12 percent to HK$22. UBS AG lowered its price forecast for the stock by 7 percent to HK$22.30.

China Oilfield Services Ltd. (2883 HK) climbed 56 cents, or 5.7 percent, to HK$10.48. The unit of the nation's third-largest oil producer said yesterday first-half profit rose 40 percent to 1.5 billion yuan after energy companies spent more on exploration and oil prices advanced to records.

CLP Holdings Ltd. (2 HK) lost HK$2.55, or 3.9 percent, to HK$63.30, its worst drop since June 2, on concern it won't get approval to build a liquefied natural gas facility. The Hong Kong government yesterday signed agreements with mainland energy producers to extend the supply of gas and electricity for 20 more years. The sustained supply of cleaner forms of energy from the mainland will ``greatly'' reduce the need for Hong Kong to build an LNG terminal, the government said.

SmarTone Telecommunications Holdings Ltd. (315 HK) fell 21 cents, or 2.8 percent, to HK$7.29. CLSA lowered its rating on the stock to ``sell'' from ``outperform,'' according to a research note today.

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net.