By Hanny Wan
Jan. 30 (Bloomberg) -- Hong Kong stocks rose, reversing declines as speculation that China will announce stimulus measures over the weekend overshadowed concerns a slowing global economy is eroding demand.
Ping An Insurance (Group) Co., China’s second-largest insurer, climbed 6 percent. Hang Lung Properties Ltd., a Hong Kong-based developer which also invests in mainland China, added 5.7 percent. HSBC Holdings Plc dropped 2.9 percent while Li & Fung Ltd. slipped 1.8 percent after the city’s new mortgages and exports fell.
“If you take a long-term investment view, you can be more positive,” said John Koh, regional investment director at MEAG Hong Kong Ltd., which manages $1.1 billion. “There could be upside risk in the market, if government stimulus packages actually boost global economies. There could be a big rebound. So I’m not too bearish.”
The Hang Seng Index added 123.78, or 0.9 percent, to close at 13,278.21, after falling as much as 1.9 percent in the morning session. The gauge climbed 5.6 percent this week. Markets were closed for the first three days of the week for Lunar New Year holidays. The measure retreated 7.7 percent this month.
The Hang Seng China Enterprises Index, which tracks Chinese companies’ so-called H shares, advanced 1.9 percent to 7,131.98, the highest close since Jan. 19.
“There are rumors about China cutting interest rates over the weekend,” said Kenny Tang, executive director of Redford Securities Co. “The government will definitely continue to roll out more stimulus measures because they feel the urgency to turnaround the slowing economy.”
China has pressed state-owned banks to increase lending, unveiled a 4 trillion-yuan ($585 billion) stimulus package, reduced export taxes and added support for 10 industries. The central bank has also cut the key lending rate five times since September.
To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net
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