HONG KONG, Dec 31 (Reuters): China shares rose in a choppy trade on
Tuesday, with strength in securities and steel firms overshadowing
concerns that the resumption of new share listings will drain liquidity
from the market after a more than one-year freeze.
China has approved five firms to list on mainland exchanges, ending a suspension on initial public offerings (IPO), as authorities look to reboot a reformed market in 2014.
Hong Kong shares ended the year higher during Tuesday's half-day session, with some "window dressing" buying from fund managers to improve the appearance of portfolios ahead of the year-end.
The Hang Seng Index closed up 0.3 per cent at 23,306.39 points, while the China Enterprises Index of the top Chinese listings in Hong Kong rose 0.4 per cent.
They were up 2.9 per cent and down 5.4 per cent in 2013, respectively.
The CSI300 rose 1.3 per cent by midday, while the Shanghai Composite Index was up 0.9 per cent at 2,115.79 points. Both swung between negative and positive territory in morning trade.
So far this year, they have lost 7.7 per cent and 6.8 per cent, respectively.
Hong Kong markets will reopen on Thursday. Mainland markets, open for a full day on Tuesday, will close on Wednesday.
"By doing the IPOs gradually, it may not have too much impact on the Chinese markets," said Linus Yip, a Hong Kong-based strategist at First Shanghai Securities. "The market already has some expectations."
"The liquidity is a short-term problem and it won't have a long-lasting effect," Yip said.
China said last month it would start lifting a ban on new stock listings in early 2014 with around 50 firms set to complete the streamlined registration process by January, sparking concerns that a wave of new stocks could direct money away from where it is needed.
China's central bank said on Tuesday it will achieve reasonable growth in credit and social financing while keeping appropriate liquidity and continuing a prudent monetary policy.
Leading gains were Chinese brokerage and steel companies. Citic Securities, China's largest listed brokerage, rose 1.9 per cent in Hong Kong and 1.7 per cent in Shanghai. China Merchants Securities jumped 3.4 per cent in Shanghai.
Inner Mongolian Baotou Steel Union Company surged the daily 10 per cent limit after the company said it will raise up to 29.8 billion yuan ($4.92 billion) for asset acquisitions from its parent company.
A strong performance from index heavyweight stocks helped boost the Hong Kong market, with Hutchison Whampoa Ltd rising 0.4 per cent to a record high and Galaxy Entertainment up 0.9 per cent.
Shares in China Vanke, the country's largest developer by sales, rose 1.5 per cent after the official China Central Television reported on Tuesday the company owed unpaid land taxes for more than 4 billion yuan.
The state broadcaster was under harsh criticism for being "inaccurate" after it reported last month that billions were owed in unpaid taxes from major developers.
China has approved five firms to list on mainland exchanges, ending a suspension on initial public offerings (IPO), as authorities look to reboot a reformed market in 2014.
Hong Kong shares ended the year higher during Tuesday's half-day session, with some "window dressing" buying from fund managers to improve the appearance of portfolios ahead of the year-end.
The Hang Seng Index closed up 0.3 per cent at 23,306.39 points, while the China Enterprises Index of the top Chinese listings in Hong Kong rose 0.4 per cent.
They were up 2.9 per cent and down 5.4 per cent in 2013, respectively.
The CSI300 rose 1.3 per cent by midday, while the Shanghai Composite Index was up 0.9 per cent at 2,115.79 points. Both swung between negative and positive territory in morning trade.
So far this year, they have lost 7.7 per cent and 6.8 per cent, respectively.
Hong Kong markets will reopen on Thursday. Mainland markets, open for a full day on Tuesday, will close on Wednesday.
"By doing the IPOs gradually, it may not have too much impact on the Chinese markets," said Linus Yip, a Hong Kong-based strategist at First Shanghai Securities. "The market already has some expectations."
"The liquidity is a short-term problem and it won't have a long-lasting effect," Yip said.
China said last month it would start lifting a ban on new stock listings in early 2014 with around 50 firms set to complete the streamlined registration process by January, sparking concerns that a wave of new stocks could direct money away from where it is needed.
China's central bank said on Tuesday it will achieve reasonable growth in credit and social financing while keeping appropriate liquidity and continuing a prudent monetary policy.
Leading gains were Chinese brokerage and steel companies. Citic Securities, China's largest listed brokerage, rose 1.9 per cent in Hong Kong and 1.7 per cent in Shanghai. China Merchants Securities jumped 3.4 per cent in Shanghai.
Inner Mongolian Baotou Steel Union Company surged the daily 10 per cent limit after the company said it will raise up to 29.8 billion yuan ($4.92 billion) for asset acquisitions from its parent company.
A strong performance from index heavyweight stocks helped boost the Hong Kong market, with Hutchison Whampoa Ltd rising 0.4 per cent to a record high and Galaxy Entertainment up 0.9 per cent.
Shares in China Vanke, the country's largest developer by sales, rose 1.5 per cent after the official China Central Television reported on Tuesday the company owed unpaid land taxes for more than 4 billion yuan.
The state broadcaster was under harsh criticism for being "inaccurate" after it reported last month that billions were owed in unpaid taxes from major developers.
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