Aug 11 (Reuters) - Hong Kong shares edged up on Wednesday as developer China Evergrande Group’s plans to sell certain assets heal confidence in real estate companies.
**The Hang Seng index rose 0.2%, to 26,660.16, while the China Enterprises Index gained 0.5%, to 9,548.13 points.
**Hang Seng Mainland Properties Index closed up 4.5%.
**Hang Seng Healthcare Index went down 2.5%.
**China’s heavily indebted Evergrande Group surged 7.8% after it confirmed it was in talks about the sale of stake in EV, property management units.
**Shares of China Evergrande New Energy Vehicle rose 4.7%, Evergrande Property Services gained 8.9%.
** Market expectations of a new rule to cap the land price premium at 15% by Ministry of National Resources also boosted confidence in the sector. The policy if implemented would cut developers’ cost of land purchases.
** Guosen Securities wrote in a note that despite lingering pressure on China’s real estate sector, the chance of further substantial tightening becomes slimmer. Investors are seeing the light at the end of the tunnel for developers’ credit issues, so valuations could be repaired, the brokerage wrote.
** Banking shares also jumped, with the financials sub-index closing up 1%, as investors bet lenders’ asset quality will improve along with developers’ financial health.
**Index heavyweights Meituan and Tencent dropped 0.7% and 0.4% respectively, both shares jumped more than 5% yesterday. (Reporting by the Shanghai Newsroom)
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August 11, 2021 at 03:42PM
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Hong Kong shares close up as developers gain - Reuters
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