The advance follows yesterday’s solid gains (Hong Kong ended 1.3% up, Shanghai rose 0.7%), even though Tuesday’s manufacturing data out of China was more of a mixed picture.
In Hong Kong this morning, mainland Chinese property stocks are gaining steam on an improved outlook. Several of the nation’s largest developers are leading the rally.Real-estate developers are also outperformers in Shanghai.
However, mainland Chinese banks are taking solid losses in Hong Kong as concerns about rising bad-loan levels and the economic slowdown cast a shadow over the nation’s bigggest lenders.
China Merchants Bank is retreating 1.9%, China Minsheng Banking Corp. is down 1.8%, Bank of China is falling 1.5%, and Industrial & Commercial Bank of China is 1.1% lower.