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Hong Kong stocks close higher with HSBC's rebound

(Xinhua)
Updated: 2009-01-22 17:21

HSBC rebounded after eight consecutive days of decline, boosting the main index of Hong Kong stocks Thursday, but traders said they don't expect a major market recovery in the near term because of weak corporate earnings and economic data.

The Hang Seng Index rose 74.36 points, or 0.6 percent, to 12, 657.99, but was off an intraday high of 12,895.25.

Turnover fell to HK$35.38 billion ($4.57 billion) from HK$47.67 billion ($6.15 billion) on Wednesday.

Index heavyweight HSBC rose 3.6 percent to HK$57.00, ending eight days of decline during which it lost 26 percent. The stock had been hammered by concerns that HSBC may need to raise additional funds.

Gains in Chinese banks also propelled the blue-chip index Thursday. Bank of China rose 2.1 percent to HK$1.93, China Construction Bank advanced 1.6 percent to HK$3.72, and Industrial and Commercial Bank of China ended 1.6 percent higher at HK$3.23.

Analysts said they expect the market to resume its descent after Thursday's gains, as investors stay on the sidelines ahead of the Lunar New Year holiday and concerns about the global economy remain. Hong Kong markets will be closed from Jan 26 to Jan 28.