* HSI +0.7 pct, H-shares +0.8 pct, CSI300 +0.5 pct
* China railway, property lifted by reported policy cues
* Lenovo slips from 5-yr high ahead of positive Q3 earnings
* Investors cheer ZTE's stronger smartphone forecast
By Clement Tan
HONG KONG, Jan 30 Hong Kong shares climbed to
their highest since end-April 2011 on Wednesday, helped by
strength in China-related counters that pushed the Hang Seng
Index above a chart level that had put a lid on gains for nearly
The CSI300 Index of the top Shanghai and Shenzhen
A-share listings rose 0.5 percent, while the Shanghai Composite
Index climbed 1 percent in the fourth-highest volume
this month. Both closed at their highest since May 2012.
The Hang Seng Index climbed 0.7 percent to 23,822.1,
its highest close since April 27, 2011. Gains on Wednesday
helped the benchmark close above technical resistance at around
23,708 that had held back gains since mid-January.
In early trade, the Hang Seng briefly breached 23,900,
triggering the termination of some callable bear contracts at
the 23,800 and 23,900 levels, dealers said. They cited Hang Seng
Index January futures expiring on Wednesday as another factor.
The China Enterprises Index of the top Chinese
listings in Hong Kong rose 0.7 percent as turnover lingered just
below its average in the last month for a third straight session
ahead of the end of the U.S. Federal Reserve policy setting
meeting later in the day.
"There's still some money sitting on the sidelines, waiting
to get into the market, but I won't get too carried away by the
rally we have had in the last few weeks," said Larry Jiang,
chief strategist at Guotai Junan International Securities.
"We have been pretty stagnant in Hong Kong lately despite
strong moves up in the A-share and U.S. markets, so this can be
seen as a form of catch-up, but turnover has actually come down
over the last week or so," Jiang added.
Chinese property counters rose on Wednesday after the
Guangzhou-based 21st Century Business Herald newspaper quoted an
unnamed economist, identified as close to policymakers, as
saying that Beijing could tolerate house price rises of at most
10 percent this year, after taking inflation, income growth and
GDP growth into account.
China Resources Land climbed 2.1 percent to a
record closing high in Hong Kong. It is now up 14.7 percent in
January after surging 69 percent in 2012. Shenzhen-listed China
Vanke jumped 3.8 percent to its highest close since
Both were helped by a report in various official Chinese
media that more than half of China Development Bank's new loans
in 2013 will go to supporting the new leadership's urbanisation
The official China Securities Journal newspaper also
reported that China's railway ministry plans to spend 117
billion yuan buying rail cars this year, up from 108.2 billion
yuan in 2012.
Shares of China Railway Construction
rebounded 3.9 percent from Tuesday's 1-1/2-month low in Hong
Kong, and rose 0.7 percent in Shanghai.
EARNINGS, GUIDANCE IN FOCUS
Chinese oil giant CNOOC Ltd rose 1.9 percent to
its highest since Jan. 11 in Hong Kong. After markets closed,
CNOOC said it expects oil production could increase up to 2
percent this year compared to 2012, while earmarking $12 billion
-$14 billion for exploration, development and production.
ZTE Corp reversed midday losses to end
up 1.7 percent in Hong Kong and 1.9 percent in Shenzhen after a
senior executive said China's second-largest telecom equipment
maker expects smartphone shipments in 2013 to exceed an earlier
50 million unit forecast.
Lenovo Group fell 2.7 percent from Tuesday's more
than five year closing high. After markets shut, the world's
second-largest personal computer maker reported a record
quarterly profit that handily trumped market expectations.
Shares of Lenovo shares have risen 18 percent in January
after jumping 35.5 percent in 2012. The stock is currently
trading at a 7.5 percent premium over its historical median
12-month forward earnings multiple, according to Thomson Reuters
China Unicom gained 1 percent from Tuesday's
one-month low in Hong Kong. After markets closed, China's
second-largest mobile operator said it expects to post a 50
percent net profit increase for 2012 from a year earlier.