SHANGHAI, Jan 2 (Reuters) - Hong Kong stocks rose to the highest level in over a decade on Tuesday, aided by a surge in property shares as well as China’s H-Share full convertibility reform which is generally viewed as positive to Hong Kong-listed Chinese companies. ** China stocks also started 2018 trading on a bullish note on better-than-expected December manufacturing activity.
** China’s securities regulator said on Friday it would launch a pilot scheme that allows mainland-incorporated companies listed in Hong Kong to convert their non-tradable equity into free-floating shares. Analysts said the move would help improve corporate governance of H-share companies in the long run. ** Sentiment is also buoyed by a private business survey showing growth in China’s manufacturing sector unexpectedly picked up to a four-month high in December as factories cranked up production to meet a surge in new orders. ** At 04:17 GMT, Chinese H-shares listed in Hong Kong rose 2.79 percent at 12,035.56 while the Hang Seng Index was up 1.68 percent at 30,421.26.
** the Shanghai Composite index was up 35.81 points or 1.08 percent at 3,342.98. ** China’s blue-chip CSI300 index was up 1.22 percent, with its financial sector sub-index higher by 2.09 percent, the consumer staples sector down 0.23 percent , the real estate index up 3.76 percent and healthcare sub-index up 0.08 percent. ** The smaller Shenzhen index was up 0.7 percent and the start-up board ChiNext Composite index was higher by 0.53 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.80 percent while Japan’s Nikkei index was down 0.08 percent . ** The yuan was quoted at 6.5012 per U.S. dollar, 0.09 percent firmer than the previous close of 6.5069. ** The largest percentage gainers in the main Shanghai Composite index were Shandong Lubei Chemical Co Ltd up 10.03 percent, followed by SJEC Corp gaining 10.01 percent and Chengdu Xuguang Electronics Co Ltd up by 10 percent. ** The largest percentage losses in the Shanghai index were China Southern Airlines Co Ltd down 5.37 percent, followed by BOCO Inter-Telecom Co Ltd losing 5.03 percent and Jiangsu Protruly Vision Technology Group Co Ltd down by 4.96 percent. ** The top gainers among H-shares were Great Wall Motor Co Ltd up 7.71 percent, followed by China Vanke Co Ltd gaining 6.73 percent and Haitong Securities Co Ltd up by 4.59 percent. ** The three biggest H-shares percentage decliners were Air China Ltd which has fallen 0.95 percent, SINOPHARM GROUP CO LTD which has lost 0.9 percent and Huaneng Power International Inc down by 1.0 percent. ** About 11.64 billion shares have traded so far on the Shanghai exchange, roughly 76.8 percent of the market’s 30-day moving average of 15.16 billion shares a day. The volume traded was 0.00 as of the last full trading day. ** As of 04:17 GMT, China’s A-shares were trading at a premium of 29.35 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and above its 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 14.87 as of the last full trading day while the dividend yield was 1.9 percent. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 2.6 percent while the IT sector rose 2.4 percent. The top gainer on Hang Seng was Sunny Optical Technology Group Co Ltd up 8.21 percent, while the biggest loser was Galaxy Entertainment Group Ltd which was down 3.75 percent.
Reporting by Samuel Shen and John Ruwitch; Editing by Simon Cameron-Moore