HK shares higher ahead of corporate earnings results
Hong Kong shares reversed early losses to end higher on Monday, powered by a surge in China Mobile.
This week sees a plethora of corporate earnings results released this week which will test the strength of the market and provide a read on the current valuation of the Hong Kong market.
There is still significant cash levels held by local and international funds still underweight from 2011 when the Hong Kong market fell 20 per cent.
The Hang Seng Index rose 0.2 percent to 21,134.18 points. It briefly flirted with 21,200, a level it tested on Friday.
China Mobile (0941.HK) surged to its highest since August 2009, after HSBC upgraded the Hong Kong-listed shares of China's largest mobile operator from neutral to overweight, raising its target price by 25 percent to HK$100. The stock rose 3.9% to HK$87.45.
Goldman Sachs upgraded China Mobile, which sent the stock up 4 percent that day.
For the year, China Mobile is up 15.2 percent, while smaller rival China Unicom (0762.HK) is down 15.3 percent -- a stark reversal from 2011.
Turnover on the Hong Kong main board slumped to its lowest since January 16, while in Shanghai A-share turnover rose for a third-straight session to its highest in a week.
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