Hong Kong Stocks gain on trade-talk progress

Headline shares of the Hong Kong financial market inclined on Thursday, 13 December 2018, on tracking positive lead from Wall Street overnight and other Asian market today, after a series of developments boosted expectations that a U.S.-China trade deal could be reached in the coming months. In afternoon trades, the Hang Seng Index advanced 351.07 points or 1.34% to 26,537.78. The Hang Seng China Enterprises Index rose 158.58 points or 1.52% to 10,575.74.

Both Chinese officials and the Trump administration have made a concerted effort to convince market participants that negotiations will soon bear fruit. Chinese President Xi Jinping's government has taken steps this week to soothe the U.S., including a plan to cut tariffs on U.S. cars to 15% from 40%. China also intends to resume purchases of American soybeans soon. China said last week it would deepen reforms in the area of science and technology and put more effort into protecting intellectual-property rights.

The Chinese regime is reportedly planning to scrap an industrial policy criticized by the Trump administration as protectionist, in favor of a program more hospitable to foreign companies. The industrial planMade in China 2025″proposes to transform China into a high-tech manufacturing powerhouse by 2025, in fields including artificial intelligence, cloud computing, and big data. As per reports, China's top planning agency is preparing a new plan to replace Made in China 2025, which would play down China's bid to dominate manufacturing and allow more access for foreign firms. The new policy is set to be introduced early next year.

The move comes as the President Donald Trump and Chinese leader Xi Jinping agreed to a temporary trade truce in Argentina on 1 December 2018. The two sides are expected to negotiate over U.S. demands for stronger Chinese protections for U.S. intellectual property, an end to forced technology transfers and greater market access to China for U.S. companies.

These developments helped spur some relief buying as investors have been carefully watching the arrest, which has angered China, for signs that it could scuttle a trade cease-fire brokered last month.

NEWS FROM PRESS: China Resources Land (01109) announced that for the month ended 30 November 2018, the group achieved gross contracted sales of RMB17.53 billion, a year-on-year increase of 45.12%. The contracted GFA was 1.21 million square metres. Rental income from investment properties in November 2018 achieved RMB833 million, a year-on-year increase of 24.5%. Rental income from investment properties for the first eleven months of 2018 achieved RMB8.56 billion, a year-on-year increase of 29.8%.

Gemdale Properties and Investment Corp (00535) said its aggregate contracted sales for November 2018 was RMB5.96 billion, a year-on-year increase of 54.44%. The aggregate contracted sales area of 332,800 square metres. The average selling price was RMB17,900 per square metre. The aggregate contracted sales from January to November 2018 was RMB40.73 billion, a year-on-year increase of 1.27%. The aggregate contracted sales area was 1.86 million square metres.

OFFSHORE MARKET NEWS: US share market closed higher on Wednesday, extending a recent stretch of volatility as signs of easing trade tensions boosted the outlook for global economic growth. The Dow Jones Industrial Average rose 157.03 points, or 0.6%, to end at 24,527.27, while the S&P 500 index advanced 14.29 points, or 0.5%, to 2,651.07. The Nasdaq Composite Index climbed 66.48 points, or 1%, to 7,098.31.

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