Hong Kong stock market starts the week flat – TheStreet.com

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Hong Kong stocks climbed during a heavily-traded morning session on Monday, driven by expectations that some of the largest listed companies will report strong profits this week. The Hang Seng Index rose 0.57 per cent, or 138 points, to 24,448 at the midday close, and the Hang Seng China Enterprises index climbed 0.57 per cent, or 60 points, to 10,573. Market turnover hit HK$56 billion, with software being the most traded sector. China Shenhua Energy, the country’s biggest coal miner, surged 16.04 per cent to HK$19.10 after it posted its first profit growth in four years on Monday morning and offered a special dividend of 2.51 yuan per share. Hannah Li, a strategist at UOB Kay Hian, said investors are becoming optimistic as a group of blue-chip companies prepare to report their earnings this week. “The market is extremely active this morning,” Li said. “A large amount of capital is flowing into sectors with good fundamentals, such as tech, coal mining and telecommunication.” Tencent, which is due to post its results for 2016 on Wednesday, rallied 2.16 per cent to HK$226.8, while China Mobile rose 3.39 per cent to HK$90.1 ahead of its earnings report on Thursday. Beauty app maker Meitu was up 13.61 per cent to HK$20.45 following an 11-day winning streak. The company will report its profits on Friday. Among losers, footwear retailer Belle International dropped 4.61 per cent to HK$5.17 after warning of a 15 to 25 per cent drop in last year’s profits in a statement on Monday.