Hang Seng Index closed up 0.9% at 20,264. HSCEI surged 1.7%, partly stimulated by a 2.1% rise in the Shanghai stock market. Heavily weighted HSBC (5) and China Mobile (941) added 0.2%-0.3%. BOC Hong Kong (2388) advanced 1.8% with 9-day RSI at 82. Hong Kong property companies ended higher led by Hang Lung Properties (101). Tencent (700) fell 1.4% making it the worst performing index stock. Three largest Chinese banks rose 0.5%-1.8% but Agricultural Bank of China (1288) was flat. Cement, automobile, pharmaceutical, coal, steel and non-ferrous metal stocks outperformed the HSCEI. Sinopharm (1099), Zijin Mining (2899) and China Longyuan (916) jumped 6.2%-9.6%. BYD Company (1211), Dongfeng Motor (489), Anhui Conch (914), CNBM (3323) and Angang Steel (347) soared 3.9%-5.9%. Ten largest PRC property developers, except for Longfor Properties (960), climbed an average of 3.6% betting on relaxation of the austerity measures in China .

Luk Fook (590, $10.36) 6M Target $13.0 BUY