[R]7:00 PM Hong Kong, 7:00 AM New York – In Hong Kong and Shanghai real estate developers, bank and resource stocks rallied as retail investors bid up stocks. Ample liquidity in the financial system is stoking investor risk appetite. China State Construction receives bids more than 35 times its initial public offering size.[/R]

Stocks in Shanghai and Hong Kong closed higher on ample liquidity, speculation linked to recent IPOs and a rise in commodities. Retail investors have returned to the market that in turn has driven benchmark index to one-year high and several smaller stocks to lofty valuations.

Hang Seng index in Hong Kong increased 569.53 or 2.96% to 19,817.70 and CSI 300 index in China higher 45.04 or 1.25% to 3,651.97.

Chinese state and central government are providing liquidity and supporting state spending to sustain economic growth.

Gainers & Losers

Real estate developers, resource stocks and banks closed higher.

Jiangxi Copper surged 3.1% to 45.73 yuan and Yunnan Copper soared daily limit of 10% to 28.82 yuan. China Shenhua Energy Company Limited increased 2.8% o 37.72 yuan.

China Minsheng Banking Corp increased 4.6% to 8.79 yuan and China Construction Bank added 1% to 6.12 yuan.

China State Construction Engineering’s initial public offering attracted 36 times the offer size. The company attracted 1.8 trillion yuan or $263 billion according to Bloomberg News.

China Petroleum & Chemical Corp increased 3.1% to 13.79 yuan on the speculation that the earnings may be ahead of expectations.

Shipping companies declined after freight rate index fell in London. Cosco Shipping Company decreased 1.7% to 12.12 yuan and China Cosco Holdings decreased 1.2% to 17.47 yuan.

Sun Hung Kai Properties Ltd increased 3.7% to HK$110.70 after the exchange changed the margin requirements for trading.

Swire Pacific Limited added 3.5% to HK$16.26 and Wharf Holdings surged 5.8% to HK$35.55.

HSBC Holdings plc increased 2.7% to HK$72.10.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 69.78 or 0.72% to 9,792.94, Hang Seng index in Hong Kong increased 569.53 or 2.96% to 19,817.70 and CSI 300 index in China higher 45.04 or 1.25% to 3,651.97. ASX 200 index in Australia decreased 4.40 or 0.11% to 4,064.10. The FTSE Bursa KL Composite index in Malaysia closed higher 3.45 or 0.30% to 1,152.15.

The Kospi Index in South Korea increased 2.45 or 0.16% to close at 1,496.49. SET index in Thailand closed higher 13.97 or 2.34% to 612.19 and JSE Index in Indonesia increased 35.10 or 1.65% to 2,160.72. The Sensex index in India increased 387.92 or 2.61% to 15,231.04.