You are here

Hong Kong: Stocks end higher, Mengniu up after Danone deal


[HONG KONG] Hong Kong shares ended higher on Friday, reflecting strength in the Chinese market and greater risk appetite after strong US growth data, leaving the market with its biggest monthly gain since July.

The Hang Seng Index closed up 1.3 per cent at 23,998.06, and the China Enterprises Index of the leading offshore Chinese listings in Hong Kong rose 1.2 per cent.

For the week, the blue chip index was up 3.0 per cent, its biggest gain in 14 weeks, and the H-shares index was up 3.5 per cent, its best performance in eight weeks. Both indexes added more than 4 per cent in October.

The consumer goods sector was lifted by Mengniu Dairy after Danone SA announced that it would buy a 25 per cent stake in Mengniu's Yashili International Holdings Ltd for US$550 million.

Mengniu shares climbed 2.2 per cent to their highest close in six weeks. China Modern Dairy Holdings rose 1.8 per cent.

Yashili shares reversed an early gain and were down 9.2 per cent in their biggest daily decline since March 25.