Both China and HK Gain In Stock Market On Monday

Hong Kong outperformed most Asian market as investors picked up oversold stocks hammered in last week's global selloff on concern over U.S. growth and an unresolved European debt crisis.

So said investors were trimming their exposure to export and shipping names with weak short- to medium-term earnings outlooks and rotating into ones with stronger earnings growth such as cement. He added that greater clarity in Europe and the United States should drive a rebound in Hong Kong stock.

Chinese cement giant, Anhui Conch Cement Co Ltd gained 4.9 percent ahead of its first-half earnings announcement expected after the market close on Monday. Chinese insurance giant Ping An Insurance (Group) Co of China Ltd was the benchmark's top percentage gainer, up 6.4 percent ahead of its first-half earnings announcement scheduled for Wednesday.

China's largest property insurer PICC Property & Casualty Co Ltd surged almost 10 percent in midday volume exceeding its 30-day average, nearing a two-week intraday high after it reported a near doubling in first-half earings

SHANGHAI UNDERPERFORMS, INDUSTRIALS LEAD

The Shanghai Composite Index edged up 0.2 percent to 2,597.9 points on Monday morning, with profit-taking in some large caps that led gains last week cutting gains in industrials, even as midday A-share turnover hit its lowest in more than a week.

Sany Heavy Industry Co Ltd was the top support on the Shanghai benchmark, while Shenzhen-listed XCMG Construction Machinery Co Ltd , with a market cap of almost $7 billion, gained 8.7 percent in midday volume almost twice its 30-day average.

(Source:reuters)