Hong Kong stocks rise after Li Ka-shing restructures empire

Hong Kong stocks rose out of the open Monday, running in the opposite direction from most other Asian markets, as shares of two of tycoon Li Ka-shing’s major companies surged following reorganizing plans announced late last week.

The Hang Seng Index moved up 0.5%, as Cheung Kong Holdings Ltd. and Hutchison Whampoa Ltd. both controlled by Li, and both constituents of the Hang Seng — soared 14.7% and 12.5%, respectively. Li said Friday that the property assets of the companies will be carved out into a new company, to be called CK Property, while the rest of the two companies’ businesses will be listed as CKH Holdings.

Among other movers, mainland Chinese developer Greentown China Holdings Ltd. inched up 0.1%, as the company said its December contract sales climbed more than 40% from a year earlier. China Molybdenum Co. advanced 1.8%, after it forecast a 55% jump in its profit for last year. Over on the mainland, the Shanghai Composite Index fell 0.7%.

Source : MarketWatch