Kenny Tang Strong Quotations

Investors are buying property shares ahead of results. Most expect the results to be strong on the back of contributions from new (property) developments which should have contributed to earnings in the six months to December.

The main contributor to the index was China Mobile. The strong sentiment for the stock spilled over to other blue chips and helped the index breach the 16,000 points level.

The move came as a surprise to the market. I believe that China wants to send a strong signal that it is serious in keeping economic growth in check.

The developer has benefited from a strong property market last year but the sales growth may slow down this year because of rising interest rates.

The risk of a further slump of Hong Kong stocks is not great, as there is no evidence there are capital outflows in the region. Strong support remains at the mid-February low of 15,241.

There's some consolidation pressure after two days of strong gains.