Hong Kong Stocks Rebound from One-Month Low; Sinopec Gains

Hong Kong's Hang Seng Index rose, rebounding from a one-month low as investors judged recent losses excessive. China Petroleum & Chemical Corp., the nation's largest oil refiner, and Sun Hung Kai Properties Ltd. led gains.

``There are funds starting to buy,'' said Steven Leung, a Hong Kong-based director of institutional sales at UOB-Kay Hian Ltd. ``Investors aren't really worried about the long term. The market is staying firm at this level.''

GCL-Poly Energy Holdings Ltd., which operates co-generators of power and steam in China, and Chinese developer Zhong An Real Estate Ltd. climbed on their debut. Cnooc Ltd. led oil producers lower after crude prices dropped.

The Hang Seng Index added 137.62, or 0.5 percent, to 27,803.35, after sliding as much as 2.6 percent. The benchmark, which yesterday posted its lowest close since Oct. 4, has slumped 11 percent this month.

The Hang Seng China Enterprises Index, which tracks 43 so- called H shares of Chinese companies listed in Hong Kong, climbed 0.2 percent to 16,695.08.

Shares dropped earlier on concern China will raise interest rates for the sixth time this year after a government report showed inflation accelerated to a decade-high last month. Consumer prices rose 6.5 percent from a year earlier, exceeding the 6.3 percent median estimate in a Bloomberg News survey of economists.

``There are concerns about factors such as the global growth outlook and China raising rates,'' said Pauline Dan, who helps manage $2.5 billion at Manulife Asset Management in Hong Kong. ``We've been raising our cash level by reducing some of our stock holdings over the past three to four weeks.''
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