Hong Kong Stocks Edge Higher As Tencent Advances

HONG KONG Hong Kong stocks nudged higher Wednesday morning, with the Hang Seng Index up 0.2%. Index heavyweight Tencent Holdings Ltd. advanced 1.1%, after losing the ground the previous session. Reports the previous day said Taiwan's Hon Hai Precision Industry Co. would partner with Tencent and Chinese auto dealer China Harmony Auto Holding Ltd. to work on smartcars and electric vehicles. However, Agricultural Bank of China Ltd. fell 0.8% after the bank reported its 2014 net profit increased by a less-than-expected 8%. Bank of China Ltd. also edged down 0.2% ahead of its earning results slated for later in the day. Most other Chinese banks declined, as China Minsheng Banking Corp. dropped 1%, China Citic Bank Corp. lost 0.7%, and China Construction Bank Corp. moved down 0.5%. China Life Insurance Co. declined 1.4% despite posting a 30% jump in its earnings for last year. Among those stocks due to announce results on Wednesday, New China Life Insurance Co. shed 1.6%, and dairy-product producer China Mengniu Dairy Co. retreated 1% after regional rival Fonterra Co-Operative Group Ltd. of New Zealand reported a drop in six-month profit. Aluminum Corp. of China Ltd. (also known as Chalco) gave up 0.8%, and Hong Kong-based lender BOC Hong Kong Holdings Ltd. [HK:2388] traded 0.2% lower. Also on the move, Hong Kong conglomerate Hutchison Whampoa Ltd. gained 1.2%, after confirmation of its reported deal to acquire U.K. mobile operator O2 from Spanish telecoms firm Telefonica SA. Over on the Chinese mainland, the Shanghai Composite Index pulled back by 0.6% after 10 straight days of gains.