Hong Kong Stocks Add To Recent Gains As Banks Rise

Hong Kong stocks edged higher Wednesday morning, adding to recent gains. The Hang Seng Index moved up 0.2%, poised to rise for a third straight day. China's major electrical appliance retailer Gome Electrical Appliances tumbled 3.3%, after the company said it would purchase a 5.4% stake in Chinese lender Huishang Bank Corporation Ltd. for over 24 billion Hong Kong dollars ($3.1 billion). Huishang Bank rose 0.6%. Major Chinese banks mostly advanced, with China Merchants Bank Co., Ltd. adding 1.5%, Agricultural Bank of China Ltd. up 1.4%, and China Citic Bank Corporation Ltd. higher by 1%. Several index heavyweights notched modest gains, as Sino-British banking giant HSBC Holdings plc improved by 0.5%, and both Chinese online major Tencent Holdings Ltd. and telecoms giant China Mobile Ltd. traded 0.3% higher. Over on the Chinese mainland, the Shanghai Composite Index slipped 0.2%.