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Yujing Liu

Deb Price

Good day, traders.
China and Hong Kong markets soared, recovering ground lost since the trade war escalated. 
Catch up on the action below. Please send any questions or feedback to deb.price@scmp.com . And welcome to our first readers from Brazil and the United Arab Emirates. 
— Yujing Liu and Deb Price
 


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Stocks

Stocks Blog: Hong Kong, China climb after Fed hints at possible rate cut ahead

Photo: Alamy 

A Chinese investor monitors stock prices at a brokerage house in Beijing on May 10, 2019. Photo: Associated Press

Hong Kong behind NYSE, Nasdaq in IPO rankings in first half of 2019 as extradition bill and trade war weigh on sentiment

Hong Kong’s Central district. Deloitte has reinforced its full-year forecast for about 200 listings in the city, raising between HK$180 billion and HK$250 billion. Photo: AFP

Hong Kong third in global IPO rankings for stock exchanges

Business

Markets

It took six weeks, but Hang Seng closes above 28,500
Markets to rise further but investors should stay alert, Everbright Sun Hung Kai's Wen says


Local markets like what they heard from the US Federal Reserve. Overnight, its chairman sent signals it is open to cutting its key rate, if needed. 


China markets

Hong Kong Stock Exchange

Live

* Overnight markets/ What futures foretell:
-- Major US indices rose overnight after the Federal Reserve signaled a more dovish interest rate outlook. The S&P 500 edged up 0.3 per cent. The Nasdaq Composite rose 0.4 per cent, and the Dow Jones Industrial Average closed up 0.2 per cent.
-- The Hang Seng futures were up 0.4 per cent in the latest trading, while the China A50 futures added 0.3 per cent.
* IPO debuts: Chinese chemicals producer Shandong Yuanli Science and Technology (603217 SH) will start trading in Shanghai today.
* Corporate events: earnings, meetings, news conferences:
-- Hong Kong cosmetics store chain Sa Sa International Holdings (0178 HK) and beverage producer Vitasoy International Holdings (0345 HK) will announce full-year results today.
* Good reads: Chinese consumers bought more domestic brands in midyear 618 shopping festival as trade war rages on, Celia Chen and Zen Soo report. Hong Kong’s stock market is expected to rank third, and Shanghai fourth, in global IPO market rankings for the first half this year, according to latest analysis by Deloitte China's National Public Offering Group, reports Enoch Yiu. 


Morning guidance 

Here's what Kerry Craig, global market strategist at J.P. Morgan Asset Management, thinks about the US Federal Reserve meeting and its implications for global and Asia markets:
“The forward guidance from the Fed was no longer about being patient but being pragmatic. As inflation is taking longer to return to target and trade uncertainty is weighing on the global outlook, the Fed is singing a dovish tune. 
" .... The ambiguity surrounding the trade narrative and the rapid deterioration in the U.S. – China relationship highlighted the difficulty for the Fed, and investors, face in gaining clarity. Business surveys and capital spending intentions have faded quickly in the manufacturing sector and there are signs that this is beginning to impact other areas of the economy. There is little harm in the Fed waiting another month to see what transpires after the G-20 meeting. 
"... For Asia markets, the Fed meeting is a positive and bond yields are likely to move lower.  However, with much of it already priced in, market moves may be muted. There is a chance that investors are getting ahead of themselves in just how far they expect the Fed to go. A single rate cut will do little to stimulate growth, and the market is unlikely to be satiated, demanding further easing. But multiple rate cuts would suggest more persistent economic weakness and a poorer outlook for risk assets. The real question is whether the Fed has created sufficient flexibility to avoid getting locked into a prolonged rate cut cycle if needed.”
 


Fed meeting 'positive' for Asia markets, says J.P. Morgan Asset Management strategist Kerry Craig  

Gold producers rallied in early trading, as spot gold price surged on the back of dovish signals from the US Federal Reserve on interest rate outlook.
Spot gold soared by 1.4 per cent to US$1,379.17 per ounce, the highest level since September 2013.
A gauge of 13 gold miners listed in Shenzhen and Shanghai climbed by 2 per cent. Gansu Ronghua Industry Group (600311 SH) rose 4 per cent, and Guangdong CHJ Industry (002345 SZ) rallied 5.6 per cent.
— Yujing Liu 


Soaring gold pushes up miner stocks

Rizhao Port Jurong (6117 HK) continued to rise today after it shot up 167 per cent from its offer price when it debuted in Hong Kong Wednesday. It was last up 18.75 per cent, sliding from an earlier jump of about 28 per cent at the open.
At one point on Wednesday, when it debuted, it was up 267 per cent.  
Located off the southern coast of the Shandong Peninsula in eastern China, the port is the country’s seventh-largest coastal port and the 11th-largest in the world, according to the company’s listing prospectus. It is the largest port in the country for importing grain and wood chips.
Stocks reporter Yujing Liu notes in an article that its mysterious price surge, given the cold response from retail investors, could be a result of the highly concentrated share holdings in the company. The 10 largest shareholders of Rizhao Port Jurong together own 97.77 per cent of the total offered shares, according to the filing.
“The real liquidity of the shares is quite low, given how concentrated the shareholding is,” said Alan Li, portfolio manager at Atta Capital, a Hong Kong-based investment firm.
Stocks with vast numbers of shares concentrated in just a few hands are prone to wild price swings.
— Deb Price 
 


Rizahao Port — stock that jumped as much as 267 per cent in debut — rising 

Chinese live streaming app operator Inke jumped by 9.5 per cent to HK$1.73 in Hong Kong, after announcing it will buy up to 206 million shares, or 10 per cent of its total issued shares, for HK$500 million.
Shares of Inke, one of the very few “new economy stocks” listed in the city, have tumbled by 66 per cent from the closing price of HK$5 on its first trading day in July 2018.
“The board believes that the shares have been trading at a level which significantly undervalues the company’s performance and underlying assets,” Inke said in a stock exchange filing last night.
“[T]he board believes that the proposed share repurchase would create capital management benefits to the shareholders,” it said.
The actual purchasing prices of the share buyback will be no more than 5 per cent higher than the average closing price in the 5 trading days before each purchase it said. The proposed HK$500 million fund divided by 206 million shares would be HK$2.43 apiece, much higher than the current price of the stock.
— Yujing Liu


Live streaming app Inke soars on share buyback plan

Geely Auto (175 HK) jumped 4 per cent to HK$13.24 in early trading.
The Wall Street Journal reported that Harley-Davidson is partnering with Qianjiang — which is majority-controlled by Geely — to build a Harley motorcycle in China. It will be the only Harley-branded motorcycle not made at a Harley facility, will be smaller than a traditional Harley but will look and sound like the iconic American motorcycle, the Journal reported.
Want Want China (151 HK)  is up 32.8 per cent to HK$6.24.
Credit Suisse raised its target price on the snack maker to HK$6.40 from HK6.20 and kept its neutral rating. Want Want reported an 11.8 per cent year-on-year increase in profit attributable to equity holders for the year ended March 31.
Meanwhile, the Hang Seng Index is up 0.8 per cent, with a number of property stocks rising.
— Deb Price 
 


 Geely shoots up after report of motorcycle to be made in China

Trading in the shares of Shandong Yuanli Science & Technology (603217 SH) were suspended, after the industrial chemicals producer soared by its 44 per cent daily price increase limit almost immediately upon debut.
Shares began trading at 65.95 yuan, compared with their initial public offering price of 54.96 yuan, before soaring by 44 per cent to 79.14 yuan. Only 33,345 shares changed hands before trading was halted, according to Bloomberg data.
— Eugene Tang


Shandong Yuanli Science & Technology soars by 44 per cent limit on debut

"The Fed’s policy outlook now appears largely in line with PIMCO’s expectations that the policy outlook is binary: If US-China trade tensions aren’t at least deescalated around the G-20 meeting or if other downside risks to the US economy materialize, we see the potential for a 50 basis point policy rate cut as early as the July 31 FOMC meeting," wrote Tiffany Wilding, US economist at PIMCO, which had US$1.76 trillion of assets under management as of March 31. "Conversely, if trade tensions improve and economic data is stable, we expect the Fed will try to delay taking any action."
"Financial conditions are back near year-to-date lows (though still meaningfully tighter versus 2018) on the back of markets already pricing in Fed rate cuts. Should the Fed fail to deliver on market expectations for cuts, we expect financial conditions to tighten materially," Wilding wrote in an e-mailed commentary. "On the other hand, if trade tensions improve and US economic data are stable, we expect the Fed to try to delay taking any action, while carefully navigating the impact on financial conditions given market expectations following the June 18–19 FOMC meeting. "That said, after the significant dovish changes at the June meeting, the Fed has limited additional tools to communicate dovishness without actually cutting going forward."


Trade talks, economic data will determine Fed's path, says Tiffany Wilding, US economist at PIMCO

Stocks related to environmental protection soared, driven by China’s intensifying crackdown on pollution.
The central government announced new guidelines on environmental protection over the weekend ahead of a new round of inspections this year, which will expand to cover government departments and central government-owned enterprises from local provinces.
In the first round of environmental protection that began in 2015, the inspectors found and solved over 150,000 environmental problems and handed out a total of 2.5 billion yuan of fines. Over 2,200 people were arrested, according to a Xinhua report.
A gauge of 11 companies in the business of soil and plant recovery advanced 3.5 per cent, with two stocks jumping by the daily 10 per cent limit — Welle Environmental Group (300190 SZ) and Yonker Environmental Protection (300187 SZ).
Seven stocks related to solid waste disposal soared by 10 per cent, including Shanghai Environment Group (601200 SH).
— Yujing Liu 


Environmental stocks outperform ahead of new round of inspections

Maoyan Entertainment (1896 HK) — China's largest online ticketing provider — was reaffirmed as a "buy" at Jefferies, with a price target of HK$19.
"Maoyan gained 10% this week in response to its eligibility for (Shanghai-Shenzhen-Hong Kong) Stock Connect and deepening cooperation with Tencent in entertainments," equity analyst Summer Wang wrote. "In our view, Maoyan is better positioned in bridging the Chinese audience to their preferred content. (Near-term) catalysts: summer holiday box office beat; margin return on larger ticket subsidy cut. (Long-term) new driver: penetration of live entertainment segment."
Wang is bullish on China box office and likes the Tencent-Maoyan strategic alliance.
"During the Shanghai Film Festival, Maoyan (14% owned by Tencent) and Tencent announced the formation of a Tencent-Maoyan alliance to deepen cooperation in (1) product connection, (2) data share, and (3) resource consolidation in China's pan-entertainment industry (not only movies, but TV dramas, live entertainment, music, and short videos, as well)," Wang wrote. 
"On ticketing, a closed-loop ticketing model will be set up across Tencent's Wechat, QQ and Tencent Video to improve user experience. On upstream, valuable real-time audience data from the Tencent-Maoyan platform will enable producers and distributors to incorporate changing and differentiated consumer tastes in a timely manner, ensuring movies stay on-trend upon debut. We believe the alliance will help Maoyan bridge a wider user base to a larger portfolio of premium content, maximizing box office and offering earnings upside in coming years riding on its scarcity value in the fragmented industry chain." 
Maoyan is up 0.9 per cent to HK$12.60.
— Deb Price 
 


Online ticketing provider Maoyan Entertainment looks like a star to Jefferies 

China traders are loving what they are hearing — the Trump-Xi phone call to restart trade talks and the Fed’s dovish hint.
The Shanghai Composite gained 2.1 per cent to 2980.04, putting it on track for its fourth straight session of gains.
The Shenzhen Component Index climbed 2.2 per cent, and the CSI 300 Index of large companies jumped by 2.9 per cent.
Blue chips, securities brokerages, environmental stocks and gold miners led the advance.
Turnover in Shanghai and Shenzhen reached 292 billion yuan (US$42 billion).
China’s largest insurer Ping An Insurance (601318 SH) gained 4.1 per cent, and the country’s second-largest liquor maker Wuliangye Yibin (000858 SZ) jumped 6 per cent.
A gauge of 39 brokerages rose 4.1 per cent, with Chinalin Securities (002945 SZ) surging by the maximum 10 per cent limit.
— Yujing Liu
 


China markets loving what they heard from Fed 

JPMorgan Asset Management recently increased holdings of Chinese software developers that are market leaders in niche sectors, said Rebecca Jiang, a portfolio manager at the asset management firm, without naming any specific names.
Meanwhile, she reduced her fund’s exposure to Chinese auto markets amid earnings downgrade as well as hardware stocks. Consumer and pharmaceutical companies are JPMorgan Asset’s long-term top holdings, she said. Jiang also said China and the US will eventually strike a trade deal, as imposed tariffs will add to pressure on US inflation and hurt American consumers and companies.
— Zhang Shidong


JPMorgan Asset adds Chinese software stocks and sells automakers

"This week marks the beginning of a new stage in the cycle not only for the Fed, but also for the European Central Bank and other emerging market central banks such as Indonesia, Russia," wrote Rick Rieder, BlackRock's chief investment officer of global fixed income, in an e-mailed commentary.
"That shift will be characterized by easier policy and broad support for maintaining the global economic expansion, with or without global trade-wars. That does not mean that we should expect to see the Fed persistently cut rates toward the zero bound, but the FOMC is more likely to begin cutting rates, and the Committee is much more tuned into the need for monetary policy help, alongside the other central banks around the world."
— Eugene Tang 


'New stage' at US Fed, says Rick Rieder at BlackRock

The two biggest uncertainties that the market was worried about – the proposed US tariffs on US$300 billion of Chinese goods and the tightening liquidity among financial institutions – are gradually fading away, Guosheng Securities says.
“At least in the short term, things are all headed in the good direction. We see no obvious short-trade signals,” analysts led by Zhang Qiyao wrote in a report Wednesday.
The positive developments include the restarting of trade talks, loosening monetary policies globally, stabilising yuan exchange rate, and the end of a seasonal liquidity crunch by late June, according to the report.
Guosheng Securities also said it does not see obvious reasons for short trades before companies’ mid-year results come out in about a month.
— Yujing Liu 


Market worries fading, says Guosheng Securities

Trade tensions between the US and China were rocket fuel for rare earths. Now — after the big Xi-Trump "let's talk trade" phone call — Chinese shares linked to them are doing hard shift into reverse.
A gauge of 24 stocks in China related to rare-earth magnets dropped 1.1 per cent, while a gauge of five rare-earth miners declined 2.7 per cent.
Suddenly, the stock that everybody wanted is the one traders are fleeing. They had become a hedge for traders amid souring relations between the world's top economies.
JL Mag Rare-Earth (300748 SZ), the company visited by Xi Jinping last month that put a global spotlight on the metals used in everything from iPhones to missiles, was down 3.7 per cent. 
China Minmetals Rare Earths (000831 CH) fell 4 per cent. China Northern Rare Earth Group High-Tech (600111 CH) lost 1.8 percent. Xiamen Tungsten (600549 CH) fell 1.6 per cent.
In Hong Kong, China Rare Earth (769 HK) was down 3.3 per cent.
— Deb Price and Yujing Liu  
 


Traders bailing out of rare earths as US-China trade relations perk up   

The Shanghai Composite Index jumped 2.6 per cent to 2,992.99, almost touching the 3,000-point level that has been a significant resistance level since trade tensions revived in early May.
The Shanghai benchmark soared to an intraday high of 2,994.48 points, the highest intraday level since April 30.
The Shenzhen Component Index climbed 2.7 per cent, and the CSI 300 Index of large companies advanced 3.3 per cent. A net total of 6.7 billion yuan flowed into the A-share market through the Stock Connect programme.
Financial stocks led the advance, with brokerages and banks shooting up on optimism that regulators are stepping up support for interbank liquidity after the takeover of the troubled lender Baoshang Bank.
A gauge of 39 securities brokerages jumped 7.5 per cent.
Chinese liquor makers surged too, with Wuliangye Yibin (000858 SH), the industry’s no. 2 player, soaring 6.1 per cent to a historic intraday high of 112.35 yuan.
— Yujing Liu 


China stocks set to recover lost ground since re-escalation of trade war

The Hang Seng Index rose 1 per cent to 28,486.39 by the noon break, after reaching an intraday high of 28,495.57, the highest intraday level since May 10.
Insurers advanced broadly, as investors expect them to record better investment returns after China stocks soared in the morning session. Ping An Insurance (1299 HK) gained 1.8 per cent, while China Life Insurance (2628 HK) rose 3.3 per cent.
Live streaming app operator Inke (3700 HK) extended gains to 13.3 per cent, after announcing a HK$500 million share buyback plan.
— Yujing Liu 


Hong Kong stocks gain on stronger rate cut outlook

That high-flying Chinese port stock that debuted Wednesday is crashing today.
Rizhao Port Jurong (6117 HK) was down 5.5 per cent at the lunch break.
At one point on Wednesday, when it debuted, it was up 267 per cent.  
— Deb Price 
 


Rizhao Port springs a big leak

Investors in mainland China can buy shares of the first stock to be listed on the new technology innovation board in Shanghai starting from June 27, according to the Shanghai Stock Exchange.
The bourse operator has invited all market participants to take part in a test run of the share offering system on Saturday, it said in a statement today.
The new “STAR Market” is the latest effort by Chinese regulators to create opportunities for domestic investors to share the success of homegrown tech innovators, many of whom chose to list in the US in the past.
Eventually, some of the shares will be available to northbound traders on the Shanghai-Hong Kong Stock Connect.
— Yujing Liu


First Shanghai tech innovation board share offering to start June 27 

Cosmetics store chain Sa Sa International Holdings (178 HK) soared by 10 per cent to HK$2.43 in Hong Kong, after reporting better-than-expected annual results.
Net profit for the year ended on March 31 rose 7 per cent to HK$471 million, beating the consensus of HK$467 million by analysts polled by Bloomberg.
Retail sales increased by 19 per cent in the first half of the financial year and 28 per cent in the second half.
“The Group’s effective product strategy was the key contributor to the first quarter’s steady sales performance. Meanwhile, the development of the Greater Bay Area led to the rapid growth of same-day mainland tourists to Hong Kong and Macau, boosting the number of transactions from mainland customers,” the company said in a stock exchange filing.
— Yujing Liu


Sa Sa takes off on bright annual results

Food delivery platform operator Ele.me accused rival Meituan Dianping (3690 HK) of stealing commercial data, according to Chinese media, filing a police report.
A phone call to Meituan for comment was not immediately returned.
The market regulator in Zibo, Shandong province found a vast amount of Ele.me customers and transaction data in the computers of Meituan Dianping’s employees during an investigation, according to a report by news portal 163.com.
Ele.me enjoys 47 per cent of the food delivery market in China’s big cities while Meituan Dianping owns the rest, according to an April report by consultancy iiMedia Research. The firm was acquired by Alibaba Group – which owns the South China Morning Post – in April 2018.
Shares of Meituan Dianping shed 0.5 per cent to HK$62.15 in the latest trading.
—  Yujing Liu


Ele.me accuses rival of data theft

Inner Mongolia Yili Industrial Group (600887 SH), China’s largest dairy company, accused rival China Mengniu Dairy (2319 HK) of unfairly gaining the sponsorship of the Olympic Games in a public statement today.
Yili said after it won a tender to become the exclusive dairy products sponsor for the 2022 Winter Olympics, Mengniu collaborated with global beverage giant Coca Cola and secured a joint sponsorship agreement for beverages with the International Olympic Committee, which compromised Yili’s exclusive sponsorship.
Shares of Yili gained 2.7 per cent in the latest trading. Mengniu dipped 0.2 per cent.
Calls to Yili and Mengiu were not immediately returned.
— Yujing Liu 
 


Dairy giant Yili accuses rival of unfair play with Olympics sponsorship

The run-up in Chinese stocks today — a gain of 2.4 per cent — isn't likely to continue for long, warns Louis Tse Ming-kwong, managing director of brokerage VC Asset Management.
Traders felt generally euphoric: The US Federal Reserve signalled that it is open to cutting rates; and, more importantly to Chinese investors, presidents Donald Trump and Xi Jinping agreed to talk trade next week in Japan at the G20 summit. 
But there remains tremendous uncertainty around the relations of the world's two largest economies, he said. 
“Given that we don’t know the outcome of these talks, it could [take] a couple of months,” Tse said.
Meanwhile, some of the gains are due to portfolio managers rebalancing their stocks ahead of the end of June, which marks the six-month period of the year. It's known as “window dressing,” when managers want to dump losing stocks and buy winning stocks to look better to their clients.
Hong Kong market tends to react more sensitively to any Fed rate signals. But the Hang Seng is being held back today because of technical indicators, Tse said. It was last up 1.4 per cent.
“The 10- and 20-day moving average have yet to breach the 250-day moving average, meaning there’s quite a bit of pressure there,” he said.
The Hang Seng is on track to close above the key resistance level of 28,500. It was last trading at 28,548.17.
Its recent low was 26,761.52 on June 4. It last closed above 28,500 on May 10, when it ended at 28,550.24. 
— Daryl Choo
 


Hang Seng on way to closing above 28,500 —  first time in nearly 6 weeks

The leaders of the US and Chinese trade negotiation teams will communicate and make preparations for the meeting between presidents Xi Jinping and Donald Trump during the G20 summit that will be held in Japan next week, a spokesman for China’s commerce department said.
China firmly opposes the proposal by the US government to impose tariffs on US$300 billion Chinese imports, and hopes the US “will create an atmosphere necessary for an equal dialogue to solve problems,” spokesman Gao Feng said.
— Yujing Liu


US, China trade representatives to prepare for G20 meeting

Hints of interest rate cuts by the Federal Reserve have taken off some downward pressures on the Chinese yuan and have boosted investors’ mood, according to Kenny Wen, wealth management strategist at Hong Kong brokerage Everbright Sun Hung Kai.

“The market is likely to continue rising for a bit because investors are really buying instead of taking quick profits, and the sentiment has improved a lot,” he said.
But Wen also said investors should be cautious if the Hang Seng Index rises above 29,000 points, or 3,000 points for the Shanghai Composite Index, because trade talks still involve much uncertainties, even with presidents Donald Trump and Xi Jinping planning to meet during the G20.

China’s inflation rate is also a risk factor, he said. If inflation gets out of hand because of rising pork and vegetable prices, the central bank may be forced to give up monetary easing policies that could boost the market.
-- Yujing Liu 


Markets to rise further but investors should stay alert, Everbright Sun Hung Kai's Wen says

The Shanghai Composite Index closed up 2.4 per cent, to 2,987.12, marking its fourth-straight day of gains.
The benchmark was at its highest level since April 30. Turnover in Shanghai and Shenzhen reached 603 billion yuan, higher than the daily average of 492 billion yuan recorded in May.
All sectors were up, with the leading gainers being financials and consumer staples, both up at least 3.3 per cent, followed by real estate, which was up 2 per cent.
Of stocks on the benchmark, 1,312 ended up ahead, while only 173 fell and 28 were unchanged.
Twenty four stocks either hit the 10 per cent upside limit or were right at it. 
Pharmaceutical, heavy manufacturing, brokerage and environmental protection shares did well. 

The CSI 300 of large stocks on the Shenzhen and Shanghai markets rose 3 per cent. The Shenzhen Composite Index rose nearly 2 per cent, with financials up 5.4 per cent, followed by energy-linked stocks, up 3.2 per cent. 
-- Deb Price  
 


Chinese stocks soar on improving sentiment

The Hang Seng finally did it, after six weeks of hand wringing about trade and tech battling between the US as well as concerns about global growth. 
The benchmark ended at 28,550.43 points, with a gain of 1.2 per cent.
It last breached 28,500 on May 10, when it closed at 28,550.24.
All sectors were up, but health care did especially well, gaining 2 per cent, following by consumer discretionary, up 1.7 per cent. Real estate was up  1.4 per cent.
Geely Auto (175 HK) was the leading gainer on the Hang Seng, jumping 4.9 per cent.  
Harley-Davidson is partnering with Qianjiang — which is majority-controlled by Geely — to build a Harley motorcycle in China, according to the Wall Street Journal. It will be the only Harley-branded motorcycle not made at a Harley facility, will be smaller than a traditional Harley but will look and sound like the iconic American motorcycle.
Other big gainers included Ping An Insurance Group (2318 HK), which rose 3.7 per cent, and China Life Insurance (2628 HK), which was up 3.3 per cent. 

 
-- Deb Price 


It took six weeks, but Hang Seng closes above 28,500

“Future direction of fund flows has become more uncertain in view of the increased uncertainties in the Fed’s monetary policy direction," said the Hong Kong Monetary Authority's chief executive officer Norman Chan Tak-lam, after the city's de facto central bank kept rates unchanged in lockstep with US monetary policy.
"The public should stay vigilant in managing the potential risks arising from market volatilities.”
 


Stocks Blog: Hong Kong, China climb after Fed hints at possible rate cut ahead

It took six weeks, but Hang Seng closes above 28,500 Markets to rise further but investors should stay alert, Everbright Sun Hung Kai's Wen says

It took six weeks, but Hang Seng closes above 28,500

Markets to rise further but investors should stay alert, Everbright Sun Hung Kai's Wen says