(Chinavestor, June 20 '09) China stocks soared in Shanghai to new 52 week high on Monday while the Hang Seng index rose above 19,000 for the first time in 2009. Earnings prospects and improved outlook combined with ample liquidity keeps the Shanghai Composite rising. Hong Kong investors got a boost from improved American corporate earnings luring risk takers back to the bourse. The Shanghai Composite rose 77.18 points or 2.4% to 3,266.91, a new high for the index in 2009. The Shanghai Composite Index <.SSEC> is up 75% YTD, making it the best major stock index in the world.
Hong Kong's barometer, the Hang Seng Index <.HSI>, advanced 696.71 points or 3.7% to 19,520.37, a record for 2009. Forty two stocks gained out of the forty four member index, only Huadian Power and China Eastern Air declined on Monday. Ping An Insurance (2318.HK) (601318.SS) advanced the most by jumping 10.3% following allegations that net income will double, thanks to strong investment gains related to the Shanghai Composite. But China Life (601628.SS) (LFC) (2628.HK) has been underdog in the last four days as premium income growth was just average. And while Ping An has a low comparative earnings base after huge Fortis investment related losses, China Life had a strong 2008 and 2009 Q1, rendering latest gains less impressive.