February 17, 2012 (Chinavestor) Stocks surged in Hong Kong on the back of a sound U.S. rally but investors locked in profits in Shanghai on Friday. The Hang Seng Index (INDEXHANGSENG:.HSI) advanced 214.3 points or 1.0% on Friday, registering the seventh weekly gain in a row, the longest run since November 2010. China Life Insurance (HKG:2628), a stocks sensitive to market sentiment, rose 3.5%. Chinese insurers derive over 10% of their profit from investment related services, a particularly market sensitive area. Mainland listed A shares of the company (SHA:601628) rose 1.8%, the most among the 50 largest components of the broad Shanghai Composite Index (SHA:000001).
The Shanghai Composite Index (SHA:000001) rose a mere 0.3 points on Friday capping weekly gains of 6.2 points or 0.3%.
On the corporate front, Baidu.com Inc. (NASDAQ:BIDU) reported better than expected fourth quarter results. Baidu.com (NASDAQ:BIDU) is the largest NASDAQ listed Chinese company and may lift other Chinese internet stocks on its back.