May 17, 2012 (Chinavestor) News that regulators will allow securities firms to expand short selling and that the government increased incentives of home appliances raised confidence on the mainland, helping the Shanghai Composite Index (SHA:000001) to rally 32.7 points or 1.4%. The advance was universal, all but two companies among the 50 largest listed in Shanghai rose for the day. But investors kept a close eye on Europe on Thursday, sending the Hang Seng Index (INDEXHANGSENG:.HSI) 58.9 points or 0.3% lower for the day.
Chinese power generators did best in Hong Kong with sall three Hang Seng components advancing over 2.5%. Huadian Power (HKG:1071) rose 4.9%, the most among components of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI). But shipping companies continued to bleed, CSCL (HKG:2866) and China Cosco (HKG:1919) fell 6.9% and 4.1%, respectively, as a trade dispute with Brazil continued.