6:00AM New York, 6:00 PM Hong Kong – Hong Kong stocks rebounded for the second day in a row on rising commodities prices in the region and interest in banks and financial sector stocks.

Market Sentiment

In Hong Kong trading Hang Seng Index gained 1.64% or 392.20 at 24,264.63, while the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, rose 2.58% or 330.22 at 13,137.57.

In Shanghai trading CSI 300 Index rose 2.90% or 102.72 to 3,650.70.

Daily turnover on main-board was HK$91.50 billion compared with HK$114.7 billion yesterday.

The markets will be closed tomorrow for the Ching Ming holiday.

ADB forecasts Hong Kong economic growth of 4.5%

Xinhua News Agency reported today that the Asian Development Bank that Hong Kong’s economy will grow 4.5% in 2008, with an inflation rate of 3.4%.

ADB in the report Asian Development Outlook 2008 also expects domestic demand to remain strong in 2008, while merchandise exports are likely to weaken because of slower growth on the Chinese mainland, decline in the United States and a strong yuan.

Economic growth of the southern Chinese special administrative region will rise to 4.8% in 2009, with inflation declining to 2.8%.

According to the report, rising food prices and rents will drive inflation in 2008. However it notes that shortage of skilled labor and aging population were major development challenges for Hong Kong.

Property prices still high

China Daily reported today that commercial apartment sales in Shanghai rose 14% from March 17 to March 23 to 5,260.

Also the central bank''s first-quarter survey of residents in 50 Chinese cities showed that 14.6% plan to buy homes in the next quarter, a decline of 1.3% from last quarter and 1.9% year-on-year.

Of the seven big cities surveyed, Shanghai saw the most distinct percentage fall in homebuyers for the next quarter, down to a record-low 4.3%.

""Property prices in Shanghai have shown signs of recovery this month, as huge demand still exists in the city,"" Zhang Qi, an analyst at the China Real Estate Index System, said.

Separately, the National Development and Reform Commission reported that Shanghai property prices were stable in February from January and up 9.8% from 2007.

Gainers & Losers

Financial and realty stocks advanced after private report on employment in private sector showed that companies added 8,000 jobs in March, when economists were expecting a decline. Separately the Fed chairman Bernanke said that the U.S. economy may shrink in the first half of this year and conditions for the economy are likely to improve in the second half of this year.

Ping An Insurance Co Ltd rose 7.4% to HK$63.05 after it concluding a deal with Belgian-Dutch financial group Fortis to set up a tie-up in global asset management. China Life also jumped 4.23% at HK$29.60.