Bank of Communications gained 2% to HK$10.06 and China Construction Bank rose 3.33% to HK$6.52.

Properties gained as well. Sun Hung Kai Properties climbed nearly 2.9% to HK$133.20, Sino Land increased 3.85% to HK$18.90 and China Overseas Land gained 4.05% to HK$15.40.

CNOOC advanced 2.7% at HK$12.22 and PetroChina gained 2.35% to HK$10.44 after crude oil prices rose by $4 yesterday on rising demand.

However, Air China declined 3.4% to HK$6.78 on profit taking and rising crude oil prices.

China Shipping edged up 9.3% to HK$3.53 after net earnings jumped four-fold to Rmb3.2 billion.

Zijin Mining Group jumped nearly 4.7% to HK$7.17 as it obtained final regulatory approval to launch a Shanghai initial public offering next week.

Merrill Lynch to expand in China

Xinhua News Agency also reported that Merrill Lynch Chief Executive Officer John Thain said the broker will expand in China.

“Sixty percent of our revenues are already generated overseas and we see the best growth opportunities in those rapidly growing economies in the world, such as in India, Russia, China, Brazil, in the Middle East, these are rapidly growing economies. There is a great need of capital, these are also creation of great wealth, (and) our ability to provide wealth management expertise is particularly valuable”, said Thain.

Merrill Lynch is expected to report a large asset write-down related to leveraged loans and subprime housing loans in the first quarter of 2008.