Hang Seng climbs for 6th year

HONG Kong stocks lifted the benchmark to its sixth year of gains, sealing the gauge's best annual performance since 1999, on the last trading day of 2007.

Property stocks led advances on speculation the United States will cut interest rates next month.

Sun Hung Kai Properties Ltd, Hong Kong's largest developer, paced advances among property stocks, the best-performing group on the index last year. Hong Kong banks typically move interest rates in step with the US as the city's currency is pegged to the US dollar. Lower borrowing costs spur real estate purchases.

"The fundamentals of property stocks are still very strong," said Nancy Lee, who helps manage about US$200 million at Taifook Asset. "They will continue to benefit from strong demand for property and lower interest rates."

The Hang Seng Index added 442.05, or 1.6 percent, to close at 27,812.65 in 2007. The measure has risen 39 percent last year.

The Hang Seng China Enterprises Index, which tracks 43 "H shares" of Chinese companies, added 0.8 percent to 16,124.72.

The Hang Seng Property Index, which tracks six of the city's biggest developers, soared 65 percent, its best annual return since 1994, the earliest figure recorded by Bloomberg News.

Sun Hung Kai rose HK$6.60, or 4.2 percent, to HK$165.60 (US$21.23). Cheung Kong Holdings Ltd, the builder controlled by billionaire Li Ka-shing, advanced HK$6.60, or 4.8 percent, to HK$144.20, its biggest gain since November 26. Hang Lung Properties Ltd, Hong Kong's No. 4 developer, jumped HK$1.90, or 5.7 percent, to HK$35.30.

Wharf Holdings Ltd jumped HK$1.60, or 4.1 percent, to HK$40.85 after its unit Harbour Centre Development Ltd acquired a building site in the Chinese mainland city of Changzhou for 1.47 billion yuan (US$200 million) in an auction.

CNOOC Ltd, China's biggest offshore oil producer, rose 40 cents, or 3.1 percent, to HK$13.28.