HK stocks close up as China inflation within 'comfortable range'

Hong Kong stocks rose 314.61 points, or 1.29 percent, to close on Monday at 24,646.02 points, after the mainland inflation data signaled policy makers still have room for monetary easing amid a lack of pressure on prices.

The benchmark Hang Seng Index traded between 24,671.33 and 24, 491.02. Turnover totaled 65.71 billion HK dollars (8.48 billion U. S. dollars).

China's consumer price index (CPI), a main gauge of inflation, grew 2.3 percent year on year in July, the same pace as a month earlier, official data showed on Saturday.

The growth rate was also the same as that of the first half of this year, showing stable pricing in the world's second-largest economy, according to the National Bureau of Statistics (NBS).

Analysts said the July inflation was "in a very comfortable range" and the government is not likely to loosen up on its monetary policy in the latter half.

The Hang Seng China Enterprises Index ended up 205.22 points, or 1.89 percent, to close at 11,037.88 points.

All of the four sub-indices gained ground. The Properties and Commerce& Industry sub-indices grew 2.26 percent and 1.04 percent respectively. The Utilities and Finance rose 0.46 percent and 1.41 percent respectively.

Blue chips led the rally. China Resources Land Limited surged 5. 7 percent to 17.8 HK dollars. Henderson Land Development Company Limited gained 4.75 percent to 49.6 HK dollars.

Cheung Kong (Holdings) Limited rose 2.7 percent to 143.7 HK dollars. China Life Insurance Company Limited was up 2.67 percent to 23.1 HK dollars.

Among all those traded in local bourse, only one stock -- Tingyi (Cayman Islands) Holdings Corp. dropped by 0.45 percent to 22.3 HK dollars.