HK shares rally, Chinese Estates surges

Hong Kong shares rallied more than one percent at the open of business on Thursday, in part on news that US lawmakers were edging towards a deal to raise the country’s borrowing limit and avert a catastrophic default.

The Hang Seng Index jumped 1.56 percent to 24,339.

Shares of Chinese Estates Holdings, a former major shareholder of embattled developer China Evergrande, jumped by 27.9 percent on Thursday after it announced an offer to take the company private for HK$1.91 billion.

The Hong Kong developer said it had proposed to be taken private by Solar Bright, backed by the family of Chinese Estates biggest shareholder, by offering minority shareholders HK$4 apiece.

The stock opened at HK$3.71.

Mainland markets were closed for a holiday. (AFP/Reuters)