Date
23 September 2017

Hong Kong stocks post 2.9% weekly gain; ChiNext dives

Hong Kong stocks ended sharply higher Friday, helped by strong gains in China Resources Enterprise (00291.HK) and a rebound in Tencent Holdings (00700.HK).

The benchmark Hang Seng Index (HSI) closed up 231 points or 1.06 percent at 22,065. For the week, the index is up 628 points or 2.9 percent.

The Hang Seng China Enterprises Index, the main gauge for H shares, finished 1.3 percent higher at at 10,001 points.

On the mainland, the Shanghai Composite Index dropped 0.24 percent to close at 2,041 points. In Shenzhen, the ChiNext board for high-growth, hi-tech firms saw heavy losses, with its index shedding more than 6 percent over the past two trading sessions. 

Some funds were said to be selling off shares of mainland start-ups due to concerns that regulators are reopening the IPO tap there.

In Hong Kong, China Resources Enterprise ended 7.3 percent higher, making it the best performing blue chip of the day. CITIC Pacific (00267.HK) was the big blue chip loser as it plunged 4.7 percent on profit-taking following earlier gains on its parent’s plans to go public in Hong Kong.

Internet giant Tencent rebounded 2.6 percent after being sold off in the previous session on concerns over tech sector valuations.

Gaming and software plays also posted gains after losses Thursday. Boyaa Interactive International (00434.HK) ended 8.8 percent higher.

Auto plays too did well, with Brilliance China Automotive (01114.HK) gaining 7.1 percent and Guangzhou Automobile Group (02238.HK) adding 4.8 percent.

Elsewhere, Wing Hang Bank (00302.HK) surged 8.8 percent after reports that Oversea-Chinese Banking is nearing an agreement to acquire the Hong Kong-based lender after securing preliminary approval from the banking regulator.

– Contact the writer at [email protected]

RC

 

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