Update | Hong Kong, mainland stocks close higher as Beijing economic plan boosts sentiment
Hang Seng Index ends up 0.18 per cent at 23,596, while the Hang Seng China Enterprises index gains 0.26 per cent to 10,171
Mainland stocks ended higher on Monday after the Chinese government vowed to support innovation and carry forward economic reforms at the opening of its annual parliamentary meeting.
Hong Kong closed marginally higher with the almost-certain prospect of an interest rate rise in the US weighing on the city’s property giants.
The Hang Seng Index closed up 0.18 per cent, or 44 points, to 23,596 on Monday, while the Hang Seng China Enterprises index gained 0.26 per cent, or 27 points, to 10,171.
Rate-sensitive property shares were hurt by concerns that the upcoming US interest rate rise will hurt Hong Kong’s real estate market. Cheung Kong Property fell 0.87 per cent to HK$51.1 while Sun Hung Kai Properties shed 0.89 per cent to HK$112.0.
US Federal Reserve Chair Janet Yellen dropped her biggest hint yet last Friday that the central bank will raise interest rates at its next meeting on March 14-15.
“Faster rate hikes are good news for the US market, because it shows the Fed is confident about its domestic economy,” said Hannah Li, an analyst for UOB Kay Hian.