Update | Hong Kong stocks retreat from two-year high as StanChart slides

Hong Kong stocks closed lower on Thursday, retreating from Wednesday’s 26-month high, as Standard Chartered Bank fell for a second day amid a mixed performance by financials.

The Hang Seng Index closed down 0.3 per cent, or 76.37 points, to 27,531.01, while turnover was HK$85.54 billion (US$10.94 billion). The Hang Seng China Enterprises Index, known as the H-share index, slipped 0.5 per cent, or 53.22 points, to 11,002.2

Hong Kong stocks have advanced for three consecutive days this week as strong earnings expectations pushed up several large cap blue-chip stocks.

“The market has been very strong for the past few days. People are hesitating but they are not willing to push it lower because they are still waiting for opportunities to buy,” said Alex Wong, a director at Ample Finance Group.

Financials were mixed on Thursday, with Standard Chartered Bank losing 8.1 per cent to HK$80.90, dropping for a second consecutive day. The bank disappointed investors on Wednesday by not announcing a dividend with its 2017 interim results, despite boosting underlying pre-tax profits by 93 per cent. BOC Hong Kong fell 1.5 per cent to HK$39.25 and HSBC slipped 0.4 per cent to HK$78.25.

However mainland Chinese banks gained, with Industrial & Commercial Bank of China up 1.3 per cent to HK$5.62 and China Construction Bank adding 0.5 per cent to HK$6.59.