Hong Kong shares advance on expectations of cross-border trading connect, Shanghai shares end little changed
Hang Seng Index tacks on 0.9 per cent, while Shanghai Composite slips 0.05 per cent
Hong Kong stocks surged on Friday afternoon on media report that a Shenzhen stock connect is around the corner, while mainland shares ended flat, chalking up the sixth weekly loss in a row—the longest in four years.
The Hang Seng Index climbed up 0.88 per cent, or 179.66 points, to 20,576.77, the highest since May 3. The Hang Seng China Enterprises index gained 0.81 per cent, or 69.09 points, to 8,595.28. Trading turnover in Hong Kong reached HK$55.52 billion.
In the mainland, the benchmark Shanghai Composite Index dropped 0.05 per cent, or 1.4 points, to 2,821.03 while the CSI 300 — which tracks the largest companies listed in Shanghai and Shenzhen — fell 0.06 per cent, or 1.71 points, to 3,062.5.
The Shenzhen Composite Index lost 0.1 per cent or 1.89 points to 1,807.04 and the Nasdaq-style ChiNext slipped 0.77 per cent, or 16.12 points, to 2,069.89.
Trading turnover in Shanghai and Shenzhen was a relatively low 378.4 billion yuan. .
Local newspaper Hong Kong Economic Times reported that the Hong Kong bourse may soon expand the quota for southbound trading under the Shanghai Hong Kong Stock Connect, given that the original quota would be filled in three and half months. It also cited an analyst as saying that Beijing next week may announce the debut of the Shenzhen stock connect on July 1.