Update | HK stocks end flat after China eases financial industry access for foreign investors
Shares of mainland Chinese banks and insurers diverge, after China said it will foreigners to own a majority stake in joint ventures with domestic securities firms and life insurance companies
Hong Kong stocks were little changed on Friday, but posted the biggest weekly gain in five weeks, as Chinese banks fell and insurers rose after China said it will substantially ease foreign access to its financial industry.
The Hang Seng Index edged down 0.1 per cent, or 15.65 points, to 29,120.92 on Friday. The benchmark index made a weekly gain of 1.8 per cent, or 517.1 points, the best weekly performance since October 9, as it hit fresh 10-year highs twice this week.
The Hang Seng China Enterprises Index, known as the H-share index, was up 0.01 per cent, or 1.27 points, at 11,745.81. Turnover stood at HK$110.45 billion.
Foreign companies will be allowed to own a majority stake in joint ventures with mainland Chinese securities firms and life insurance companies, China’s deputy finance minister Zhu Guangyao said on Friday.
The country will open the country’s financial services sector to foreign players almost entirely in the next five years, Zhu said.
Shares of mainland Chinese banks and insurers diverged on the back of the news, with the former falling broadly and the latter advancing.