image

Hang Seng Index

Capital inflows drive Hang Seng to fresh 2012 high

PUBLISHED : Wednesday, 24 October, 2012, 4:25pm
UPDATED : Wednesday, 24 October, 2012, 8:22pm

Hong Kong shares posted a fresh 2012 closing high on Wednesday, buoyed by expectations of more capital inflows into the territory after the Hong Kong Monetary Authority moved to weaken the Hong Kong dollar for the fourth time in less than a week.

The Hang Seng Index closed up 0.3 per cent at 21,763.8, after earlier posting the year’s highest intra-day level at 21,802.5. The China Enterprises Index of the top Chinese listings in Hong Kong slipped 1 per cent.

In the mainland, the CSI300 Index of the top Shanghai and Shenzhen listings ended down 0.2 per cent at 2,307.8. The Shanghai Composite Index closed up 0.1 per cent.

Expectations of further capital inflows buoyed shares of bourse operator Hong Kong Exchange (HKEx) to its highest since late April after the Hong Kong Monetary Authority (HKMA) moved to weaken the Hong Kong dollar for the fourth time since October 19 to defend its 29-year-old peg to the US dollar.

THe HKEx jumped 2.9 per cent, while local developers were among the biggest percentage gainers among Hang Seng Index components.

Weakness in fashion retailer Esprit Holdings limited gains in Hong Kong. Esprit plunged 9.5 per cent after it announced plans to raise US$677 million to fund a restructuring of its key businesses.

Losses on Wednesday brought Esprit’s share price to its lowest since August 6, paring gains after the company appointed an executive from larger rival Inditex as its new CEO.

business-article-page