Hong Kong shares close at near three-week high on upbeat China, US news

PUBLISHED : Friday, 11 October, 2013, 6:13pm
UPDATED : Friday, 11 October, 2013, 6:20pm

Hong Kong shares hit their highest close since September 23 and eked out their first weekly gain in three, buoyed by a strong mainland Chinese market and rising hopes that a US debt default can be averted.

The Hang Seng Index ended Friday up 1.2 per cent at 23,218.3 points. It rose 0.3 per cent on the week, its first gain since the week ended September 20.

The China Enterprises Index of the top Chinese listings in Hong Kong also rose 1.2 per cent. Gains were stymied by technical resistance at its 200-day moving average. It rose 0.6 per cent this week.

Mainland Chinese markets were lifted by positive September auto sales numbers and hopes of reform in the Shanghai free-trade zone, with financial counters leading gains.

The official Shanghai Securities News reported on Friday that the city government’s reform plans involving state-owned enterprises will focus on decentralising power and offering stock option incentives.

The official China Securities Journal reported that Shanghai Lujiazui Finance and Trade Zone Development entered an agreement to develop an internet-based financial services platform.