Hong Kong shares hit two-week trough ahead of China party plenum

PUBLISHED : Friday, 08 November, 2013, 6:18pm
UPDATED : Friday, 08 November, 2013, 6:18pm

Hong Kong shares sank to a two-week low on Friday, led by growth-sensitive counters with weak turnover magnifying uncertainty about the outcome of a crucial Communist Party policy meeting starting this weekend.

The Hang Seng Index ended down 0.6 per cent on the day and 2.2 per cent on the week at 22,744.4 points, its lowest closing level since October 25. The China Enterprises Index of the top Chinese listings in Hong Kong sank 0.8 per cent on Friday and 2.7 per cent this week.

Bourse turnover stayed below average ahead of China’s November 9 to 12 Third Plenum that will see the country’s top leaders gather behind closed doors to set the economic agenda for the next decade.

Investors will also be watching for monthly figures for China inflation, industrial output, urban investment and retail sales that are due on Saturday. Data early on Friday showed China’s export growth rebounded more than expected in October.

The manager for both Hang Seng and China Enterprises indexes is due to release the results of its quarterly component review after markets close on Friday.

Daphne International and Zhaojin Mining slid after both were among seven deletions from the MSCI China index at a bi-annual review, while Beijing Enterprise Water, one of eight additions, climbed 1.4 per cent.