Hong Kong reverses into decline as banks retreat a second day
Hang Seng Index falls 0.1 per cent to 27.953.16, paring this week’s gain to 0.4 per cent.
Hong Kong reversed into modest declines on Friday as banks retreated for a second day, while mainland stocks gained after a private survey showed that China’s manufacturing activity expanded at the fastest pace in six months in August.
Hong Kong’s Hang Seng Index fell 0.1 per cent, or 17.14 points, to 27.953.16, paring this week’s gain to 0.4 per cent. The Hang Seng China Enterprises Index, or the H-share gauge, also edged down 0.1 per cent.
Banks led decliners for a second day. Industrial & Commercial Bank of China slid 1.0 per cent to HK$5.8, China Construction Bank fell 0.7 per cent to HK$6.81 and HSBC eased 0.1 per cent to HK$75.9.
Internet giant Tencent Holdings snapped two-day gains, dropping 0.9 per cent to HK$326.20.
China SCE Property Holdings dived 4.3 per cent to HK$3.83 after the developer said it will place 400 million existing shares, or 12 per cent of the existing issued share capital, at a price of HK$3.64. It will also issue 400 million new shares at a price of HK$3.64.
“The Hang Seng Index is consolidating around the 28,000 level,” said Kingston Lin King-ham, a director at AMTD securities brokerage. “US and China fundamentals still point to more inflows so the benchmark index may later test 28,588.”