Hong Kong stocks turn edgy on geopolitics; tech gains after China okays more online games
- Beijing approved 104 new video games from mainland developers this month after fewer than 100 titles each were given the nod in April and May
The Hang Seng Index rose 0.1 per cent to close at 18,089.93. The Hang Seng Tech Index advanced 0.9 per cent and the Shanghai Composite Index climbed 0.8 per cent.
Electric-vehicle (EV) maker BYD fell as Chinese and EU officials held talks on EV tariffs and following Warren Buffett’s move to cut his stake in the company for the second time this month. Gold Producer Zijin Mining Group tumbled on falling bullion prices.
“Hong Kong’s market is expected to trade in a narrow range in the short term,” said Yan Zhaojun, an analyst at Zhongtai Securities. “Latest marco data indicates a weak recovery in China’s economy, which doesn’t support a one-way upside market.”
The run-up that sent the Hang Seng Index into the bull market has stumbled, with the benchmark falling more than 8 per cent from this year’s high in May, as investors track China’s patchy economic growth and its plans for reforms. Economic data for May showed a pick up in retail sales but industrial output remained sluggish and home prices continued its downward spiral.