Hong Kong stocks shrug off interest rate concerns, stock connect delay to close higher
Sun Hung Kai Properties slips 0.69 per cent while Henderson Land falls 0.60 per cent on US rate rise fears
Hong Kong stocks reversed earlier declines to close higher on Friday, amid rising expectations of a US interest rate rise in December and delays in the launch of Shenzhen-Hong Kong stock connect.
The Hang Seng index ended the day up 0.37 per cent, or 81.33 points, to 22,344.21 while the Hang Seng China Enterprises index rose 0.24 per cent, or 22.77 points, to 9,349.31.
News of a delay in the much-anticipated Shenzhen-Hong Kong stock connect until early December disappointed investors who had been betting on a November 21 launch, which led to weaker early trading.
Charles Li, chief executive of Hong Kong Exchanges and Clearing, said on Friday morning the Shenzhen link will “go live in a few more days”.
However, the market quickly shrugged off the impact of the delay, according to Dickie Wong, executive director of research at Kingston Financial Group.
“We have waited for the new link for as long as one year, and the market will not be seriously hurt by a delay of several days,” Wong said. “Investors are confident that the new connect will finally happen this year, but I don’t expect a big rising momentum from its official launch.”
