Hong Kong shares nudged off 3½-month high, China ekes out fifth straight gain

Hong Kong shares fell from a 3½-month high on Tuesday, hurt by a series of fund raising moves and Goldman Sachs’ exit from Industrial and Commercial Bank of China, while China markets eked out a fifth straight daily gain,

The Hang Seng Index slid 0.5 per cent at 23,366.4 points after closing on Monday at its highest since early February. The China Enterprises Index of the top Chinese listings in Hong Kong shed 0.9 per cent.

The Shanghai Composite Index and the CSI300 of the leading Shanghai and Shenzhen listings each reversed midday losses to end up 0.2 per cent. Five days of gains helped both rebound from their 50-day moving averages in improved volume, suggesting further gains could be in store.

Shanghai volume decreased for the first time in four days as tax payments by companies put pressure on short term money market rates, but was still some 30 percent above its 20-day moving average.

“I think it’s still too early to say this constitutes a fundamental shift in sentiment,” said Wang Ao-chao, UOB-Kay Hian’s Shanghai-based head of research.

“The moves have been very sector-specific on hopes of sectoral policy changes as the new Chinese leadership convenes various meetings in the upcoming months leading to the plenum,” Wang added.