Hong Kong shares fall on late profit taking
15/08/2017 09:09
SHANGHAI, Aug 15 (Reuters) - Hong Kong shares finished down
on Tuesday, falling late in the session after profit-taking
pressures overcame support from a strong performance in banking
shares.
The Hang Seng index .HSI fell 0.3 percent, to 27,174.96
points, while the China Enterprises Index .HSCE gained 0.3
percent, to 10,738.00 points.
The China Enterprises Index had earlier risen as much as 1.4
percent in the morning session, and the Hang Seng index rose as
much as 0.7 percent.
The declines interrupted what looked like a continuation of
Monday's market rebound, following losses in global shares last
week amid fears over rising tensions between the United States
and North Korea.
Those tensions eased further on Tuesday after North Korean
state media reported that the country's leader had delayed a
decision on firing missiles toward Guam. urn:newsml:reuters.com:*:nL4N1L06KY
But investors in Hong Kong, who are looking to results from
companies that have yet to release in the ongoing earnings
season, chose to close positions and take profits late in the
day, dragging the index down, said Linus Yip, chief strategist
at First Shanghai Securities in Hong Kong. Property and resource
firms were particular targets, he said.
China Shenhua Energy Co Ltd 1088.HK fell 3.9 percent and
Wharf Holdings Ltd 0004.HK lost 3.3 percent.
Providing market support for most of the trading day, bank
stocks strengthened after a statement from China's banking
regulator late on Monday said first-half profits for commercial
lenders rose nearly 8 percent from the same period in 2016,
while the level of non-performing loans (NPLs) in June did not
increase from March. urn:newsml:reuters.com:*:nL4N1L03L0
Yip said Beijing's attempts to rein in lending have helped
to improve interest rate spreads and could bolster the health of
the sector.
Industrial and Commercial Bank of China Ltd 1398.HK was
the strongest index component, rising 2.8 percent. China
Construction Bank Corp 0939.HK , which rose 1.1 percent and
Bank of China 3988.HK , which rose 1.6 percent, were also among
the top five gainers in the index on Tuesday.
The three banks are also listed in Shanghai, where they
recorded strong gains for the day. urn:newsml:reuters.com:*:nZZN2R3700
The index measuring price differences between dual-listed
companies in Shanghai and Hong Kong .HSCAHPI stood at 129.05.
A value above 100 indicates Shanghai shares are pricing at a
premium to shares in the same company trading in Hong Kong, and
vice versa.
(Reporting by Andrew Galbraith; Editing by Jacqueline Wong)
((Andrew.Galbraith@tr.com; +86 21 6104 1779; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))
Keywords: CHINA STOCKS/HONGKONG CLOSE