HK shares end higher; tech firms rally on hopes of China policy boost
Hong Kong's main Hang Seng index ended higher on Thursday, with investors buying high-tech shares amid talks of possible government support for Chinese technology companies. The Hang Seng index was up 248.16 points or 0.88 percent at 28,607.30 points. The Hang Seng China Enterprises index rose 1.09 percent to 11,019.93. The sub-index of the Hang Seng tracking energy shares dipped 0.4 percent, the property sector was flat, and the financial sector was 1.07 percent higher.
The IT sector rose 2.61 percent as China revamped a national leadership group charged with planning and studying its key technological development strategies, signaling the possibility of policy shifts that could benefit China's tech sector. MTR Corp Ltd touched five-month lows after it announced a senior management reshuffle following "inaccuracies" concerning the methodology of a construction project. The company's shares ended 1.8 percent lower.
The top gainer on Hang Seng was China Mengniu Dairy Co Ltd up 4.58 percent, while the biggest loser was Hang Lung Properties Ltd which was down 2.20 percent. China's main Shanghai Composite index closed up 1.85 percent at 2,744.0696 points while its blue-chip CSI300 index ended up 2.52 percent.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.42 percent while Japan's Nikkei index closed down 0.2 percent. The yuan was quoted at 6.8271 per U.S. dollar at 08:21 GMT, 0.07 percent firmer than the previous close of 6.8318. As of the previous trading session, the Hang Seng index was down 5.21 percent this year, while China's H-share index was down 6.9 percent. As of the previous close, the Hang Seng has declined 0.78 percent this month.
The top gainers among H-shares were Air China Ltd up 6.18 percent, followed by China Vanke Co Ltd gaining 5.82 percent and ZhongAn Online P & C Insurance Co Ltd up by 4.86 percent. China Telecom Corp Ltd which slipped down 0.8 percent.
About 1.49 billion Hang Seng index shares the three biggest H-shares percentage decliners were CNOOC Ltd, which was down 0.92 percent, Huaneng Power International Inc, which ended 0.9 percent lower andere traded, roughly 83 percent of the market's 30-day moving average of 1.80 billion shares a day. The volume traded in the previous trading session was 1.66 billion. At the close, China's A-shares were trading at a premium of 16.67 percent over the Hong Kong-listed H-shares.
The price-to-earnings ratio of the Hang Seng index was 10.88 as of the last full trading day, while the dividend yield was 3.3 percent. So far this week, the market capitalization of the Hang Seng index has risen by 2.53 percent to HK$18.39 trillion. The short and one-factor leveraged Hang Seng index, which is designed to replicate the payoff of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, was lower by 0.87 percent on the day at 4,942.17 points.
(Reporting by Andrew Galbraith, Editing by Sherry Jacob-Phillips)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)