Hong Kong stocks give up gains, profit-booking weighs on healthcare

Hong Kong stocks erased all gains to end flat on Monday, as losses in healthcare stocks countered strength in materials firms.

** The Hang Seng index closed up 6.36 points or 0.03% at 24,776.77, while the Hang Seng China Enterprises index fell 0.57% to 10,008.88.

** The HSI had gained as much as 1% in early morning trade.

** A sub-index of the Hang Seng that tracks energy shares rose 1.4%, while the IT sector dipped 0.92%, the financial sector ended 0.21% higher and the property sector rose 0.4%.

** The top gainer on the Hang Seng was Hang Seng Bank Ltd, which gained 3.41%, while the biggest loser was Hengan International Group Company Ltd, which fell 3.43%.

** The Hang Seng materials index rose 2.2%, as investors expected further stimulus to underpin China's economy following weak trade data over the weekend.

** China's exports contracted in May as global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as global growth stalls.

** The Hang Seng healthcare index shed 1.8%, as investors booked profits following a 7.6% gain the previous week.

** Gains were also checked as worries over Beijing's Hong Kong legislation persisted.

** Banks including HSBC, Standard Chartered, and Citigroup have seen a spike in inquiries from Hong Kong residents about opening offshore accounts amid concerns stemming from China's decision to impose a national security law on the city.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.34%, while Japan's Nikkei index closed up 1.37%.

** The yuan was quoted at 7.0736 per U.S. dollar at 0848 GMT, 0.11% firmer than the previous close of 7.0812.

** At close, China's A-shares were trading at a premium of 25.92% over Hong Kong-listed H-shares.