Hong Kong shares rebound after pounding as investors seek bargains in tech and financials
But China stocks decline further as investors remain cautious amid further tightening fears by PBOC ahead of next week’s Fed policy meeting
Hong Kong stocks ended slightly higher on Thursday as investors snapped up shares that were hammered in the sell off on Wednesday, but investors remained wary that more downward action could still be in store because of profit-taking in the run up to the year-end.
Mainland markets dropped further on rising concerns that the central bank may tighten liquidity conditions ahead of the Federal Reserve’s policy meeting next week.
The Hang Seng Index rose 0.3 per cent to 28,303.19 after posting its biggest decline in a year on Wednesday. The main board’s turnover was HK$121 billion (US$15.48 billion), compared to the average of HK$85.54 billion in the past year. The Hang Seng China Enterprises Index eased 0.11 per cent or 11.85 points to 11,150.73.
“It’s a rebound following terrible losses,” said Francis Lun, chief executive at GEO Securities. “There is some bargain hunting, at least for Tencent and the financials – HSBC, China Construction Bank and ICBC.
“It is half-hearted loss covering, short covering and some bargain hunting, but not a whole recovery yet. ”
Internet giant Tencent Holdings rebounded 3.3 per cent to HK$378 after touching a five-week low on Wednesday. Ping An Insurance (Group) rose 2.4 per cent to HK$74.75 after sliding 4.3 per cent in the previous session in its biggest daily drop since July 2015.
