Mainland stocks touch 2017 high as ‘Xiongan concept’ rally continues
Hong Kong shares retreat amid concerns the Fed may shrink its balance sheet, and ahead of Xi-Trump summit
Mainland equities touched the highest level of the year on Thursday afternoon, after a three-day rally sparked by the government’s plan to transform a backwater region in Hebei province into a special economic hub along the lines of Shenzhen and Shanghai Pudong.
Hong Kong stocks, however, retreated after US markets fell back amid concerns the Federal Reserve may seek to shrink its balance sheet. Investors were also on edge ahead of the first face-to-face meeting between Chinese President Xi Jinping and US President Donald Trump.
The mainland benchmark Shanghai Composite Index closed 0.3 per cent higher at 3,281. It touched 3,286.7 at one point during the session, a high for 2017.
More than 20 stocks related to the new economic zone, called Xiongan New Area, jumped by their 10 per cent daily limit. The region was handpicked for development by President Xi Jiping.
The CSI 300 Index added 0.3 per cent to end at 3,514.1. Shenzhen’s Component Index rose 0.3 per cent to 10,656.2 and the Nasdaq-like ChiNext edged up 0.06 per cent to 1,944.2.
Hong Kong’s benchmark Hang Seng Index dropped 0.6 per cent to 24,261.5 , while the Hang Seng China Enterprises Index slipped 0.9 per cent to close at 24,261.5.
