Hong Kong stocks recoup losses as developers shine

Credit: REUTERS/BOBBY YIP

Hong Kong shares recovered most of their early losses and ended slightly lower on Thursday amid street protests, thanks to gains in real estate firms and mainland money flows.

HSI -0.1%, HSCE -0.2%, CSI300 -0.2%

HK->Shanghai Connect daily quota used 2.7%

Shanghai->HK daily quota used 3.9%

FTSE China A50 -0.2%

SHANGHAI, June 13 (Reuters) - Hong Kong shares recovered most of their early losses and ended slightly lower on Thursday amid street protests, thanks to gains in real estate firms and mainland money flows.

** The Hang Seng index .HSI dropped as much as 1.8% before ending 0.1% lower at 27,294.71, while the China Enterprises Index .HSCE ended 0.2% lower at 10,472.44, also recovering from earlier losses.

** Stocks were still under pressure amid large-scale protests. Scuffles broke out between protesters and police in Hong Kong on Thursday as hundreds of people remained on the streets to protest a planned extradition law with mainland China, a day after police fired tear gas and rubber bullets at demonstrators.

** Helping provide some steam, the Hang Seng properties and construction index .HSCIPC gained 1.0%.

** Gainers in the sector were led by mainland home builders, including Sunac China 1918.HK, China Evergrande 3333.HK and Country Garden 2007.HK which all climbed more than 3%, as Beijing talked up policy boost to support the economy.

** Chinese regulators should step up support for the economy and keep ample liquidity in the financial system, Vice Premier Liu He said on Thursday, suggesting Beijing would soon unveil more policies to bolster growth amid rising U.S. trade pressure.

** Beijing has plenty of policy tools and is capable of dealing with various challenges, Liu said at a financial forum in Shanghai.

** Southbound money flows buying Hong Kong stocks via the Stock Connect linking mainland and Hong Kong also helped the market, with net buying amounting to about 2.7 billion yuan for the day.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.36%, while Japan's Nikkei index .N225 closed down 0.46%.

** The yuan CNY=CFXS was quoted at 6.9214 per U.S. dollar at 08:17 GMT, 0.04% weaker than the previous close of 6.9188.

** At close, China's A-shares were trading at a premium of 26.62% over Hong Kong-listed H-shares.

(Reporting by the Shanghai Newsroom; editing by Gopakumar Warrier)

((luoyan.liu@thomsonreuters.com; Reuters Messaging: luoyan.liu.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More