Hong Kong blue chips rise on hopes for China monetary easing
HONG KONG, July 28 (Reuters) - Hong Kong blue chip stocks rose on Tuesday, bucking falls for mainland shares, on hopes for a stabilising China market as Beijing hinted at further monetary easing.
The Hang Seng Index, which touched a three-week low early Tuesday, rose 0.6 percent, its biggest daily gain since July 17, to 24,503.94.
The China Enterprises Index slid 0.5 percent to 11,173.04 points, the lowest close in three weeks.
Hong Kong's growth board GEM gained 0.5 percent.
Mainland stocks declined in Tuesday's volatile session, even as Beijing pledged to lend further support after shares sank 8 percent in the previous session.
China central bank said it would use "various monetary tools" to maintain "appropriate levels of liquidity", a signal that the further monetary easing that many analysts have predicted could be in store.
China Resources Enterprise led gains in the blue chip index, surging 2.9 percent. It was followed by CNOOC Ltd and AIA, which were up 2.7 percent.
New China Life Insurance led the falls in the Chinese enterprises index, sliding 5.3 percent.
China Eastern Airlines' Hong Kong shares dropped 4.4 percent on dilution concerns after Delta Air Lines agreed to buy a 3.55 pct stake for $450 million. (Reporting by Donny Kwok; Editing by Richard Borsuk)
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