Hong Kong shares rise on expectations yuan drops will end
Aug 13 (Reuters) - Hong Kong stocks rebounded on Thursday, led by energy and tech shares after China's central bank signalled it won't let the yuan fall sharply further.
The Hang Seng index rose 0.4 percent, to 24,018.80, while the China Enterprises Index gained 0.4 percent, to 11,080.92 points.
The People's Bank of China, which sharply devalued the yuan earlier in the week, said on Thursday that China's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provided "strong support" to the exchange rate.
Expectations of slower yuan depreciation aided market sentiment, despite Hong Kong's gloomy growth outlook.
An index tracking Hong Kong-listed tech firms jumped 4.5 percent, while energy shares also posted solid gains.
Airline operators, including China Eastern and Air China rebounded after tumbling over the past two days amid fears a weaker currency would hurt their bottom lines.
Li Ning Co Ltd jumped 6.7 percent, after the Chinese sportswear maker posted a narrower first-half loss and said it aims to return to profit by the end of 2015.
Brilliance China Automotive Holdings was also up sharply, snapping its three day losing streak, after Credit Suisse upgraded the stock to "outperform" from "neutral" ahead of its interim results.
China Zhongwang Holdings tumbled 12 percent, as the world's second-biggest aluminium products maker failed to convince investors in a statement on Thursday denying allegations by a short seller about its accounting. (Reported by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)
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