Hong Kong shares post solid monthly gains as Connect approaches
Aug 31 (Reuters) - Hong Kong stocks hovered near 10-month highs on Wednesday, capping a month of solid gains, amid signs that inflows of money from China accelerated in recent days as preparations for the Shenzhen-Hong Kong Stock Connect went into high gear.
The Hang Seng index fell 0.2 percent, to 22,976.88, but registered a stellar 5 percent gain for the month of August.
The China Enterprises Index lost 0.6 percent, to 9,541.80 points, posting a monthly gain of 6.5 percent.
Chinese money inflows into Hong Kong under the Shanghai-Hong Kong Stock Connect scheme hit the highest level in two months on Tuesday.
The official Xinhua news agency reported a similar scheme linking Hong Kong and Shenzhen is expected to be launched in mid- or late November.
Merrill Lynch analyst William Chan wrote a report last week advising clients to buy Hong Kong stocks likely to benefit from the link with Shenzhen.
On Wednesday, most sectors ended lower, with raw material shares leading the decline.
Huadian Power slumped 4.7 percent to the lowest level in more than two years after saying its first-half profit dropped 30.9 percent. (Reporting by Samuel Shen and John Ruwitch; Editing by Simon Cameron-Moore)
© Thomson Reuters 2016 All rights reserved.