August 14, 2017 / 8:22 AM / a year ago

Hong Kong shares gain, shrugging off China data

SHANGHAI, Aug 14 (Reuters) - Hong Kong shares finished higher on Monday as the weekend did not bring any increase in the tensions between the United States and North Korea, stabilising sentiment and luring investors back into the market.

As in mainland markets, investors largely ignored data on Monday showing that China’s factory output slowed more than expected in July, while investment and retail sales also disappointed. The data may reinforce views that China’s economy is losing steam as lending costs rise and the property market cools.

The Hang Seng index rose 1.4 percent to 27,250.23 points, while the China Enterprises Index gained 1.3 percent to 10,707.24 points.

All but 12 of the 49 companies making up the Hang Seng Index rose, with the technology and consumer cyclical sectors posting the largest gains.

“North Korea had been hitting the market last week, but since we have had a few days of calm...people are readjusting their positions,” said Alex Wong, director at Ample Finance Group in Hong Kong.

Investors are buying up Tencent shares in anticipation of strong results when the company releases earnings on Aug. 16, and market sentiment also received a boost from strong A-share performance on Monday, Wong said.

Tencent Holdings Ltd, which ended last week lower despite reaching a record closing high on Wednesday, rose 4.3 percent.

Geely Automobile Holdings Co rose 4.2 percent on Monday after a 4.5 percent fall on Friday. Early last week, Geely announced an 88 percent rise in total group sales in July from a year earlier.

China Unicom Hong Kong Ltd gained 5.6 percent after it said in a preliminary filing to the Shanghai Stock Exchange that it expected its first-half net profit to increase by about 74.3 percent. China Unicom is dual-listed in Shanghai and Hong Kong.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 128.18.

A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa. (Reporting by Andrew Galbraith; Editing by Lisa Twaronite)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below