February 24, 2017 / 8:21 AM / a year ago

Hong Kong stocks slide as resource stocks, weak mainland inflows drag

Feb 24 (Reuters) - Hong Kong stocks fell for a second day on Friday, as resource firms were hit by weak commodities markets in China and a sharp drop in money inflows from Shanghai.

The benchmark Hang Seng index dropped 0.6 percent, to 23,965.70, while the Hong Kong China Enterprises Index lost 1.0 percent, to 10,418.66.

The main index lost 0.3 percent for the week.

Southbound inflows through the Shanghai-Hong Kong Stock Connect used just 5.4 percent of the daily quota, compared with 25 percent on Thursday.

Resource stocks clocked their biggest one-day decline since March 9, down 3.4 percent on Friday after hitting a 20-1/2-month high in the previous session.

Optimism toward the sector waned partly due to a weak commodities market on the mainland. Futures prices of iron ore lost 2.4 percent at the close.

Nearly all sectors lost ground on Friday, but telecommunication stocks advanced 0.5 percent after receiving a boost from heavyweight China Unicom Hong Kong Ltd .

Shares of China’s second-largest telecom operator jumped around 3.4 percent after it reported sharp increase in mobile and 4G subscribers in January and also in hope of restructuring reforms. (Reporting by Jackie Cai and John Ruwitch; Editing by Jacqueline Wong)

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