Tuesday, 31 March 2015 14:33
HONG KONG: Hong Kong stocks ended 0.18 percent higher on Tuesday after China’s central bank eased mortgage rules to boost the mainland property market, but Shanghai retreated on profit-taking after a recent surge sent it to a seven-year high.
Hong Kong’s benchmark Hang Seng Index added 45.77 points, to 24,900.89 on turnover of HK$ 148.88 billion ($ 19.21 billion).
The People’s Bank of China on Monday said it would lower minimum downpayments on second homes from 60-70 percent to 40 percent in a bid to boost the troubled sector and give a boost to the slowing economy.
The bank’s head Zhou Xiaochuan hinted at the weekend that authorities could implement more monetary loosening to fend off deflation.
Earlier in the month Premier Li Keqiang said Beijing had the firepower to support the economy, which in 2014 grew at its slowest pace in 24 years, while recent data suggests continued weakness in the current quarter.
Also supporting the market news Friday that China would expand the number of domestic fund-management firms allowed to buy Hong Kong stocks through the existing “Shanghai-Hong Kong Stock Connect” scheme.
But Tuesday’s rally weakened as the day went on as investors cashed in recent gains.
Among Tuesday’s gainers Tencent rose 1.73 percent to HK$ 147.20, Cathay Pacific added 0.90 percent to HK$ 17.94 and China Mobile put on 0.70 percent to end at HK$ 101.20.
However, HSBC lost 0.45 percent to HK$ 66.65, Hutchison fell 0.65 percent to HK$ 107.60 and Henderson Land lost 0.27 percent to HK$ 54.45.
In mainland China the benchmark Shanghai Composite Index lost 1.02 percent, or 38.67 points, to 3,747.90 on turnover of 721.3 billion yuan ($ 117.4 billion). The index has surged more than 13 percent in the past three weeks.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 0.53 percent, or 10.34 points, to 1,958.40 on turnover of 553.7 billion yuan.
“Investors cashed out and took profits after the market was led higher by the mortgage lending loosening polices and easing hopes,” Zheshang Securities analyst Zhang Yanbing told AFP.
He added investors also grew more cautious ahead of Wednesday’s release of China’s official purchasing managers’ index (PMI).
Property firms fell on profit-taking after a run-up fuelled by rumours of the mortgage move.
Gree Real Estate fell 5.01 percent to 27.29 yuan in Shanghai, while China Vanke slid 2.95 percent to 13.82 yuan in Shenzhen.
Construction firms also fell in Shanghai. China Railway Construction lost 3.38 percent to 18.59 yuan and China Railway Erju eased 3.11 percent to 23.39 yuan.
China Southern Airlines fell 3.53 percent to 7.92 yuan in Shanghai after it reported its 2014 net profit dropped 10.55 percent year-over-year to 1.78 billion yuan.
Copyright AFP (Agence France-Presse), 2015
