Update | Hong Kong stocks rebound as Tencent fears ease; Shanghai rallies to multi-month high
Hang Seng Index rises 0.5 per cent, or 132.96 points, to close at 25,521.97, while the Shanghai Composite Index finished up 0.8 per cent, or 24.33 points, at 3,207.13, its highest closing level in two and a half months.
Hong Kong stocks staged a modest rebound on Wednesday, as Chinese tech giant Tencent reclaimed ground lost in the previous session, although gains were limited as analysts say it remains unclear whether regulations may tighten up for the country’s fast-growing online game industry.
The Hang Seng Index rose 0.5 per cent, or 132.96 points, to end at 25,521.97. On Tuesday the index plunged 1.5 per cent, the steepest percentage drop in more than seven months.
The Hang Seng China Enterprises Index, which tracks the performance of Hong Kong-listed Chinese companies, closed up 0.7 per cent, or 74.75 points, at 10,380.73.
Turnover decreased 15 per cent to HK$84 billion from Tuesday’s HK$99 billion.
Index heavyweight Tencent rebounded 0.7 per cent to close at HK$271, bouncing back from a 4 per cent slide on Tuesday.
Analysts attributed Tuesday’s sell-off partly to the harsh criticism by the People’s Daily, as the Communist Party’s mouthpiece published two editorials on Tuesday that slammed Tencent’s popular online game Honour of Kings for being “addictive”. The newspaper also described the game as “poison” and a “harm” to society and called for tighter industry regulation.
