Update | Hong Kong stocks close up Wednesday led by Tencent and Chinese banks
Hang Seng recovers from last week’s losses
Hong Kong stocks inched higher on Wednesday as shares in the tech and banking sectors advanced, led by Chinese online giant Tencent Holdings.
The Hang Seng Index gained 0.86 per cent, or 234.11 points, to 27,409.07, while the H-shares index added 0.74 per cent, or 79.88 points, to 10,817.88 points. Turnover stood at HK$81.78 billion.
Gains were led by Chinese commercial banks as China’s official statistics showed total profit for commercial lenders climbed in the first half.
Shares of China Construction Bank went up 2.15 per cent to HK$6.60, while ICBC advanced 1.8 per cent to HK$5.65 and Bank of China gained 1.28 per cent to HK$3.95.
Traders are also speculating on a reserve requirement ratio (RRR) cut by China, as the central bank injected 399.5 billion yuan (US$59 billion) into the market via the mid-term lending facility (MLF) on Monday.
“There are a lot of buying orders for the state banks, ICBC in particular,” said Louis Tse Ming-kwong, managing director of VC Asset Management.
Investors are waiting for Tencent’s results which will be announced soon. The Chinese tech giant gained 1.38 per cent to HK$323.20 in today’s market.
