New | HSBC shares heavily bought as Hang Seng Index edges higher

Hong Kong stocks closed higher on Wednesday led by a resurgent oil sector and heavy buying of HSBC stock as investors continue to digest the latest round of company results.

The Hang Seng Index was up 0.44 per cent at 24,514.16 points after trading in a tight range most of the day. The H-share index rose 0.46 per cent to 11,125.84 points. Turnover was HK$69.1 billion.

Upbeat mainland services sector data sent related firms higher but was not enough to avert a general sell-off marked by erratic trading as key mainland indices rose and fell nearly 2 per cent in the final 90 minutes.

The Shanghai Composite Index closed 1.65 per cent lower to 3,694.57 points despite a spirited attempt to push the index back into positive territory. The CSI 300 also saw off a late rally and finished 2.06 per cent down at 3,866.9 points. The Shenzhen Composite Index gave up its morning gains and dropped 1.05 per cent to finish at 2,128.42.

The Caixin Services PMI, a measure of service sector activity, hit an 11-month high of 53.8, indicating the sector continues to grow despite the overall economic slowdown.

"It is positive to see that some indicators related to the new economic model remain solid," said Gerry Alfonso, a director of Shenwan Hongyuan Securities. The index scored 51.8 in June. A number above 50 indicates economic expansion.

Offshore oil exploration firm CNOOC was 2.86 per cent higher at HK$9.69 and PetroChina gained 0.27 per cent to HK$7.38 as crude prices picked up.