Hong Kong shares added 0.69 percent on Tuesday on bargain buying following five consecutive falls, with sentiment buoyed by overnight gains on Wall Street, dealers said. The benchmark Hang Seng Index rose 143.94 points to 21,092.04. Turnover was 45.96 billion Hong Kong dollars (5.92 billion US). However, analysts also said they believe fund outflows will continue to weigh as the US dollar rebounds in Asia.
Mark To, head of research at Wing Fung Financial Group, told Dow Jones Newswires he expects Chinese property and banking firms to continue underperforming in the near term on fears over further tightening by Beijing. But Chinese lenders saw big gains following their recent falls that were caused in part by fears they will have to raise money to meet higher capital requirements.
ICBC rose 2.6 percent to 6.27 Hong Kong dollars, after falling nearly nine percent since the start of the month. China Construction Bank rose 2.1 percent to 6.41 after tumbling 11 percent in the same time. Bank of China added 1.0 percent to 4.09, after falling 9.6 percent. Among other blue chips, HSBC rose 0.8 percent to 87.15, after being down 5.4 percent in the past five sessions.
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