HONG KONG: Hong Kong equities ended a volatile day 0.43 percent higher Thursday, tracking movements in Shanghai, where several more firms were taken out of suspension after being halted to prevent a market meltdown last week.
The benchmark Hang Seng Index added 107.02 points to 25,162.78 on turnover of HK$91.59 billion (US$11.82 billion). Shanghai closed 0.46 percent higher.
The gains pared some of the losses suffered in the previous two days after a three-day rally that came in response to Beijing's measures aimed at preventing a crash in Shanghai.
Despite news that China's economy grew more than expected in April-June, investors remain on edge after a month-long sell-off that saw shares plunge more than 30 percent and billions wiped off valuations. Shanghai had risen more than 150 percent in the year its June 12 peak in a borrowing-fuelled buying frenzy.
Last week, the government announced measures to curb a month-long market rout, including a police crackdown on short-selling and a ban on big shareholders and company executives from selling stock for six months.
Half the firms traded were also suspended but by Thursday that was down to less than a quarter.
"A lot of domestic investors are still in a gambling mode," Yen Chiu, a Hong Kong-based trader at Shenwan Hongyuan Group, told Bloomberg News. "That's how the market is very volatile. We are quite conservative at the moment and the shrinking volume confirms trading is becoming more cautious overall."
The gains in Hong Kong were in line with a broader Asian advance that came after Greek MPs voted in favour of an unpopular package of reforms demanded by its creditors in order to unlock crucial bailout cash and avoid crashing out the eurozone.
Winners in Hong Kong included HSBC, which added 1.38 percent to HK$69.90, while China Overseas Land Investment rallied 4.33 percent to HK$26.50 and Ping An Insurance rose 1.54 percent to HK$95.40.
However, Casino operator Galaxy Entertainment slipped 1.97 percent to HK$34.75 and rival Sands China fell 0.32 percent to HK$31.60, both hit by profit-taking following strong rallies over the past week.
In Shanghai the composite index added 17.48 points to 3,823.18 on turnover of 569.9 billion yuan ($93.2 billion). It fell as much as 3.08 percent and rose up to 1.89 percent.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 1.34 percent, or 27.68 points, to 2,086.52 on turnover of 508.2 billion yuan.
While China's economic 7.0 percent growth rate in the second quarter beat expectations, analysts said questions over the figure have emerged as it exactly met the government target for the full year.
Some also believe the result could mean the government will delay further economic stimulus measures.
A Chinese technology firm linked to e-commerce giant Alibaba said Thursday it was putting new limits on a financing platform reports say facilitated margin trading, blamed for the boom and bust.
Hundsun Technologies' HOMS platform had aimed to connect companies seeking private equity investment with financial institutions and other lenders, according to Hundsun's website.
But state media say it was used to help provide financing for margin trading -- which allows investors to use borrowed funds to trade stocks with only a small portion of money as deposit -- outside official channels.
The firm slumped by its 10 percent daily limit to 72.05 yuan in Shanghai.
Airlines were higher in Shanghai. China Eastern Airlines jumped 9.95 percent to 9.50 yuan while Hainan Airlines rose 6.53 percent to 5.06 yuan.
In Shenzhen, information technology firms were higher. Tianze Information Industry jumped by its 10 percent daily limit to 17.55 yuan and Inspur Electronic Information Industry gained 5.81 percent to 26.03 yuan.
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