Hong Kong shares ended flat on Tuesday, with a record close on Wall Street offset by profit-taking after a recent rally triggered by China's economic reform plans. The benchmark Hang Seng Index fell 2.25 points to 23,657.81 on turnover of HK$89.30 billion ($11.52 billion).
Investors took their money off the table after HSI surged more than five percent in the previous three sessions. Most of those gains came on Monday after Beijing unveiled details of a reform drive that includes giving private firms a greater role in the economy. On Wall Street the Dow closed Monday up 0.09 percent at 15,976.02, another all-time high for a fourth successive session.
However, it suffered a late sell-off after breaking the 16,000 barrier for the first time, with traders spooked after investment titan Carl Icahn said equity markets could fall soon. Among Hong Kong stocks, Bank of East Asia gained 0.29 percent to HK$34.30, Cathay Pacific Airways climbed 0.92 percent to HK$15.42 while China Mobile lost 0.72 percent to HK$82.50.
Chinese shares fell 0.19 percent. The benchmark Shanghai Composite Index slipped 4.09 points to 2,193.13 on turnover of 115.9 billion yuan ($19.0 billion). Traders cashed on after the index rallied 2.87 percent on Monday in response to the blueprint. It had already risen more than two percent in the previous two sessions.
"The market has risen too fast in recent days," Zhang Suoqing, an investment adviser with Shenzhen Zhongzheng Investment Consulting, told Dow Jones Newswires. "The enthusiasm about reform is gradually fading and the market is waiting to see how the reform plan will be implemented," he added. Dairy producer Inner Mongolia Yili Industrial Group slumped 5.01 percent to 40.17 yuan while Beijing Sanyuan Foods lost 4.17 percent to 8.96 yuan. Among financials China Merchants Bank dropped 2.82 percent to 11.02 yuan and New China Life Insurance fell 2.25 percent to 24.37 yuan.
Comments
Comments are closed.