Hong Kong shares slipped 0.68 percent Wednesday, ending a three-day winning streak, as traders followed a sell-off in Europe and the United States after the IMF downgraded its global economic growth forecasts. The Hang Seng Index shed 159.19 points to 23,263.33 on turnover of HK$65.11 billion ($8.40 billion). However, Chinese stocks ended higher as dealers returned from a week-long holiday, with the Shanghai index hitting a new 19-month high on property market hopes.
Hong Kong had enjoyed a rally of more than two percent over the past three sessions as a pro-democracy protest that had jammed up parts of the city winds down as the government and student leaders prepare for talks at the weekend. But traders fled Wednesday after the IMF said it had lowered its 2014 global growth estimate to 3.3 percent from July's 3.4 percent estimate and warned of stagnation in advanced economies. It also tipped 2015 growth of 3.8 percent, against 4.0 percent previously.
On Wall Street, the Dow shed 1.60 percent, the S&P 500 fell 1.51 percent and the Nasdaq lost 1.56 percent. Earlier Tuesday London's FTSE 100 ended 1.04 percent lower, the CAC 40 in Paris tumbled 1.81 percent and Frankfurt's DAX slipped 1.34 percent. Cathay Pacific Airways gave up 0.68 percent to HK$14.54, CNOOC lost 1.33 percent to end at HK$13.34 and Sun Hung Kai Properties lost 1.51 percent to end at HK$111.00. China Mobile fell 0.54 percent to HK$92.45, Tencent lost 0.42 percent to HK$119.1 and casino operator Sands China was off 2.77 percent at HK$42.05.
In China the benchmark Shanghai Composite Index rose 0.80 percent, or 18.92 points, to 2,382.79 on turnover of 180.3 billion yuan ($29.4 billion). It was the highest close since February 20, 2013, when the index ended at 2,397.18 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, jumped 1.37 percent, or 18.32 points, to 1,351.82 on turnover of 207.1 billion yuan. "The market is doing well due to strong investor confidence," Haitong Securities analyst Zhang Qi told AFP. "Policies including easing credit for the property sector also helped," he said.
Property developers led gains after China's central bank said last week that people who had paid off previous mortgage loans would be treated as first-time buyers and enjoy preferential policies. Poly Real Estate gained 2.88 percent to 5.71 yuan in Shanghai, while Vanke rose 2.83 percent to 9.44 yuan in Shenzhen. Companies related to the northern port city of Tianjin were higher on hopes the central government will approve a free-trade zone, following the first one in Shanghai. Tianjin Port surged by its 10 percent daily limit to 11.88 yuan in Shanghai while Tianbao Infrastructure approached 10 percent to 8.15 yuan in Shenzhen.
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