Hong Kong stocks ended 0.37 percent higher Friday, snapping a four-day losing streak, following a record close on Wall Street, although a much-vaunted trading link-up with Shanghai's exchange suffered a disappointing first week. The Hang Seng Index added 87.48 points to 23,437.12 on turnover of HK$71.09 billion ($9.17 billion). It was down 2.7 percent for the week.
US shares provided another record-breaking lead Thursday on the back of more positive economic indicators. A regional manufacturing index from the Federal Reserve Bank of Philadelphia surged unexpectedly, while the Conference Board's Leading Economic Index, an amalgamation of several key economic indicators, saw improvement. Also, US existing-home sales gained in October for the second straight month.
The stock market link up between Hong Kong and Shanghai saw anaemic interest after launching to much fanfare on Monday. While the exchange connect was trumpeted as allowing a potential $3.8 billion in cross-border transactions daily, it was largely ignored. On the launch day Hong Kong investors had exhausted their daily allowance of Shanghai shares two hours before the close, but mainlanders were less keen - using up less than a fifth of their quota by the end of trade.
And interest faded throughout the week as investors, who were also spooked by more soft Chinese economic data, stayed on the sidelines. Cathay Pacific Airways climbed 1.32 percent to HK$15.38, Henderson Land Development was unchanged at HK$51.20 and Tencent slipped 1.19 percent to HK$124.20.
HSBC dipped 0.46 percent to HK$76.50 and Ping An Insurance of China added 0.95 percent to HK$58.75. In mainland China the benchmark Shanghai Composite Index climbed 1.39 percent, or 34.13 points, to 2,486.79 on turnover of 197.8 billion yuan ($32.2 billion). The index rose 0.32 percent over the week.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.13 percent, or 15.26 points, to 1,359.83 on turnover of 167.8 billion yuan. It gained 2.8 percent for the week. Heavyweight finance shares were the big winners after China's cabinet Wednesday launched ten measures to lower financing costs including allowing a more flexible loan-to-deposit ratio, simpler bond issuance procedures and a lower stock market listing threshold.
"The new registration policy for initial public offerings will simplify the procedure for new share issues, which will bring more business for investment banks," Northeast Securities analyst Shen Zhengyang told AFP. Shen added that the easing of the loan-to-deposit ratio would help improve banks' liquidity. In the Shanghai market, Everbright Securities surged by its 10 percent daily limit to 14.19 yuan while Haitong Securities jumped 8.24 percent to 12.61 yuan. Media and publishing companies rose on hopes of industry reform. In the Shanghai market, Northern United Publishing & Media surged by its 10 percent daily limit to 12.43 yuan while Shanghai Xinhua Media Co jumped 8.53 percent.
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