Hong Kong share prices will likely to fluctuate as sentiment is expected to be driven by news on Beijing's foreign investment policy, a dealer said on Friday. For the week ending September 4, the benchmark Hang Seng Index jumped 1.09 percent, or 220 points, to 20,318.62.
China's foreign-exchange regulator said on Friday it plans to raise the maximum investment quota for Qualified Foreign Institutional Investors to one billion from 800 million US dollars.
The plan, an apparent move to attract investment, was a major booster to the blue chip index Friday. However, Peter Lai, sales director at DBS Vickers, said he believed the market was overbought and it could go through some corrections early next week when Beijing clarifies its position on foreign investment. "The Chinese government does not want to kill the market. But at the same time, it also does not wish to create any bubble," he told AFP. Lai said the index would trade between 19,500 and 21,500.