Hong Kong shares ended slightly higher on Friday, with the Chinese banking sector buoyed by declining money rates in the mainland and a pair of surveys showing solid manufacturing activity in the world's second-largest economy. China shares eked out their first weekly gain in three weeks on Friday, with the Chinese banking sector mildly buoyed by a pair of surveys showing solid manufacturing activity in China.
The Hang Seng Index finished up 0.2 percent on the day and 2.4 percent on the week at 23,249.8 points. This is its biggest weekly gain since the week ended September 20. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 0.5 percent on Friday and 4.9 percent this week - its biggest weekly gain since climbing 5.2 percent in the week that ended September 6.
Gains came in weak turnover, totalling just $6.3 billion and 16 percent below its 20-day moving average. Tingyi Holdings spiked 6.4 percent to its highest closing level in almost a year, with traders citing local news reports that the Chinese food and beverage giant is planning to start a venture with a Japanese baby formula manufacturer. The CSI300 of the leading Shanghai and Shenzhen A-share listings ended up 0.5 percent on the day and 0.7 percent on the week at 2,385 points. The Shanghai Composite Index rose 0.4 percent on Friday and 0.8 percent this week.
Shanghai bourse volume sank for a third-straight session on Friday, nearing their lowest for the week. This was both the benchmark indexes' first weekly gain since the week that ended October 11. Robust readings from China's official and the Markit/HSBC October manufacturing purchasing manager index (PMI) surveys helped eased growth concerns after a big divergence between the two in September and ahead of a key November 9-12 policy meeting. Hong Kong and China shares were tepid in morning trade on Friday, with the Chinese banking sector mildly buoyed by a pair of surveys showing solid manufacturing activity in the world's second-largest economy.
On the week, they are now up 0.4 and 0.5 percent, respectively. Volumes in both markets at midday were at their lowest in about a week, suggesting investors may be pulling back ahead of a key November 9-12 China Communist Party policy meeting where major economic reforms are historically decided on. Minsheng Bank climbed 1.6 percent in Shanghai and 0.9 percent in Hong Kong. Agricultural Bank of China (AgBank) was the best performing among the "Big Four", rising 1.3 percent in Hong Kong and 0.4 percent in Shanghai. The sector was also helped on Friday as money rates in the mainland eased further, with benchmark seven-day bond repurchase agreement rates at its lowest in more than a week.
The Chinese auto sector broadly outperformed after Dongfeng Group posted a 39 percent rise in third quarter profit on improving sales in the mainland. In Hong Kong, Dongfeng climbed 2.9 percent, while Guangzhou Auto Group spiked 4.6 percent. The Nasdaq-style ChiNext board of mainly high growth, technology start-ups listed in Shenzhen dropped 1.4 percent and have now dived more than 12 percent from an October 21 closing peak.