=MARKET BUZZ: Hong Kong’s HSI Ends Off Highs As China Markets Slump
HONG KONG (Jul 17) -- Hang Seng rises for sixth day, but ends off day’s high after political concerns stoke sell off in mainland equities; HSI closes up 0.3% at 26,470.58, while Shanghai Composite sheds 1.4% after news China’s anti-corruption body investigating Sun Zhengcai, member of ruling Communist Party’s Politburo and contender for top leadership. Fears of additional policy tightening also weigh after President Xi Jinping calls for larger role for central bank to manage financial risks. Shenzhen benchmark slumps 4.3% and Nasdaq-styled technology gauge ChiNext crashes 5%. Mainland markets shrug off better-than-expected June quarter GDP data. “The data was good but today was about what the events over the weekend could mean for China markets,” VC Brokerage in Hong Kong director Louis Tse says. “Momentum on Hang Seng remains positive, but investors may adopt a wait-and-watch mode now.” Gauge of mainland companies listed in Hong Kong close 0.5% higher, after climbing 1.4% earlier. Insurers lead advance; China Life Insurance adds 3.2% after reporting 18% increase in accumulated premium income for 1H, Ping An Insurance Group rises 2.3%. Galaxy Entertainment Group down 3.2% and Sands China sheds 2.1% after leading junket operator warns of liquidity channel impairment and advises clients to withdraw money from affected bank accounts, according to Daiwa Capital Markets.
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