HK shares edge up as gains in consumer sector offset Tencent losses

  • 5/21/2021
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* Hang Seng index ends up 0.03% * China Enterprises index HSCE rises 0.56% * HSI financial sub-index is flat; property down 0.1% HONG KONG, May 21 (Reuters) - Hong Kong equities ended firmer on Friday as demand for consumer discretionary and healthcare stocks helped offset selling pressure on communication firms, after lackluster results dragged Tencent shares. ** Tencent, down 3.37%, led losses on the benchmark index , with Nomura trimming the Chinese gaming and social media giant’s price target after first-quarter core earnings slightly missed the brokerage’s expectation. ** At the close of trade, the Hang Seng index was up 8.15 points, or 0.03%, at 28,458.44. The index was up 1.5% for the week. ** The Hang Seng China Enterprises index gained 0.56% to 10,702.57. The index rose 2.9% for the week. ** Leading the gains, the Hang Seng healthcare index gained 2.2% while consumer discretionary stocks climbed 1.4% ** The top gainer on the Hang Seng was Shenzhou International Group Holdings Ltd, which jumped 4.46%. ** Crypto-related shares in Hong Kong slumped after U.S. Federal Reserve Chief Jerome Powell said cryptocurrencies pose risks to financial stability and indicated that greater regulation may be warranted. ** But following a regulatory announcement of a tougher ban by Beijing on crypto-related services by financial companies, market players in China said it was business as usual in the country. ** China’s main Shanghai Composite index closed down 0.58% at 3,486.56 points, while the blue-chip CSI300 index ended down 1.01%. ** The yuan was quoted at 6.4355 per U.S. dollar at 08:08 GMT, barely changed compared with the previous close of 6.4355. ** The top gainers among H-shares were Nongfu Spring , up 6.43%, followed by Kuaishou Technology, gaining 5.73%, and NetEase Inc, up 4.82%. ** The three biggest H-shares percentage decliners were Tencent, Longfor Group, which fell 1.81%, and China Merchants Bank, down by 1.19%. ** At close, China’s A-shares were trading at a premium of 37.12% over Hong Kong-listed H-shares. (Reporting by Donny Kwok; Editing by Devika Syamnath)

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