New | Mainland China market turnover hits record 1.5 trillion yuan but Hong Kong market down
Hong Kong and mainland stock markets went in different directions on Friday. Combined market turnover in Shanghai and Shenzhen hit a record 1.53 trillion yuan (HK$1.91 trillion) and both their indexes reached fresh seven-year highs, while the Hong Kong stock market fell slightly, with turnover at the low end for the week.
Brokers said mainland Chinese investors kept faith with the market rally on expectations of further policy easing by the central government while trading in Hong Kong, where there were more international investors, turned cautious.
The Hang Seng Index declined 0.31 per cent, or 86.59 points, to 27,653.12 after trading in a narrow range of 27,600 to 27,950 the whole day. The H-share index that tracks Hong Kong-listed mainland stocks fell 1.25 per cent to close at 1,4536.67. Total turnover rebounded to HK$215.94 billion on Friday, up 7.76 per cent from 200.38 billion on Thursday but still ranking as the second lowest of the week and down from a record HK$293.9 billion on Thursday of last week.
“Hong Kong’s market has cooled down and has seen a correction this week as investors are cashing in their profits made in the past two weeks,” said Joseph Tong Tang, executive director of Sun Hung Kai Financial. “They are likely to come back to the market next week as the correction is likely to finish and the mainland markets’ strong investment sentiment is likely to drive Hong Kong market up.”
Total mainland market turnover reached a record 1.530 trillion yuan on Friday, with Shanghai market turnover a record 915.6 billion yuan and Shenzhen also setting a record at 614.4 billion yuan.
The Shanghai Composite Index closed up 2.2 per cent at fresh seven-year high of 4,287.
Among the heavily traded shares in Hong Kong, China Mobile, the country’s biggest telecommunications company, climbed 2.09 per cent to HK$107.70, after a Morgan Stanley report pointed to solid first-quarter revenue for companies in the sector.
Shares in China Overseas Land, a state-owned developer, rallied 2.74 per cent to HK$29.95, while China Resources Land rose 1.23 per cent to HK$24.65.
Chinese oil majors enjoyed big gains following a strong rally in Brent crude prices. The futures contract posted its biggest weekly gain in almost six years. PetroChina shares jumped 1.14 per cent to HK$10.62 and Sinopec added 0.43 per cent to HK$7.01.
