Hong Kong stocks fluctuated near a six-week high as investors looked for policy easing signals from Beijing amid a slowdown in the economy and worsening liquidity crunch in its property sector.
The Hang Seng Index rose less than 0.1 per cent at 26,154.80 as of 10.30am local time. The Shanghai Composite Index climbed 0.3 per cent to 3,596.32. The benchmark tech index slipped from a five-week high as traders deemed this week’s rally as excessive.
Alibaba, the owner of this newspaper, fell 1 per cent to HK$174. The stock surged 6.7 per cent on Wednesday on speculation its ties with regulatory authorities have improved as the e-commerce group kicked off the Double 11 online-shopping gala.
China Evergrande slumped 9.5 per cent to HK$2.67, while Evergrande Property Services Group lost 5.7 per cent. The developer terminated a US$2.6 billion deal to sell a 50.1 per cent stake in its property services unit following a disagreement on deal terms.
The proposed buyer, Hopson Development, jumped 6.2 per cent to HK$26.25.
Other developers were steady as statements by top Chinese officials helped calm jitters amid an industry slump and heightened concerns about bond defaults. The central bank Governor has said the Evergrande risk is controllable and Vice Premier Liu He added that reasonable funding needs are being met.
China Overseas Land and Investment jumped 6.1 per cent while China Resources Land rose 4.9 per cent. Country Garden and Longfor Group also advanced more than 4 per cent.
Three stocks began trading for the first time in mainland China. Bisen Smart Access soared 85 per cent to 16.85 yuan. Qingdao Foods jumped 44 per cent and Ningbo Dechang Electrical Machinery rose 43 per cent.Internet Explorer Channel Network