Hong Kong stocks slip, as start-up board tumbles most in nearly 2 years

June 27 (Reuters) – Hong Kong stocks dipped on Tuesday, as
any optimism from solid China industrial profit data was offset
by the sour mood from a tumble in the growth enterprise market
(GEM) for start-ups due to worries over potential
policy changes.

The Hang Seng index fell 0.1 percent, to 25,839.99,
while the China Enterprises Index lost 0.3 percent, to
10,498.07 points.

Investors largely looked past news that profits at China’s
industrial companies surged 16.7 percent in May from a year
earlier.

A nearl-10 percent slump in GEM, the biggest drop in nearly
two years, soured the mood. Over a dozen small-caps lost over 50
percent on Tuesday – some tumbling over 90 percent – amid
speculation the Hong Kong stock exchange would delist
thinly-traded stocks.

China Jicheng Holdings lost 94 percent, while
Greaterchina Professional Services tumbled 93 percent.

Most sectors lost ground as the Hang Seng appears to be
losing steam.

Investors are looking for new catalyst as Chinese President
Xi Jinping will visit Hong Kong from June 29 to July 1 to mark
the 20th anniversary of the handover of the city from British
colonial rule to the mainland.
(Reporting by the Shanghai Newsroom; Editing by Simon
Cameron-Moore)


Leave a Reply