Feb 14 Hong Kong stocks ended little changed on
Tuesday as growing profit-taking after a two-month rally offset
sustained inflows from mainland Chinese investors.
Both the benchmark Hang Seng index and the Hong Kong
China Enterprises Index closed a sliver lower at
23,703.01 points and 10,254.44 points, respectively.
The Hang Seng has risen about 8 percent so far this year,
riding a wave of optimism that global economic growth is
The market has also been supported by rising southbound
inflows through the Shanghai-Hong Kong Stock Connect scheme as
mainland Chinese investors seek higher returns and a hedge
against expectations of further depreciation in the yuan
Over 25 percent of the daily Connect quota was used on
Tuesday, compared with 25.4 percent on Monday and an average of
less than 11 percent in January.
"Hong Kong listings represent a good bargain for onshore
investors, who have limited asset classes to invest in," said
Nomura analysts in a research note.
Most sectors retreated on Tuesday, but an index tracking
services stocks gained 2.7 percent.
Television Broadcasts Ltd jumped over 9 percent at
one point after it said it was cutting the size of a planned
buyback but raising the offer price, as the broadcaster moved to
counter a potentially hostile investor.
Investors were also awaiting comments by U.S. Federal
Reserve Chair Janet Yellen later in the day for clues on the
chance of an interest rate hike in March, which markets now see
Higher borrowing costs would weigh on rate-sensitive
property shares but benefit the financial sector
. Both sectors made modest gains on Tuesday.
(Reporting by Jackie Cai and John Ruwitch; Editing by Kim