HONG KONG Oct 4 Hong Kong stocks were flat on
Tuesday as investors took profits following a rally led by China
Evergrande after its backdoor listing plan, and they
also squared positions in case mainland authorities take fresh
steps to cool China's property prices.
The benchmark Hang Seng Index edged up 0.02 percent
at 23,590.00 points by lunch break, while China Enterprises
Index gained 0.4 percent to 9,719.54 points.
China Evergrande jumped as much as 12 percent to their
highest since Aug. 19 after its plans to inject almost all of
its property assets into a Shenzhen-listed firm, orchestrating a
backdoor listing in the mainland that could potentially fetch it
a higher valuation.
Investors were reluctant to leave positions exposed with
mainland share markets closed for a week-long national holiday.
"Without the China market, players were hestitated to take
major positions, but still the underlying tone is still firm,"
said Steven Leung, a director at UOB Kay Hian.
Concern over further property measures to cool the mainland
property market triggered selling.
Shares of China Resources Land fell 2.6 percent
and China Overseas Land slid 1.6 percent.
Four Chinese cities have announced new restrictions on
property purchases as the government tries to cool soaring home
prices stoked by property speculators in second- and third-tier
cities across the country.
(Reporting by Donny Kwok; Editing by Simon Cameron-Moore)