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Hong Kong shares close up 0.2 pct; ZTE hammered
July 16, 2012 / 8:13 AM / 5 years ago

Hong Kong shares close up 0.2 pct; ZTE hammered

HONG KONG, July 16 (Reuters) - Hong Kong shares eked out gains on Monday, as strength in Chinese oil majors helped offset weakness in other China plays hit by a profit warnings underscoring the impact of the slowdown in the world’s second-largest economy.

The Hang Seng Index closed up 0.2 percent at 19,121.3. The China Enterprises Index of the top Chinese listings in Hong Kong closed down 0.2 percent at 9,218.8.

In the mainland, the Shanghai Composite Index finished at its lowest close since March 2009, shedding 1.7 percent to 2,148. The large cap-focused CSI300 Index dived 2.1 percent to close at the lowest since Jan. 16 this year.

HIGHLIGHTS:

* Shares of ZTE Corporation slumped 16.3 percent after the world’s fifth-largest telecommunications equipment maker, and subject of an FBI criminal investigation, warned of lower profits. Several brokerages downgraded ZTE’s Hong Kong listing. Analysts at JP Morgan slashed their rating on ZTE from “overweight” to “underweight” while cutting their price target by more than 50 percent.

* PetroChina rose 1.5 percent, while CNOOC Ltd gained 0.4 percent, buoyed largely by rising oil prices. PetroChina closed at its lowest this year last Friday and is down 2.9 percent in 2012. By contrast, CNOOC is up more than 11 percent this year. (Reporting by Clement Tan; Editing by Richard Borsuk)

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