HONG KONG: Hong Kong shares fell for a fourth-straight session on Tuesday, dragged lower by weakness in mainland markets with financials and oil names the top drags as turnover sank to a near two-week low.
The Hang Seng Index closed down 0.69 percent at 18,447.17. The China Enterprises Index of top mainland companies listed in Hong Kong finished down 1.02 percent at 9,957.15.
The Shanghai Composite Index ended down 1.87 percent at 2,248.59, testing a major long-term chart support seen at 2,245-2,260. A-share turnover climbed to the highest in eight weeks, but stayed relatively lacklustre.
HIGHLIGHTS:
The Hang Seng Index has lost more than half its gains since Beijing announced its first cut in reserve requirements for commercial lenders on Nov. 30. Weakness in the A-share market could further weigh on the Hong Kong market if the Shanghai Composite breaks below long-term chart supports.
Financial and oil plays were among the top drags on benchmarks. PetroChina Co Ltd lost 1.2 percent, while CNOOC Ltd shed 0.5 percent. Counters seen as proxies of the mainland A-share market also suffered. China Life Insurance Co Ltd eased 0.9 percent and Ping An Insurance (Group) Co of China Ltd declined 1.4 percent. Citic Securities Co Ltd slumped 4.1 percent.
China Gas Holdings Ltd surged 20 percent in more than 10 times its 30-day average volume after China Petroleum & Chemical Corp (Sinopec) and ENN Energy Holdings Ltd offered up to $2.2 billion cash for control of the privately-run natural gas distributor in what could become a rare hostile takeover for a mainland company.
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