Hong Kong blue chips ended little changed on Tuesday, as Sun Hung Kai Properties rallied on a broker upgrade, eclipsing losses in CNOOC Ltd and other China plays following their stellar run. Other top losers among Chinese large-caps were coal plays and PICC Property and Casualty, sending the index of Hong Kong-listed shares in mainland companies down 1 percent.
"There's a bit of rotational buying," said Jackson Wong, investment manager at Tanrich Securities. "The market is still flush with liquidity." The benchmark Hang Seng Index closed down 18.78 points to end at 21,803.57 on main board turnover of HK$74.2 billion (US $9.5 billion), down from Monday's HK$84 billion.
The China Enterprises index of Hong Kong-listed mainland companies ended at 11,917.10, down 123.80 points. Investors' mood was still buoyant, market players said.
"Considering the (declines) in overseas markets from Wall Street to Shanghai, we're doing pretty well," said Tat Auyeung, fund manager at Apex Capital Management. The day's bright spot was Hong Kong property developers, with the Hang Seng property sub-index ending the day up 1 percent.
A Goldman Sachs upgrade in Sun Hung Kai sent the blue chip developer up 2.5 percent to HK$93.70 in heavy trade. Sun Hung Kai is now on Goldman's conviction buy list, due to an improved outlook for its luxury residential and commercial developments and the prospect of more land acquisitions in China. Peer Cheung Kong (Holdings) Ltd also gained in heavy trade, finishing up 0.7 percent at HK$102.70.
China COSCO Holdings slumped 2.3 percent to HK$11.14 as its shares debuted on the mainland's yuan-denominated A-share market. The stock had ramped up about 30 percent since the end of May when news emerged that the container ship operator was applying for a Shanghai listing. Among coal plays, China Shenhua Energy Co slid 4.6 percent to HK$25.70 and China Coal fell 5 percent to HK$11.34. Top Chinese non-life insurer PICC tumbled 8.3 percent.
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