Hong Kong shares eked out a small gain on Thursday, thanks largely to a 4.1 percent jump for Chinese internet giant Tencent Holdings Ltd, which late on Wednesday reported surprisingly good fourth-quarter revenue. Mainland Chinese markets were weaker for a second-straight session, with the Shanghai Composite Index closing at its lowest since February 21, shedding 0.8 percent to 2,373.8.
The China Enterprises Index of the top mainland listings in Hong Kong slid 0.5 percent. The broader Hang Sengg Index inched up 0.2 percent. Shares of Chinese property developers were a big drag on both the Shanghai and Hong Kong markets. Investors continued to shift funds away from the stocks, which had been a key part of the broader market's rally this year.
Earlier, investors bet that Beijing would relax its aggressive policies and curbs on the property sector, with the world's second-largest economy slowing. But Chinese Premier Wen Jiabao dashed those hopes on Wednesday, reiterating that the current strong measures curbs would stay in place. "Chinese property stocks are a straight sell after Premier Wen's comments yesterday, but it does not mean we are staying 'risk off' on Chinese equities," said Benjamin Chang, chief executive at LBN Advisors, which manages $450 million worth of assets in two China funds.
Strength in Tencent helped offset the weakness among Chinese developers and financial stocks. China Overseas Land & Investment Ltd, the country's largest developer by market value, ended down 2.7 percent after posting 2011 earnings at midday that were slightly better than a Thomson Reuters Starmine consensus. In the mainland, weakness in the Shanghai property sub-index stood out among sector peers. It shed 2.5 percent, with Poly Real Estate down 2.6 percent.
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