Hong Kong shares track global rally on improved economic outlook

BEIJING: Hong Kong shares end higher on Wednesday, tracking the rallies of stock markets worldwide as investors cheered an improved global economic outlook, but profit-taking in tech shares contained the gains.

At the close of trade, the Hang Seng index was up 81.55 points or 0.31pc, at 26,669.75.

The Hang Seng China Enterprises index fell 0.52pc to 10,557.83.

The sub-index of the Hang Seng tracking energy shares rose 2.8pc, while the IT sector dipped 2.29pc, the financial sector ended 1.81pc higher and the property sector rose 0.71pc.

China's main Shanghai Composite index closed down 1.19pc at 3,362.33 points, while the blue-chip CSI300 index ended down 1.28pc.

The formal start of U.S. president-elect Joe Biden's transition to the White House and increasing confidence that a COVID-19 vaccine would be ready soon ushered in renewed appetite for global shares.

Beijing supports further deepening mutual access between the mainland and Hong Kong financial markets and the expansion of the scope of the Stock Connect linking the two sides, Hong Kong Chief Executive Carrie Lam said in her annual policy address, potentially giving a fresh boost to already strong southbound money flows.

China's state planner has told local governments to investigate new energy vehicle (NEV) projects linked to property developers Evergrande Group and Shenzhen Baoneng, according to a document seen by Reuters.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.56pc, while Japan's Nikkei index closed up 0.5pc.

The yuan was quoted at 6.5783 per U.S. dollar at 0816 GMT, 0.22pc firmer than the previous close of 6.593.