Hong Kong shares up; China down

Hong Kong shares ended 0.27 percent higher Thursday, taking the lead from Wall Street while Chinese data showed export growth picking up in June. The benchmark Hang Seng Index rose 62.92 points to 23,238.99 on turnover of HK$47.61 billion (US $6.14 billion). Wall Street ended a two-day losing run thanks to an upbeat assessment of the US economy by Federal Reserve policymakers as the minutes of their June board meeting were released.
The minutes showed the Fed will end its five-year-long, economy-boosting bond-buying scheme by the end of the year. It also expects to hold interest rates at record lows for "a considerable time" after the stimulus programme ends, "especially if projected inflation continued to run below the committee's 2 percent longer-run goal", the minutes said.
In China the General Administration of Customs said exports rose 7.2 percent year-on-year in June while imports gained 5.5 percent. The figures were up from May and although exports were well short of forecasts, the figures represent the latest improvement following a string of upbeat data, including on manufacturing activity. Tencent added 0.83 percent to HK$122.2, Ping An insurance slipped 1.58 percent to HK$59.1 and Bank of China fell 0.86 percent to HK$3.46.
Cathay Pacific Airways eased 0.14 percent to HK$14.22, HSBC slipped 0.13 percent to HK$78.90 and CNOOC dipped 0.15 percent to HK$13.44. In China the benchmark Shanghai Composite Index edged down 0.01 percent, or 0.27 points, to 2,038.34 on turnover of 84.7 billion yuan ($13.7 billion). The Shenzhen Composite Index, which tracks stocks on China's second exchange, slipped 0.14 percent, or 1.57 points, to 1,100.86 on turnover of 120.7 billion yuan.
"The market is more worried about upcoming half-year earnings of companies as well as possible initial public offerings," BOC International analyst Shen Jun told AFP. Last month, China gave the go-ahead for 10 firms to list, and state media said the market regulator might approve a second batch of IPOs soon. Defence stocks retreated on profit-taking. In Shanghai, Hafei Aviation Industry dropped 1.94 percent to 27.85 yuan while Jiangxi Hongdu Aviation Industry slid 0.63 percent to 17.32 yuan. But financial stocks in Shanghai were mixed. Banking giant ICBC gained 0.88 percent to 3.45 yuan while China Life Insurance dipped 0.36 percent to 13.66 yuan.