HONG KONG: Hong Kong shares closed 0.26 percent lower on Friday following a late sell-off on profit-taking after spending most of the day on positive territory.
The benchmark Hang Seng Index dropped 58.64 points to end at 22,191.17 on turnover of HK$75.60 billion ($9.75 billion).
The index ended the week 0.7 percent higher, helped by a rebound in Chinese stocks after the Shanghai market slumped to a four-year low, while dealers are hopeful that Beijing will soon announce plans to boost the mainland economy.
Alvin Cheung, associate director at Prudential Brokerage, said: "The Hang Seng Index may have another 500 point upside from here before the year ends."
The big story was People's Insurance Co. of China (PICC), which recently raised US$3.1 billion in Hong Kong's largest initial public offering in two years. The stock surged 6.9 percent to HK$3.72 on its debut.
Mainland developers surged, with China Overseas Land up 2.4 percent to HK$23.65, while China Resources Land ended 0.5 percent higher at HK$21.15.
Italian fashion giant Prada hit a record after surging 10.1 percent to HK$71.00 on news it saw a 30 percent increase in third-quarter net profit.
Chinese shares closed up 1.60 percent on expectations of government policies to support the domestic economy, dealers said. The benchmark Shanghai Composite Index rose 32.55 points to 2,061.79 on turnover of 82.2 billion yuan ($13.2 billion).
The index jumped 4.12 percent over the week after hitting a four-year low on Monday.
"The market was oversold. Investors are also expecting fresh policies from the upcoming economic work conference," Industrial Securities analyst Jiang Shiqing told AFP.
State media have reported that the government will later this month hold its annual economic meeting to set the policy direction for the next year.
Cement producers rose on hopes of increased demand after top officials urged further urbanisation.
Shaanxi Qinling Cement surged by its 10 percent daily limit to 4.76 yuan, Anhui Chaodong Cement gained 5.92 percent to 10.37 yuan and Gansu Qilianshan Cement rose 3.09 percent to 9.69 yuan.
Coal miners gained on hopes winter weather will drive up demand. Guizhou Panjiang Refined Coal jumped 8.30 percent to 14.75 yuan and Datong Coal Industry rose 3.94 percent to 8.44 yuan.
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