Hong Kong shares move up; China snaps eight-day gaining streak

Hong Kong shares rose on Wednesday, with the benchmark index gaining for a third straight month, although strength in utilities and lower volumes pointed to caution ahead of a fresh cash injection by the European Central Bank. China shares snapped an eight-day rising streak, dragged by developers after Shanghai reaffirmed its commitment to real estate curbs, dismissing expectations that the city will ease restrictions on property purchases.
The China Enterprises Index of the top mainland listings in Hong Kong rose 0.6 percent. The broader Hang Seng Index ended up 0.5 percent at 21,680.1, again shy of 21,725.6, the top of a gap that opened up between August 4 and 5. The Shanghai Composite Index closed down 1 percent at 2,428.5, with a gauge of the property sector a standout underperformer, down 3 percent on the day.
In February, the Shanghai Composite Index rose 5.9 percent, its biggest monthly gain in 16, while the Hang Seng rose 6.3 percent and the China Enterprises Index added 4.7 percent. The Shanghai government said in a statement late on Tuesday that it would stick to existing real estate policies, clarifying that only Shanghai residents qualify to buy second homes, debunking a report in official mainland media last week. In Shanghai, Poly Real Estate lost 3.3 percent in almost double its 30-day average volume, almost paring gains from since last Wednesday when a mainland report first sparked chatter of "easing" in the embattled property sector.
A Reuters poll suggests it may have edged up to 50.7 in February, a five-month high, up from 50.5 in January, On Wednesday, investors were also cautious ahead of the prospect of another round of cash injection by the European Central Bank, with the Hang Seng utilities Index an outperformer among sectors, up 2.1 percent. Standard Chartered Plc ended up 0.4 percent after posting a market-matching 10.7 percent rise in 2011 pre-tax profit at midday on Wednesday.
This compares with rival HSBC Holdings Plc's earnings on Monday, which were largely in line with expectations, but analysts were more optimistic on the growth outlook for StanChart in 2012 than for HSBC. HSBC is up 18.6 percent this year to date, while StanChart is up 17.7 percent over the same time period, largely in line with the Hang Seng Index's 17.6 percent gain, which has been fuelled largely in part to liquidity injected by central banks.