Hong Kong shares slip ahead of holiday as investors shift to China plays

-A +A

HONG KONG (Sept 8): Hong Kong's benchmark share index finished lower on Monday as investors reallocated their portfolios before a public holiday to include more Chinese companies, undermining the city's blue-chips.

The Hang Seng Index closed down 0.2 percent at 25,190.45 points, its third straight daily loss.

The China Enterprises Index of the leading offshore Chinese listings in Hong Kong rose 0.4 percent to its highest close in nine months.

Turnover was the weakest since July 21, with the Chinese mainland and some regional markets closed for the Mid-Autumn Festival. Hong Kong will be shut on Tuesday for the same holiday.

There have been signs recently that relatively cheaper Chinese stocks are attracting investors at the expense of Hong Kong companies, including brokers' reports of greater utilisation of Qualified Foreign Institutional Investor (QFII) quotas, especially on the back of increased government support and ahead of the launch of a Hong Kong-Shanghai trading connection.

AIA Group and HSBC Holdings plc both lost 0.8 percent, while Chinese insurers and telecoms posted solid gains. - Reuters