HK stocks end down as Shanghai edges up to a high
The Hang Seng Index closes below 24,000 on Friday. File photo: RTHK
Mainland stocks edged higher on Friday, with the benchmark Shanghai index ending at a nine-month high on fresh signs of easing Sino-US trade tensions, while Hong Kong shares slipped.
The benchmark Hang Seng Index ended the day at 23,916.06, down 153.88 points or 0.64 percent while the Hang Seng China Enterprises index fell 0.45 percent to 8,609.27.
On the mainland, the benchmark Shanghai Composite Index ended up 0.32 percent at 3,472.32, the highest closing since October 8, while the Shenzhen Component Index closed 0.25 percent lower at 10,508.76.
The combined turnover of these two indices stood at 1.43 trillion yuan, up from 1.31 trillion yuan on the previous trading day.
Shares in the gaming, banking and power sectors led the gains, while those related to solid-state battery, beauty care and non-ferrous metals suffered the most.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.36 percent to close at 2,156.23.
The banking sector was among the top gainers, with a sub-index tracking the industry closing 1.86 percent higher at a record high. The sub-index gained 3.81 percent for the week.
The steel sector also outperformed after China's top leaders pledged to tighten oversight of aggressive price-cutting by domestic firms, as the economy grapples with persistent deflationary pressures. The CSI steel sub-index gained 0.58 percent.
"It could be a prelude to potential supply side reform 2.0, in our view," Citi analysts said.
"We see the prolonged producer price index deflation and profitability concerns as the motives this time. Steady growth so far this year has also opened room for such an initiative."
Citi identified sectors where reform is most urgently needed: ferrous-metal processing (mostly steel), fuel processing, chemicals, non-mineral products (including cement, glass) and metal products.
The mainland gains came as the United States told GE Aerospace it can restart jet engine shipments to China's Comac, a source said.
The United States has also lifted restrictions on exports to China for chip design software developers and ethane producers.
Meanwhile, China is reviewing and approving export licences for controlled items and has been informed by the United States about cancellations of "restrictive measures" against Beijing, the Commerce Ministry in Beijing said. (Reuters/Xinhua)
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