Hong Kong shares down on weak global markets

Hong Kong stocks fell on Wednesday, taking cues from downbeat overseas markets, but the losses were limited by expectations that Beijing will guide more money from the mainland to Hong Kong.

US stocks fell on Tuesday, pushing the S&P 500 to its biggest decline in three weeks, weighed down by concerns about Greece and some upbeat data that fuelled expectations that a US rate hike could come sooner rather than later.

But the Hong Kong market drew support from views that more money will flow in from mainland China.

China’s official

Securities Times had reported on Tuesday that Beijing will soon launch a new pilot scheme, dubbed QDII2, in six cities allowing individuals to invest directly overseas, potentially unleashing billions of dollars in Chinese savings on global stock and bond markets, including Hong Kong.

The Hang Seng index fell 0.6 per cent to 28,081.21 points, while the China Enterprises Index lost 0.7 per cent to 14,701.88.

Among the most actively traded stocks on Hong Kong’s main board were China Culture Group, up 19.7 per cent at HK$0.26; CCT Land, up 44.7 per cent at HK$0.07; and Ping Shan Tea, up 15.7 per cent at HK$0.10.