Hong Kong - Chinese stocks traded in Hong Kong held near a seven-week high as railway companies and banks extended their gains. Insurers and brokerages led declines after rallying last week.
The Hang Seng China Enterprises Index was down 0.1% as of 08:15, with China Life Insurance among insurers leading declines.
The firm rallied 14%last week as its sector jumped amid bets their investment returns will improve. Huatai Securities and China Vanke, which both rose at least 6.1% last week, were among the biggest decliners on the H-share gauge on Tuesday.
The Shanghai Composite Index was little changed.
The H-share gauge is headed for a 3% gain this month after last week’s rally by insurers helped erase losses in November.
The sector surged last week as Goldman Sachs said investors should buy underperforming Chinese insurance stocks because valuations are set to recover as bond yields climb and the nation’s economic outlook improves.
The Hang Seng Index is headed for a monthly drop, as local developers have tumbled since the government imposed measures to curb property prices, and amid growing expectations the US Federal Reserve will raise interest rates next month.
The Hang Seng China Enterprises Index fell to 9 852.72. Zhuzhou CRRC Times Electric and CRRC extended Monday’s surge. The Shanghai Composite Index traded at 3 275.70, while the Hang Seng Index was little changed.
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