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Shanghai - Hong Kong stocks pared gains after the city’s benchmark index briefly rose above 24 000 and mainland buying waned. Financial companies fell, while higher crude boosted energy producers.
The Hang Seng Index rose 0.2% at 08:24, after gaining as much as 1.6%. Bank of China slid 1.1%, while Sands China fell for the third time this week.
Net purchases via an exchange link with Shanghai amounted to 190 million yuan, down from 3.9 billion yuan on Wednesday. China Shenhua Energy and China Petroleum and Chemical rallied at least 2%. The Shanghai Composite Index added 0.5%.
Hong Kong’s benchmark equity gauge has surged 14% this quarter, poised for its best gain since 2009, on bets global central banks will remain accommodative and as higher yields and lower valuations drew mainland investors to the city’s equities.
The Hang Seng Index rallied earlier after the Federal Reserve left borrowing costs unchanged and scaled back the number of hikes they expect for next year and beyond.
“The market is using the Fed news to take profit as the pressure for a correction is building up after a decent rally,” said Wang Chen, a partner at Xufunds Investment Management in Shanghai.
“I would be cautious about buying Hong Kong stocks at this level and it may take a while for the market to consolidate around this range. That’s probably why southbound buying through the link is slowing now.”
