[ET Net News Agency, 24 October 2017] HK stocks closed weaker on Tuesday after the US
equity markets snapped a 6-day winning streak overnight. The Hang Seng Index opened down
73 points to 28,232. It briefly fell 207 points in afternoon trade to an intra-day low of
28,098, dragged by the Big Four mainland lenders and AAC Technologies.
The Hang Seng Index ended down 150 points or 0.5% to 28,154. The H-share index rose 85
points or 0.7% to 11,405. Turnover decreased to HK$89.9 billion from HK$91.4 billion on
Monday.
The northbound quota balance of the "Shanghai-HK Connect" program was RMB15.207 billion,
exceeding the daily allowed quota of RMB13 billion. It indicated a net outflow of RMB2.207
billion. The southbound quota balance was RMB9.461 billion, accounting for 90.1% of the
daily allowed quota of RMB10.5 billion.
As for the Shenzhen-HK Connect, the northbound quota balance was RMB13.943 billion, also
exceeding the daily allowed quota of RMB13 billion. It indicated a net outflow of RMB943
million. The southbound quota balance was RMB9.818 billion, accounting for 93.5% of the
daily allowed quota of RMB10.5 billion.
Automakers were generally softer. Geely Automobile (00175) slipped 2.5% to HK$25.1. BYD
(01211) fell 3.6% to HK$70.35 even though JP Morgan maintained its target price at HK$100.
AAC Technologies (02018) dipped 2.7% to HK$136.8 after BNP Paribas downgraded the stock
to "hold" from "buy", with a higher target price of HK$143, up from HK$121. It was the
worst blue-chip loser. Q Technology (01478) fell 1% to HK$18.18 after a 18% rally
yesterday on talks that its major client Vivo reached out to Russian market.
Mainland lenders kicked off earnings report season this week. Industrial and Commercial
Bank of China (01398) fell 0.2% to HK$6.15. China Construction Bank (00939) slipped 0.6%
to HK$6.81 ahead of its earnings report on Thursday (26 October). Bank of China (03988)
declined 0.5% to HK$3.97. Agricultural Bank of China (01288) weakened by 0.3% to
HK$3.61.(KL)