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Hong Kong stocks fall as China-related companies pull down market before holiday

Hong Kong stocks fall as China-related companies pull down market before holiday

Hong Kong stocks declined Friday as China-related companies pulled down the blue-chip index ahead of the weeklong May holiday on the mainland.
The Hang Seng Index fell 140.79 points, or 0.7 percent, to 20,526.50.
Analysts said they expect the blue chip index to trade in a tight range near the current levels next week, as investors will likely stay on the sidelines, waiting for possible new economic tightening measures to be introduced during the Labor Day break. China's markets will be closed May 1-7.
"It's unlikely that the benchmark index can surpass the 20,800 resistance level next week, given that the Chinese stock markets won't be trading, removing a strong driver for Hong Kong shares," said Castor Pang, a strategist at SHK Financial Ltd.
The decline in Hong Kong shares tracked those at other regional markets, with the Tokyo Nikkei Index down 0.2 percent to 17400.41 and the Shanghai Composite Index down 0.6 percent to 3,759.89.
Among blue chip Chinese companies, port operator Cosco Pacific fell 2.6 percent at HK$19.22, becoming the day's biggest decliner in the benchmark index.
Conglomerate China Resources Holdings lost 1.8 percent at HK$26.90, China Construction Bank fell 1.6 percent at HK$4.84, and Bank of China fell 1 percent to HK$3.91.
"China-related H shares fell rather sharply today after many investors closed their positions on concerns the Chinese government will launch measures to slow economic growth" in the next few days, Pang said.


Updated : 2021-10-20 18:14 GMT+08:00