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Hong Kong shares slip 0.9 percent on heavy profit-taking

Hong Kong shares slip 0.9 percent on heavy profit-taking

Hong Kong shares slipped Tuesday as heavy profit-taking offset strong gains in China Life Insurance, which posted better-than-expected first half results.
The blue chip Hang Seng Index fell 214.0 points, or 0.9 percent, to 23,363.76.
Analysts expect the benchmark index to remain volatile in the near term as global credit concerns linger. But interest in Hong Kong stocks will likely remain strong on expectations of fund inflows from mainland Chinese investors, they said.
"In this volatile market, the index can easily rise past 24,000 points, but whether further gains can be sustained will depend on resolving issues with the global credit market," said Y.K. Chan, a fund manager at Phillip Asset Management.
The Hang Seng Index had risen 16 percent, or more than 3,000 points, in the six sessions to Monday, when it set a fresh record close. It fell to 20,387 Aug. 17 when a global credit crunch dragged down equities worldwide.
Taifook Research said in a note that investors should be prepared for a pullback after the market's record-breaking run boosted stock valuations.
China Life Insurance jumped 5.7 percent to a record HK$37.15 after the insurer said its first-half net profit more than doubled from a year earlier on strong investment income growth and higher premiums. China Life stock alone reduced the benchmark index's fall by 60 points.
Large cap property and banking firms were among the day's biggest decliners, following sharp gains in the past week.
Banking heavyweight HSBC fell 0.9 percent to HK$139.80, Industrial & Commercial Bank of China fell 3.2 percent to HK$4.92, and Bank of China lost 2.7 percent to HK$3.91.
Sun Hung Kai Properties declined 3.4 percent to HK$100.10. Hang Lung Properties shed 2.1 percent to HK$27.55.
Turnover totaled HK$122.94 billion (US$15.8 billion; euro11.5 billion), shy of the record HK$126.35 billion hit Monday.
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On the Net:
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Updated : 2021-06-20 15:22 GMT+08:00