China / Business

Hong Kong stocks climb most in a month

By Bloomberg (China Daily) Updated: 2016-12-29 08:28

Hong Kong stocks rose, with the benchmark gauge gaining the most in a month, as banks led a rally by Chinese mainland companies after a technical indicator signaled recent losses were excessive.

The Hang Seng Index added 0.8 percent to 21,754.74 at the close, rebounding from a five-month low. China Construction Bank Corp surged the most in 10 months, while Tencent Holdings Ltd jumped 2.2 percent.

Stocks extended gains in afternoon trading as the pace of buying by mainland investors through the Shanghai link accelerated. The Shanghai Composite Index slipped 0.4 percent to its lowest level since Oct 31.

Hong Kong's benchmark index has slumped 6.6 percent this quarter, the world's worst performance after the Philippines and New Zealand, as higher borrowing costs undermined the outlook for the city's property market and a weaker yuan cut foreign demand for Chinese mainland assets. The Hang Seng Index's relative strength fell earlier Wednesday to 28.5, the lowest since January.

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