Hong Kong shares dip on sluggish China equities, Fed rate outlook

Footwear retailer Belle tumbled more than 9 pct after it reported a 19.7 pct fall in H1 profit amid a tough retail climate and intensifying online competition.

By: Reuters | Updated: October 25, 2016 2:30 pm
Hong kong, Hong kong shares dip, equity, China, US interest rates, yuan, shanghai hong kong connect scheme, Business, World markets, world news Chinese investors bought about 1.3 billion yuan of Hong Kong stocks via the Shanghai-Hong Kong Connect scheme. (Source: Reuters)

Hong Kong shares ended slightly lower on Tuesday after mainland markets put up a lacklustre performance and as investors were cautious about the increasing possibility of a U.S. interest rate increase in December. The Hang Seng index fell 0.2 percent, to 23,565.11, while the China Enterprises Index also lost 0.2 percent, to 9,837.70 points.

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On the day, Chinese investors bought about 1.3 billion yuan of Hong Kong stocks via the Shanghai-Hong Kong Connect scheme.

Services stocks rallied, materials shares rose, as China’s efforts to cut capacity caused supply shortages in raw materials, while energy shares corrected following Monday’s jump.

Footwear retailer Belle tumbled more than 9 pct after it reported a 19.7 pct fall in H1 profit amid a tough retail climate and intensifying online competition.