Profit taking hits Hong Kong shares; Wanda surges 20%
August 10, 2017 | 1:26 PM
by Reuters
Image used for representational purpose. Photo: File
 
Sharelines

Shanghai: Hong Kong shares fell more than one per cent on Thursday, mirroring losses in regional markets amid continued tensions over North Korea, and as investors booked profits after recent gains.

The Hang Seng index ended down 1.1 per cent at 27,444.00 points, while the China Enterprises Index lost 1.7 per cent to 10,782.20.

The losses reflected profit taking and increased caution among investors as tensions ratcheted up between the U.S. and North Korea, said Sam Sam, an analyst with South China Financial in Hong Kong.

Wharf Holdings Ltd fell sharply, losing 7 per cent.

On Wednesday, Wharf shares surged 14 per cent to a record high close of HK$79.65 on news that its unit Wharf Real Estate Investment Co. Ltd. would submit an application for a separate listing on the main board.

Hong Kong Exchanges and Clearing closed down 4.3 per cent after second-quarter results released on Wednesday indicated a 14-percent fall in its commodities segment.

Wanda Hotel Development Co. Ltd. was one bright spot, surging 19.8 per cent to HK$1.39, its highest level in nearly two years.

The company, a unit of Chinese conglomerate Dalian Wanda Group led by Wang Jianlin, said earlier in the day that it would buy assets worth over 7 billion yuan ($1.05 billion) from Wang-controlled companies as part of a restructuring.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 128.54.

A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong.


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