Hong Kong shares rise as tech, financial sectors gain

Reuters2021-09-01

SHANGHAI, Sept 1 (Reuters) - Hong Kong shares rose on Wednesday after data showed the city's retail sales climbed for the sixth straight month in July, with tech and financial stocks leading the gains.

The Hang Seng index rose 0.6% to 26,028.29, while the China Enterprises Index gained 1.0% to 9,271.32.

** Hong Kong's retail sales in July rose 2.9% from a year earlier to HK$27.2 billion ($3.50 billion), helped by a stabilising COVID-19 situation and an improved labour market along with an economic recovery.

** China's factory activity expanded at a slower pace while the services sector slumped into contraction in August, raising hopes of more policy easing.

** The Hang Seng Tech Index gained 1.3%. Index constituents Meituan and Tencent Holdings went up 1.8% and 1.5%, respectively. Alibaba Group slipped 0.2%.

** Tencent said on Tuesday it had ended all exclusive music copyright agreements after Chinese regulators barred it from such deals last month. The company said it would continue to cooperate and engage with the parties in a non-exclusive way.

** The Hang Seng Finance Index finished up 1%, while the Hang Seng Property Index rose 0.8%.

** WuXi Biologics dropped 3% and was the second-biggest decliner on the Hang Seng Index, dragging the benchmark down 26 points.

** China stepped up its reform of healthcare service pricing at public medical institutions on Tuesday with the announcement of a pilot programme aimed at controlling costs for consumers.

** China Evergrande Group lost 3.2% to hit a new low of HK$4.22, after the debt-laden developer on Tuesday warned of default risks and legal action from creditors as it scrambles to repair its balance sheet.

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