HONG KONG: Hong Kong, the Hang Seng Index was up 0.6 percent at 24,818.63 points, after opening 1.5 percent higher.
Analysts said Hong Kong shares were weighed down by profit-taking pressure given concerns over China’s slowing economy.
Linus Yip, chief strategist at First Shanghai Securities in Hong Kong, said investors would continue to trade cautiously ahead of the New Year holiday given uncertainties both at home and abroad.
China stocks shot up more than 2 percent on Thursday after the central bank eased policy in an attempt to combat an economic slowdown and ward off deflation, but profit taking pared gains by midday.
The move by the People’s Bank of China to cut reserve ratio requirements (RRR) for banks had been widely expected before the long Lunar New Year holidays in mid-February, helping fuel a stock market rally of around 40 percent in the last few months.
The CSI300 index ended the morning session up 1.4 percent at 3,449.57 points, after surging 2.5 percent at the open, while the Shanghai Composite Index was up 1.0 percent at 3,205.55 points, after opening up 2.4 percent.
“The strong opening was expected but the subsequent retreat during morning trading indicates that investors are cautious.” said Li Zheming, an analyst at Datong Securities in Dalian.
