HONG KONG: Hong Kong shares have ended 0.26 per cent lower, tracking losses in Shanghai, after China released data showing the mainland economy grew more than expected in the second quarter of the year.
The benchmark Hang Seng Index on Wednesday lost 65.15 points to 25055.76 on turnover of $HK104.63 billion ($A18.10 billion).
Shanghai tumbled 3.03 per cent.
China’s National Bureau of Statistics revealed that the world’s No.2 economy grew 7.0 per cent year on year in April-June, the same as the previous three months and better than the median forecast of 6.9 per cent in an AFP survey of 14 economists.
The data follows a slew of disappointing results that have led to a series of measures, including four interest rate cuts since November, to shore up stumbling growth.
However, Bernard Aw, a Singapore-based strategist at IG Asia, said: “The GDP numbers are really good. The better-than-expected GDP reading suggested that Beijing may take its foot off the pedal on more stimulus measures for the time being. This will affect sentiment in the stock market.”
The losses in both markets are the second after they enjoyed a three-day rebound that came in the wake of Beijing’s moves to prevent a crash in Shanghai following a near-month long sell-off by mainland investors.
Among Hong Kong firms, Tencent fell 1.85 per cent to $HK148.90, while casino operator Sands China also lost 1.85 per cent to $HK31.85. Insurance giant AIA climbed 1.10 per cent to $HK50.45 and HSBC added 0.80 per cent to $HK69.10.
On Wednesday, Shanghai’s benchmark composite index dropped 118.79 points to 3,805.70 on turnover of 700.5 billion yuan ($A153.75 billion). The index fell as much as 4.67 per cent in afternoon trading before trimming losses.
