Hong Kong and mainland markets fell on Thursday despite an initial boost provided by Tencent, as investors waited on the sidelines for the outcome of the second round of US-China trade talks in Washington.
The benchmark Hang Seng Index declined 0.5 per cent to 30,942.15 after opening higher at 31,416.71 on the back of Chinese internet giant Tencent Holdings’ 61 per cent jump in first-quarter net profit to 23.29 billion yuan (US$3.65 billion).
Tencent shares closed 3.7 per cent higher at HK$411.00, after rising more than 7 per cent to HK$424.20 in early trading – the biggest intraday rise since August 2015.
“Tencent’s better-than-expected result triggered a share price rally this morning which lifted the market, but it fizzled out by noon,” said Louis Tse Ming-kwong, director at VC Brokerage. “After that euphoria, the market had to come back down to reality again.”
The Hang Seng China Enterprises Index lost 1.3 per cent to 12,278.43, dragged down by Chinese carmaker GAC Group, which fell 3.4 per cent to HK$14.10 and Air China, which lost 2.9 per cent to HK$10.14.
