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Hong Kong: Shares fall on weak yuan, Brexit fallout fears

Friday, July 8, 2016 - 16:33
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[HONG KONG] Hong Kong stocks fell on Friday, tracking losses in Shanghai shares, on fears of further weakness in the yuan and worries that Britain's decision to leave the European Union could destabilise one of China's biggest export markets.

The yuan has skidded to 5-1/2 year lows and slipped again against the dollar on Friday, fuelling worries of a surge in capital outflows from China in coming months that could complicate the government's efforts to stabilise the economy.

The blue-chip Hang Seng Index fell 0.7 per cent to 20,564.17 points, while the China Enterprises index lost 0.8 per cent to 8,534.79.

For the week, the benchmark blue-chip index ended the week down 1.1 per cent, while the Chinese companies index slid 2.0 per cent, ending two straight weeks of rallies.

Footwear retailer Belle led the slide in the main index, falling 2.3 per cent. Coal miner China Shenhua and property developer Henderson Land aided the drop, declining more than 2 per cent.

REUTERS