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Hong Kong: Shares little changed as financials lose gains
[HONG KONG] Hong Kong stocks were little changed on Wednesday, with financial shares curbing gains on the main index as investors await fresh cues for direction.
The Hang Seng index rose 0.2 per cent, to 20,206.67, while the China Enterprises Index lost 0.1 per cent, to 8,668.63 points.
Most sectors rose but financial shares underperformed, losing 0.5 per cent, as Chinese banks are under margin pressures from a slowing economy and rising bad debt.
Chi Lo, economist at BNP Paribas Investment Partners pointed out that some market players believe that China would see a banking crisis soon, with losses expected to amount to US$3.5 trillion. But such an "Armageddon" scenario was not a fair bet on China, he wrote.