Hong Kong: Stocks end the week lower

[HONG KONG] Hong Kong stocks slipped on Friday to post weekly losses, weighed down by tech firms sensitive to tensions between China and the West.

At the close of trade, the Hang Seng index was down 26.81 points or 0.09 per cent at 28,610.65. The Hang Seng China Enterprises index fell 0.53 per cent to 10,699.

For the week, HSI slipped 0.4 per cent, while HSCE was down 1.2 per cent.

The Hang Seng tech index fell 2.2 per cent on Friday, having retreated 4.3 per cent for the week, amid tensions between Beijing and the West.

China has approved domestic fund managers' first exchange-traded funds (ETFs) based on Hong Kong's Hang Seng Tech Index, state media said, giving Chinese investors increased access to such big-name stocks as Alibaba and Tencent.

Historical data shows there are marked "calendar effects" in the Hong Kong stock market which could face some pressure in May, when the A-share market and the US stocks also tend to be weak, Everbright Securities analysts said in a note.

The brokerage, however, expects southbound flows from mainland investors and foreign inflows to continue in May, thanks to low stock valuations in the city, helping support the market.

REUTERS