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HK: Stocks flat as mainland demand offset by weakness overseas

[HONG KONG] Hong Kong stocks were little changed on Tuesday, with buying interest from the mainland countered by weakness in global markets.

The benchmark Hang Seng index dropped 0.1 per cent, to 23,331.57 points, while the Hong Kong China Enterprises Index gained 0.1 per cent, to 9,846.06 points.

The downside pressure was limited by rising capital inflows through the Shanghai-Hong Kong Stock Connect scheme. Chinese investors used over 20 per cent of the daily quota on Tuesday, compared with an average of nearly 11 per cent in January.

Linus Yip, strategist at First Shanghai Securities Ltd, said "we still need to have a close watch on that for a while, to see if the trend is sustainable".

The energy sector was among the biggest decliners, down 0.7 per cent at the close, as oil prices remained under pressure after losing nearly 2 per cent on Monday.

But resource stocks added 0.6 per cent, helped by a firm commodity market.


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