Hong Kong: Share benchmark briefly breaches 28,000 before close

[HONG KONG] Hong Kong's benchmark stock index ended Monday flat, after briefly breaching the 28,000-point level for the first time since May 2015, as weakness in consumer and technology stocks offset strength in financial plays.

The market has been bolstered by a raft of forecast-beating results from mainland companies listed in the city, thanks to Beijing's supply-side reforms that have slashed capacity and boosted earnings in sectors such as coal and steel.

The Hang Seng index rose 0.1 percent, to 27,863.29, while the China Enterprises Index gained 0.5 per cent, to 11,342.07 points.

China's biggest coal miner China Shenhua Energy Co Ltd delivered its strongest interim results in four years, while oil giant Sinopec reported its best six-month profit since the second half of 2014, joining a slew of major state firms who reported above-forecast earnings.

Financial stocks gained.

Linus Yip, chief strategist with First Shanghai Securities, said that the financial sector was bolstered by expectations of solid earnings reports from major Chinese banks later this week. "The market has some good expectations and so there's some kind of a front run before the results come out," he said.

REUTERS