Hong Kong: Shares close lower after Wall St selloff

[HONG KONG] Hong Kong's benchmark index bounced off fresh 2-1/2 lows hit after a Wall Street slide on Thursday, paring losses after a sharp rebound in mainland stocks eased the gloom stemming from a tumble in global stocks.

The Hang Seng index fell 0.6 per cent, to 19,817.41, while the China Enterprises Index lost 0.4 per cent, to 8,459.63 points.

Sentiment improved after China's main indexes rebounded roughly 2 per cent as some investors bet that the lows hit during last summer's rout would not be so easily breached.

Citi set the 2016 target for the Hang Seng Index at 21,500, preferring financials and yield plays over property.

The bank added that even the potential expansion of the stock-connect for Shanghai and the extension to Shenzhen, which could happen in the first half, will not lead to any significant fund flows into Hong Kong.

Most sectors were down on Thursday. Energy and utility shares shares ended in positive territory.

REUTERS