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Hong Kong: Shares close up 1% as yuan stabilises
[HONG KONG] Hong Kong stocks ended more than 1 per cent higher on Wednesday as the yuan stabilised, but the main indexes pared some gains after China stocks fell sharply in late afternoon trade.
The Hang Seng index rose 1.1 per cent, to 19,934.88, while the China Enterprises Index gained 0.7 per cent, to 8,494.49 points.
China's central bank has held the yuan's daily midpoint steady in the past few days and used state banks to soak up liquidity in Hong Kong which has made it prohibitively expensive to bet against the yuan offshore.
Beijing's intervention helped ease fears of sustained yuan depreciation and helped bolster stocks.
All main sectors rose in Hong Kong, with energy and telecommunications shares among the biggest gainers.
Shares of lifestyle magazines publisher One Media Group Ltd surged 19 per cent as trade resumed after a controlling shareholder said it was in talks to sell control of the company.