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Hong Kong shares edge down as panic over Brexit impact eases
[HONG KONG] Hong Kong shares were little changed on Monday after Friday's plunge, as the panic sparked by Britain's decision to leave the European Union eased.
The Hang Seng index slipped 0.2 per cent, to 20,227.30 while the China Enterprises Index, which tracks Hong Kong-listed Chinese companies, gained 0.4 per cent, to 8,567.21 points. Major mainland market indexes rose more than 1 per cent.
"After the epic volatility surge, assets that are most sensitive to Brexit, such as the GBP, European banks and the Hang Seng, have reflected much of the known bearish confluences near term," wrote Hao Hong, chief strategist at BOCOM International.
"But even if a technical reprieve could be in store, potential USD strength and mild market sentiment despite a significant plunge suggest any oversold relief will be transient, and fraught with bouts of volatility," he said.
"Hence, it will be very difficult to trade."
On Monday, gains in resource and telecom shares offset losses for IT stocks.
Shares of China Vanke Co Ltd dropped 3.5 per cent to a four-month low after China's biggest property developer said major shareholders want to oust its chairman as a power struggle escalated.