Hong Kong: Shares edge up after rebound on China markets

[HONG KONG] Hong Kong shares finished slightly higher on Wednesday, erasing morning losses, following a rebound on mainland markets from the previous day's plunge.

The Hang Seng index rose 0.2 per cent, to 23,527.43, while the China Enterprises Index gained 0.4 per cent, to 11,372.62 points.

Analysts said Hong Kong investors were cautious after Tuesday's sharp drop in markets in the city and on the mainland.

"Overall the Chinese banking and insurance sector in Hong Kong did not have much momentum to rebound after the fierce drop," said Castor Pang, head of research at Core Pacific-Yamaichi in Hong Kong.

Among the most actively traded stocks on Hong Kong's main board were CGN POWER, unchanged at HK$3.31 CCT Land Holdings, up 13.3 per cent to HK$0.02 and Bank Of China , up 0.2 per cent to HK$4.16.

Chinese investment flowing from Shanghai into Hong Kong through the mutual market access pilot programme took up 0.39 billion yuan of the 10.5 billion yuan daily quota.

Total trading volume of companies included in the HSI index was 2.3 billion shares.

REUTERS